How to Fix a Mistaken Credit Bureau Deceased Designation

How to Fix a Mistaken Credit Bureau Deceased Designation

When you’re a living, breathing human being falsely flagged as deceased by a credit bureau, it can be a startling, stressful (and even existential) experience. However, beyond the immediate shock value, it is a serious error that can, and frequently does, create real-world harm to the consumer caught up in this scenario. Whether you’re a security-savvy consumer who discovers this error during an annual review of your credit profile, you learn of the mistake through a failed credit check or background check, or you receive condolences in the mail from a financial institution, knowing how to dispute this inaccuracy with one (or all) of the credit bureaus is critical.

If you’ve been frantic since discovering that the credit bureau says you’re deceased, I’m here to help you understand the relevant law and the legal implications. I’ll explain the process for requesting an error correction, the potential problems that arise, and how to find help when needed. Keep reading for the knowledge and resources you’ll need to protect your credit, assets, and peace of mind.

Credit Bureau Deceased Alert

Whether you are an applicant (for a loan, job, or mortgage) who received a credit bureau deceased alert or just a consumer who has otherwise discovered that you were mistakenly reported as deceased by one or all of the credit bureaus, it is helpful to understand how this alert is generated.

The businesses commonly referred to as credit bureaus are Equifax, Experian, and TransUnion. They are just the three largest and most used national credit reporting agencies (CRAs), of which there are several dozen. You can find a list of active CRAs on our website. List of Credit Reporting Agencies - Consumer Attorneys CRAs are the companies that create credit reports and other consumer reports like background checks by purchasing consumer data, including financial records, from other companies.

The companies that sell the data to the CRAs are called “furnishers” because they furnish (or provide) the data. Data furnishers include credit card companies, banks, lenders, retail stores, and other companies that gather criminal, civil, and municipal records.

So, when a CRA packages and sells a credit report on an individual, it pulls data from a vast network of data furnishers using software and algorithms to gather and compile the information. In part, the sheer scope of this operation makes it rife with unnecessary and harmful errors, one of which is a credit bureau mistakenly alerting you (and others) to your untimely demise. If any one of these data streams inaccurately reports a consumer as dead, the news and ramifications tend to spread quickly until, ultimately, an alert gets triggered at one of the credit bureaus.

If you haven’t received an alert but simply want to check if a credit bureau shows you’re deceased, you can access a free credit report annually and review it for any errors. (See below for specifics on how to do this.)

Why Does My Credit Report Say I'm Deceased?

If, like many others, you find yourself wondering, "Why is a credit bureau reporting me as deceased," we can help shed some light on this financial fiasco and help you dig your way out. There are four primary reasons why a credit report may falsely identify you as deceased, including:

1. Input error: When data is entered at any of the various companies and municipal authorities that furnish it to the CRAs, it can be inadvertently entered incorrectly. A date or number may be transposed, mixed up, or left off; a name may be misspelled or incomplete; or a location may be identified incorrectly, etc. Importantly, when input errors are made by the Social Security Administration (SSA), it can result in an error in which a Social Security Number is associated with the wrong individual, falsely identifying someone as deceased.
2. Affiliated account holder died: If a consumer holds or has held any joint or affiliated accounts, either personal or business, and the other person(s) die, the deceased designation can erroneously get linked to the surviving account holder.
3. Mixed Files: These credit reports contain co-mingled data belonging to two unaffiliated individuals. Mixed credit reports (often referred to as Mixed Files) are relatively common. Your file may have been a mixed file for years, going undetected until the other consumer's death triggered the alert in your file. Mixed files may result from input errors that erroneously link two accounts. This data co-mingling snowballs over time as each consumer accrues a growing credit history. Another common cause is lax review and investigation protocols by the CRAs, which fail to catch mixed data that should have and could have been identified with reasonable ease.
4. Identity Theft: It is possible to be falsely flagged as dead if you are the victim of identity theft. When thieves and scammers start opening, closing, and otherwise meddling in your credit portfolio, it is possible for all kinds of errors to manifest, including a credit bureau reporting you as deceased. And this type of fraud can lead to extensive financial damage.

When a credit report deceased indicator shows up on your credit profile, it can have significant consequences for your financial and emotional well-being. While it’s helpful to understand the ways that this error happens, the most important thing is that you take immediate action to correct it. So, whether you’ve been mistakenly listed as deceased due to input errors, the death of a co-signer, mixed files, or identity theft, keep reading to learn how to fix the errors and get your financial health back in order.

Why You Need to Fix this Error

When the SSA, a data furnisher, or a credit bureau reports that an applicant is deceased, the impact can be swift and severe.

Our consumer economy is chronically balancing the need for consumer credit (to bolster purchasing power) with potential risks to the lender (to prevent widespread losses). Credit reports play an essential role in balancing these objectives. The reports provide a complete analysis of the creditworthiness of each consumer. They are used to determine whether a particular consumer is likely to repay a debt, how much debt the consumer can successfully manage, and whether any red flags indicate a potential risk of default (or failure to repay a loan).

Generally, when errors show up on credit reports, it can mean loan denials, burdensome loan terms, and employment rejections. However, if you are mistakenly reported as deceased, not only can a single credit line or job opportunity fall through, but you can lose access to ALL lines of credit and even your own assets. In other words, not only might you lose out on the purchase of a new home because your mortgage application is denied, but you might also face things like:

1. Loss of your credit score or credit history.
2. Loss of access to all lines of credit, including credit cards declares.
3. Loss of access to your bank and retirement accounts.
4. Loss of access to Social Security payments and tax refunds.
5. Denial of employment or housing opportunities.
6. Denial of health insurance.
7. Denial of a driver's license renewal.
8. Travel impediments (especially for international travel).
9. Marriage, divorce, or custody impediments.

The impact and implications of this type of reporting error are far-reaching, and you should not delay seeking error corrections.

What to do if a Credit Bureau Erroneously Lists You as Deceased

If one or all of the credit bureaus, or any other CRA, declares you deceased, knowing what to do is critical. You should immediately contact a consumer protection attorney and dispute the error through all appropriate channels. (See detailed information below.)

How to Dispute a Death on a Credit Report

Disputing a false designation of deceased on your credit report is basically a cumbersome process of identity verification and legal wrangling. This is why you should start by reaching out to a consumer protection attorney as soon as you become aware of this type of error.

Buying, selling, and maintaining consumer credit data is regulated at the federal level under the Fair Credit Reporting Act (FCRA) and at the state level through equivalent or adjacent legislation. The FCRA protects consumers in this type of situation by holding CRAs and furnishers accountable for gathering, processing, storing, and disseminating consumer data. These companies are held to a legal standard requiring the use of “reasonable procedures to assure maximum possible accuracy.” There are numerous ways in which company protocols and practices may fail to meet the burden of this standard.

Working with a skilled, experienced, and knowledgeable attorney helps ensure that your rights are protected; that CRAs, furnishers, and administrative agencies are responsive, thorough, and held to account; that fraudulent activity, if any, is detected; and that you are compensated for any harm you sustained, including for emotional distress.

Steps to follow if a credit bureau declares you deceased

1. Contact a consumer protection attorney. An attorney will guide you through this process, protect your rights, navigate the legal landscape, and help prevent some of the hazards that characterize this area of the law, including delays, stalls, insufficient and ineffective investigation, and failure to correct the error.
2. Review your credit report in depth. A thorough review is necessary to determine the extent of the error. Is a single account impacted, such as a specific credit card account? Is your entire credit profile marked as deceased? You can undertake this review by accessing a free copy of your credit report.
   
   If you discovered the error following a credit check, the company that ran the check must provide you with a copy of the report. Or, if you discovered the error independent of a credit check, you have the right to access a free credit report annually from each of the big three CRAs: Equifax, Experian, and TransUnion.
   
   There are three ways that consumers can request a copy of their free credit report: online at annualcreditreport.com, by phone at 877-322-8228, or by mailing a request form, which can be printed at annualcreditreport.com. Online requests should only be made through the above government-verified site.
3. Dispute the error. Depending on the extent of the misinformation, you will need to dispute the error with the Credit Bureaus/CRAs, furnishers, and SSA. (See below.) Please note our advice to dispute via mail. Follow the procedures outlined by each entity with which you file a formal dispute.
4. Provide documentation. Fixing a false designation of death generally requires the provision of a significant amount of documentation for the validation of your dispute. This is particularly true if the SSA is the entity that has erroneously flagged you as dead.
5. The dispute is frequently just the beginning. The fact that the dispute process is anything but streamlined tends to make these cases complicated. Stalls, delays, and deadends are frequent. Contact a consumer protection attorney today if you haven’t already done so. Knowing the dispute process is only half the battle. Knowing your rights under the law, how to enforce them, and how to get compensation for your damages is everything.

Dispute with the Credit Bureau(s)/CRAs

Whether the erroneous death designation is linked to a single account by a single furnisher or a broad designation across your entire credit profile, you must dispute this mistake with the credit bureau(s) to initiate the remediation process. If you still need to do so, request your free credit report from each of the credit bureaus (see above).

However, note that even if you dispute the deceased designation and the discrepancy is corrected, you may still have a valid legal claim against the CRA. Specifically, if the CRA sold data containing the deceased designation to another company, it may still be liable. You should contact a Consumer Protection Attorney right away. Hiring a lawyer also increases the likelihood that the CRAs won’t make the mistake in the future.

Though the information reported by one CRA is usually identical to that reported by the other two, this is not always the case. The Consumer Financial Protection Bureau provides direct contact information for consumer disputes with the Credit Bureaus on its website.

BE AWARE that submitting disputes online requires you to agree to the terms and conditions of the dispute, which are not in your favor. Specifically, using the online dispute platform requires you to give up your right to sue the CRA, which you may want to avoid forgoing at the outset of the dispute resolution process. We recommend disputing this error via certified mail.

Dispute with the Creditor or Furnisher

If the error is being reported by a single creditor or furnisher, follow their procedures to file a formal dispute, including the provision of the necessary documentation. (Please see the above warning regarding the use of an online dispute platform.) Examples of creditors and furnishers who might mistakenly report a death associated with your account include credit card companies, banks, retirement accounts, mortgage holders, employers, municipal records, etc.

Dispute with the Social Security Administration

If you have been erroneously designated as deceased by the Social Security Administration (SSA), this means that your name has been entered into the Death Master File (DMF), which records the death of everyone issued a Social Security Number (SSN).

In order to dispute your death with the SSA and remove your name from the DMF, you'll need to bring documentation to your local SSA office for an in-person authentication process. The SSA website lists the types of documents that will satisfy their requirements for proof of life after a false death. Online Services | SSA Please note that the SSA will not accept copies of documents, only originals.

Following confirmation of the error, the SSA will provide a document stating that your death was falsely reported and has been formally corrected. Resolving the problem will require you to give this to any entity that has reported you as deceased, has closed or locked accounts, or has denied you credit, services, or employment based on the error.

Benefits of Professional Legal Support at Consumer Attorneys

While you might think that CRAs and furnishers have learned from the Ghosts of Credit Mishaps Past and improved the protocols and processes they use to gather, review, and report consumer data, you are mistaken.

Some of the industry's reluctance to buoy the mechanisms for consumer protection within the system is due to the overwhelming size of the operation. The rest is likely due to the fact that the buying and selling of consumer data is a for-profit industry that broadly generates $200+ billion dollars per year in the United States alone.

While much of this data profiteering is in the name of marketing consumer goods and services, consumer credit data represents a meaningful, multi-billion dollar chunk of this overall market. Implementing the types of review, investigation, and correction protocols necessary to really cut down on unnecessary and harmful mistakes would require a reimagining and reinvestment that is unlikely. So, for now, consumer data privacy and accuracy are not prioritized.

In fact, despite regulations and consequences, the credit bureaus, other CRAs, and data furnishers have a vested interest in doing the least possible on your behalf. With the system stacked against you, a consumer protection attorney is your greatest ally and your best asset. At Consumer Attorneys, we have a direct vested interest in helping you protect your credit, livelihood, and well-being and in getting you compensation for the genuine harm that errors like this can cause.

So, when you’re left wondering, “What should I do if a credit bureau declares me deceased?” Start by calling Consumer Attorneys. Our attorneys have over fifteen years of experience helping thousands of clients resurrect their financial lives after being falsely reported as dead. Our attorneys are equipped to navigate the protocols and pitfalls of this complicated process and protect your rights along the way.

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At Consumer Attorneys, our consultations are always free, our attorneys’ fees and costs are paid by the companies we sue, and we only get paid if you win.

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