Credit history appeal

Appealing a credit history is a legal procedure that allows a borrower (the subject of a credit history) to initiate correction of inaccurate, erroneous or outdated information entered into his credit file. A credit history is formed by the bureau based on data received from banks, microfinance organizations and other creditors. It contains detailed information about loans taken, their repayment terms, the presence of delays, restructurings, court decisions, etc. This data determines the credit rating – a tool that financial institutions use to assess the reliability of a potential borrower. If the history contains unreliable records, for example, someone else’s loan or irrelevant debt, this may lead to a refusal to obtain a new loan or a significant deterioration in the terms of its provision. That is why it is important to initiate the appeal process in a timely manner – in accordance with the current legislation of Ukraine.

Credit history and credit rating: concept and meaning

A credit history is a written chronology of all loans taken and repaid by a person, which shows his discipline in paying off debts. Based on this data, a credit rating (credit score) is calculated, that is, a numerical assessment of the borrower’s reliability. Credit bureaus are specialized organizations under the supervision of the NBU that receive information from banks, MFIs and other creditors. The borrower about whom information is collected is called the subject of the credit history. If the credit history contains negative entries (delays, outstanding debts, etc.), this lowers the rating and may cause a refusal of a new loan. The accuracy of the credit history directly affects the financial reputation and the ability to obtain loans.

Legal regulation and rights of the credit history subject

In Ukraine, the procedure for forming and correcting credit histories is regulated by the law “On the organization of the formation and circulation of credit histories”. Citizens have the right to access their own credit history and to challenge inaccurate information. The law guarantees that the credit history subject has the right to review their credit report free of charge once a year (and additionally in the event of a loan refusal). All subsequent requests during the year may be paid services of the bureau. The key rights of the credit history subject include:

1. The right to access information. The borrower can receive their credit report from the bureau free of charge once a year to check the current state of the history.
2. The right to correct inaccuracies. If an error is detected in the data, the client may demand its correction.
3. The right to judicial protection. The law provides that “the credit history subject has the right to challenge in court” the actions of the bureau or the creditor that violate their rights.

Procedure for appealing and correcting credit history

The procedure for correcting errors in a credit file is clearly defined by law. The main steps for appealing a credit history for a borrower include:

• Receiving a credit report. First, you need to check your credit history and make sure what information needs to be corrected.
• Submit an application to appeal the data. If an error is found (for example, someone else’s loan is displayed, the status of debt repayment or delay is incorrectly indicated), you must contact the bureau with a written application for changes. The application should clearly indicate what information you disagree with and add a comment on the disputed information.
• Bureau verification and creditor’s decision. Upon receiving the borrower’s application, the bureau contacts the financial institution that provided the disputed information with a request to confirm or refute the information. The following results are then possible:
• If the creditor confirmed the correctness of the entry – the bureau leaves it unchanged.
• If the creditor admitted the error – the bureau corrects the data.
• Notification of results. After checking and making (or not making) changes, the bureau notifies you of the result of the application review. This is designed to restore your reputation with potential creditors who may have seen the incorrect information before it was corrected.

If the error is caused by fraud (for example, a loan was illegally issued in your name), you should immediately notify the police and the creditor. A detailed algorithm in this case is described in the article – How to check if I have loans.

Challenging the actions of bureaus and creditors in court

Challenging your credit history is not only a right, but also an effective tool for protecting your financial reputation. If you encounter errors in your credit report or inaccurate information, do not delay. Regularly check your history, keep all documents confirming debt repayment, and react immediately if inaccuracies are discovered. A refusal from a bureau or creditor is not a sentence.

To avoid formal errors and achieve a real result, it is important to seek professional help. The lawyers of the company “Prykhodko and Partners” have practical experience in the field of credit disputes, bankruptcy and protection of debtors’ rights. We will help you file a lawsuit, collect evidence, defend your position in court and achieve correction of your credit history.

Don’t let erroneous entries ruin your financial future — contact the specialists of “Prykhodko and Partners” today and regain control over your credit reputation.