Disputing Incorrect Credit Reference Agency Data: The Full UK Process

Why Credit File Errors Happen

Credit reference agencies (CRAs) don't create data — they collect and compile it from lenders, utility companies, local authorities (for electoral roll data) and public records (County Court Judgments, bankruptcies). Errors typically originate at the source:

• A lender fails to update a file after you've paid off a debt.
• A default is recorded against the wrong person (common with similar names/addresses, or after a change of address without updating all providers).
• An account is incorrectly linked to you via a "financial association" (e.g., a joint account or previous relationship) that no longer reflects your circumstances.
• Fraudulent accounts opened in your name (identity theft) appear on your file.
• Address history errors cause accounts belonging to a previous occupant to be linked to you.

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Step-by-Step: How to Dispute an Error

You can raise a dispute either with the CRA itself or directly with the lender who supplied the incorrect data — both routes are valid, though contacting the CRA often triggers a faster formal investigation process since it has statutory timescales attached.

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The 28-Day Rule

Under the framework governing consumer credit data (rooted in the Consumer Credit Act 1974 and reinforced by UK GDPR's accuracy principle), a CRA that receives a dispute must:

• Investigate the disputed entry, typically by contacting the data provider (the lender).
• Either correct/remove the data, confirm it as accurate, or mark the entry as "disputed" pending resolution — all within 28 days of receiving the complaint.

If the CRA can't complete the investigation within 28 days, it must add a note to the file indicating the entry is under dispute, which itself signals to future lenders that the accuracy is contested.

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Notice of Correction: Your Fallback Option

If, after investigation, the lender maintains the data is accurate but you still believe it is wrong or misleading — for example, a missed payment that was genuinely caused by a bank error rather than your own default — you have a statutory right to add a Notice of Correction.

Key facts about a Notice of Correction:

• Maximum 200 words.
• Attached to the disputed entry specifically, visible to future lenders who view your file.
• Does not remove or alter the underlying data — it adds your explanation alongside it.
• CRAs can refuse a Notice of Correction if they consider it false, defamatory, or not relevant, but this is uncommon for genuine disputes.

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When to Escalate Further

For most disputes involving a specific lender (a bank, credit card provider, or loan company), the FOS is the primary free escalation route once you've exhausted the lender's own complaints process (see our separate guide on the Financial Ombudsman complaint process for full details on timescales and eligibility).

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Fraud and Identity Theft Cases

If the incorrect entry is the result of identity theft (an account you never opened), the process differs slightly:

• Report it to Action Fraud (the UK's national fraud reporting centre) and to the CRAs.
• Consider registering with CIFAS Protective Registration, a low-cost service that flags your identity for extra verification checks by lenders, reducing (though not eliminating) the risk of further fraudulent applications.
• CRAs and lenders generally move quickly to remove confirmed fraudulent accounts once fraud is established, as they have their own regulatory obligations around data accuracy.

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Practical Tips

• Check your file with all three CRAs — free statutory reports are available from Experian, Equifax and TransUnion, and many offer free ongoing monitoring services too.
• Keep dated evidence of every communication.
• Correct your electoral roll registration promptly after moving — this is one of the most common sources of address-linked data errors.
• Don't assume an error will simply "age off" — a live inaccurate default can suppress mortgage or credit applications for years before the 6-year retention period ends.