This is the $64 question. The Yale University School of Law put together an excellent publication that states, "Consumer reporting agencies must correct or delete inaccurate, incomplete or unverifiable information..."
http://www.yale.edu/hronline/careers/screening/documents/FairCreditReportingAct.pdf This is the first key to understanding what information can be placed on your credit report and which party bears the burden of proof. There are volumes of case law on this subject, but don't expect to see the credit bureaus placed in a negative light when looking for this definition on their websites. This would be like the IRS providing you with a guide on how to fool the tax auditor.
Consumers don't really know what should and should not be on their credit reports and hence, don't have the basis to challenge the information it contains. Look at the class action law suit filed at www.bankruptcydischargesettlement.com. This law suit alleges that bankruptcy debts in particular were manipulated to bring down credit scores more than they would be from the bankruptcy itself. There is a clear advantage to banks and insurance companies who profit from charging higher rates and fees to this class of consumer.
The process of identifying "inaccurate, incomplete, and unverifiable" information is best accomplished by someone who knows exactly what information is being reported. Many times, there can be something as simple as the opening date of the account that is wrong. Be definition, this is inaccurate. If the last activity date is unknown, this is incomplete. If the current balance on a loan cannot be verified, then that information is unverifiable. There are numerous other pieces of data that all fall under this same category.
