Often we hear from consumers that they pay bills they do not feel they owe, just to avoid having their "credit ruined." This is a shame, because the fact is that there is a lot you can do to maintain your credit, even in the face of problems.

There are three major credit reporting agencies in the United States: Experion (800-322-3162), Trans Union (800-888-4213) and Equifax (800-685-1111). These are the companies that collect information on your credit history and provide it to lenders or prospective employers. However, they all operate under government regulation. You have some control over what they do.

First, no vendor can report nor threaten to report your failure to pay a disputed charge to any credit reporting agency until they have investigated your claim and notified you of the amount of time you have to pay the amount due before incurring further charges.

If you still do not pay the bill after they report to you, the creditor may report you to a credit reporting agency, but must inform you of the agency to which it has sent this information. Also, if you continue to dispute the bill, the creditor must report that fact to the agency, and must correct any information given to the agency if the bill is subsequently resolved.

The agency must include the fact that the bill is under dispute. In addition it is obligated to provide you with one free copy of your credit report each year— if you request it. You must also be given a free copy of your credit report if you are denied credit because of its contents.

If you have any doubts about your credit report, it is a good idea to get a copy and check it carefully. If you find anything on your file that you believe to be inaccurate or incomplete, you should notify the agency in writing and they must investigate the dispute within thirty days unless they have specific reason to believe that the dispute is frivolous or irrelevant.

If they do investigate the dispute and find that information is no longer accurate or cannot be verified, they have three business days to remove it. If the investigation fails to resolve the dispute, you may submit a statement of no more than 100 words describing the dispute and the credit reporting agency must include a copy of that statement with any credit report it may issue on you.

We would be happy to send you a free booklet with all of this information and lots more. Just call us at the number below and ask for a copy of "the Attorney General's Consumer Guide to Credit."

Paul Schrader is Executive Director of the Cape Cod Consumer Assistance Council (CAC) , one of 19 local consumer programs in Massachusetts sponsored by the Attorney General's Office. Relying heavily on volunteers, these organizations attempt to mediate consumer problems with vendors. There is no charge for the service. If you have a problem with a vendor, call the CAC at 508-771-0700.