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You must send letters to creditors and collectors, and should always
maintain accurate records of your actions! (needs
editing)
- General Instructions
- Preparing Documents to Fax and
Mail
- Mailing Instructions
- Maintaining Proof of Your Actions
General Instructions
It is very important to keep copies of everything when communicating
with creditors, debt collectors, credit reporting agencies and credit
repair agencies. This means keeping copies and records
of all correspondence sent and received . . . including the envelopes!
Should the creditor, debt collector, or credit reporting or repair
agency violate the law, you will have the necessary documentation to
prove it, and perhaps sue them in civil court. If you encounter
difficulty and need to hire a lawyer or file a formal complaint,
accurate records are needed to support your case.
It is recommended that you send a fax and also send a certified copy
via the U.S. mail, as well as standard first class mail with proof of
mailing ["certificate of mailing"]. This is necessary because they may
not accept your certified mail, or deny receipt of the fax, but with the
standard first class mail, you have gone the extra mile, and can prove
it if necessary.
Print the outline below and use it as a checklist when preparing and
mailing your letters.
Preparing Documents to Fax and Mail
Step 1: Write the Letter (initial or follow-up
dispute, creditor's agreement, or credit report request etc.).
Consider hand writing your letter but if you type it, be sure to sign it
and send the original to avoid it looking like a form letter.
Step 2: Sign and date all letters in black
ink!
Step 3: Make two copies of your signed letter, and
two copies of any attachments.
Step 4: Fax the letter and all attachments (keep the
fax confirmation sheet for your records)
Step 5: Staple the original
attachments to a copy of your letter, and save for your
files.
Send original letters but never send original receipts or other
original documents!
Step 6: Properly address two envelopes, with the
correct return address but, do not put stamps on them!
Step 7: Staple one set of attachment copies to your
original letter, and place in envelope #1.
Step 8: Staple one set of attachment copies to a
copy of your original letter, and place in envelope #2.
Step 9:Take both letters to the Post Office and
follow the mailing instructions.
Mailing Instructions
Envelope # 1
Go to the post office and send it by certified mail with
return-receipt requested then, take the cash receipt stamped with
the amount and date and when your certified return receipt arrives
via the mail, save both of these in a file marked "Credit Disputes".
Envelope #2
Go to the post office and have them send it by 1st class mail
using a "certificate of mailing" (proof that it was mailed). Keep
the dated/stamped cash receipt and ask for a dated/stamped
"certificate of mailing" (small extra fee) receipt, then save both
of these in a file marked "Credit Disputes".
Maintaining Proof of Your Actions
You should have the following items as proof for each letter you
send:
- A copy of the creditor, debt collector, or credit reporting
agency letter;
- The envelope that the documents in number 1 came in;
- A copy of your signed letter with attachments stapled to it;
- A fax confirmation sheet
- A dated/stamped cash receipt from the post office (envelope #1)
- A return-receipt, after it arrives in the mail (envelope #1)
- A "certificate of mailing" receipt (envelope #2 -first-class
letter )
- A cash receipt for the "certificate of mailing" (envelope #2)
Place all of these in a folder marked "Credit Disputes"
and file away in a safe place for at least 15 years. Check the
Statue of Limitations to see if you should keep the records longer!
You want to repair your own credit but aren't sure where to
begin. Use the step-by-step credit report dispute procedures
below to begin repairing your own credit.
Step 1:
Obtain Current Credit Reports
Step 2: Review Personal
Information
Step 3: Rank Order
Questionable Items
Step 4: Initial Dispute
to Correct Information
Step 4a: Understanding
the Credit Reporting Agency's Legal Obligations
Step 4b: Follow Up
Dispute Letter
Step 5: Notice of Intent
to File a Formal Complaint with FTC
Step 6: Repeat Dispute
Until All Information is Corrected
Initial steps for disputing credit reports with free sample
letters to creditors for disputing personal credit reports plus
step by step instructions for disputing credit reports and
personal history records!
Step 1: Obtain current credit reports
Credit bureaus require you to have a recent report (less
than 90 days old) before they will consider your dispute!
The good news is that you only need to purchase the first
report because after dispute an item and it is corrected, the
credit bureau is required by law to send you a brand new
credit report free.
There are basically two types of credit reports: single
reports and tri-merge reports. Single reports are best if you plan to
repair your own credit files, although it provides a limited
perspective. If you plan to hire a credit
repair organization, a tri-merge might work but before
purchasing one, ask them if they need individual reports.
Now, the FACTA allows you to order one free
consumer disclosure every 12 months per credit bureau. If you have
not ordered one in the last 12 months, click on the link
www.annualcredit report.com. Please note that this
is not a true credit report, since it does not disclose any
credit scores.
Step 2: Review Personal Information
The first, and most critical step is reviewing
your personal information!
Once you have a current credit report, review the
following personal information for any inaccurate,
incorrect, erroneous, misleading, or outdated information!
- Names and Aliases (full names, spelling, Jr, Sr,
III, maiden, married, nicknames, etc.)
- Addresses (check zip codes)
- Social Security Number(s)
- Date(s) of Birth
- State ID Number(s) (drivers license, student IDs,
government Ids etc.)
- Spouse Information (maiden names, previous marriage
names, nicknames etc.)
- Employers (names, dates, locations, type of
termination etc.)
Items that do not belong to you appear on your credit
reports more often than you realize. And, once there, it
tends to stick because it somehow matches up with other
incorrect personally identifying information elsewhere in
the report.
Always dispute mistakes in your personal
information first, because this data is used to
help verify all other items on your credit report! By
disputing erroneous personal information first, other
negative items will no longer match your personal
information thus, your case to have them removed becomes
that much stronger. (see
step 4)
Step 3: Rank Order Questionable Items
After you've disputed and had corrected any personal
information, you can then begin the next step of carefully
reviewing the rest of the items and note any inaccurate,
incorrect, erroneous, misleading, or outdated information
then, rank order (see Rank Order Below) each item according
to its relevant importance.
It does not matter whether the information is negative,
neutral, or even positive; if it is in anyway erroneous,
have it removed! An absolutely accurate credit report is
paramount to determining your credit worthiness!
Rank questionable items according their
significance using the following ordered list.
back to step 6
- Personal data (see
step 2 )
- Bankruptcy (included or excluded items, chapter
filed, filing date and so forth)
- Consumer credit counseling (date entered counseled,
progress, etc.)
- Foreclosure (attempts, completed actions, dates,
amounts, etc.)
- Consumer credit counseling loans (debt consolidation
loans, amounts, dates, what other debts were included,
etc.)
- Default (dates, amounts, etc.)
- Repossession, (voluntary or involuntary, amount
owed, dates etc.)
- Court judgments (date, amount, type, reason etc.)
- Collections (be sure the date shows the delinquent
date NOT the date of collection actions)
- Past due payments (number past due, amount, length
of time, and if settled)
- Late payments (correct dates are critical here, they
determine how long the info stays in your reports)
- Credit rejections (be sure it's you, and why)
- Credit inquiries (be sure these pertain to you -
watch for fraud)
Be sure to perform this step on all three
national credit reports because the same questionable
information may be on one, two or all three credit reports!
Step 4: Initial Dispute to Correct Information
Mail a dispute letter to each Credit Reporting Agency
that has erroneous information discovered in
Step 2.
Free initial credit report dispute letter
Mailing and Record-keeping Instructions
***
Step 4a: Understanding the Credit Reporting Agency's
Legal Obligations
- They must investigate your dispute!
- They must inform you of the results of the
investigation!
- If they change any disputed information they must
provide an updated copy of your report - Free!
Once the credit reporting agency receives your dispute
letter, they are obligated to investigate it and this
obligation is not contingent upon you having been
denied credit. However, just saying the
information is wrong is not enough...you must present a
solid case for your dispute!.
Usually between 10 and 30 days they will send a letter
informing you that they are investigating your dispute.
Then, within another 10 to 30 days, you should receive a
letter informing you of the results of their investigation.
CAUTION! Except for personal
information which can be disputed all at once, dispute
only one item at a time! Disputing more than one item
may cause the credit bureau to reject your dispute as
frivolous.
Step 4b: Follow Up Dispute Letter
In some cases, Credit Reporting Agencies are slow to
respond to your dispute. If this should occur, write another
letter, strongly reminding the credit bureau of their
obligations under the law.
Free Follow-up dispute letter
***
Mailing and Record-keeping Instructions
***
Step 5: Notice of Intent to File a Formal Complaint
with FTC
Should the credit reporting agencies continue to ignore
you, follow up with a written notice that you intend to file
a formal complaint with the Federal Trade Commission (FTC).
Then, be prepared to contact the FTC and file your formal
complaint if you do not receive a response within 15 days of
sending your notice of intent letter. Also, consider
retaining an attorney , as willful failure to comply with
the law may subject the Credit Reporting Agency to civil
liability.
There are three ways you can file a complaint with the
Federal Trade Commission's Consumer Response Center:
Phone: toll-free 1-877-FTC-HELP (382-4357)
Or regular mail:
Mail to:
Federal Trade Commission
CRC-240 Washington, D.C. 20580
Or electronically:
Using their
Online Complaint Form
NOTE: The FTC does not resolve individual consumer
disputes but rather it gathers complaints, comments, and
inquiries to spot patterns of law violations so they can
involve law enforcement action. Your complaint also
helps them recognize and tell people about larger trends
affecting consumers.
Step 6: Repeat Dispute Until All Information is
Corrected
As soon as the Credit Reporting Agency has corrected your
personal information (steps 2- 4a) and provided you with an
updated credit report, dispute the next most damaging item
according to your rank ordered list
Remember, whether you dispute your report via official
mail or electronically (email), dispute only one item at a
time!
Continue disputing items until each and every
questionable item has been corrected or deleted from your
credit report!
When you have completed the process, you should have
accomplished two very important things --
- corrected copies of your credit reports
(supplied free by the Credit Reporting Agency);
- and a much better credit score!
Additional Notes
Note 1: Except for erroneous personal
data, dispute each questionable item individually!
Attempting a mass correction (i.e. challenging all
information) makes it much easier for the credit reporting
agency to consider this as evidence that your claim is
frivolous because you failed to provide any allegations
concerning specific items in your file.
Note 2: Unless there is clear and
convincing evidence to the contrary, Credit Reporting
Agencies are required to assume that all disputes are bona
fide and must investigate the dispute according to the
Fair Credit
Reporting Act USC, Title 15, Chapter 41, Subchapter III,
Section 1681i,
"Procedure in case of disputed accuracy?.
Note 3: Specific words to use when
writing your dispute letters: erroneous, outdated,
misleading, or unverifiable. Mere explanation of the reason
a debt was not paid might not constitute a dispute and does
not require the credit-reporting agency to re-investigate or
accept your written dispute statements.
Disputing Inaccuracies
Disputing inaccuracies on your credit report can sometimes be part of
managing your credit. Some consumers will find the process simple and quick.
For others, it may prove more complicated, as it often depends on the
cooperation of the creditor that reported the information to the credit
bureau. This article lays out the steps you can take in either instance.
The Fair Credit Reporting Act (FCRA)
protects consumers in dispute situations, mandating that credit reporting
agencies (CRAs) must respond to your dispute by initiating an investigation
and collecting evidence (where possible) from your creditors. If the
information is inaccurate, the CRA must either remove or correct the
disputed information, most often within 30 days.
The first step is to determine if there are inaccuracies in your credit file
by requesting a copy of your credit report. You can get a FREE and fast
credit check right here.
Common Types of Inaccurate Information
When you review your credit report, you'll want to look for information
that is unusual or does not belong to you. The types of account information
that are commonly disputed include:
- Information from someone else's file - Accounts belonging to someone
with a name similar to yours can be mixed with your credit information.
The fact that certain information may actually belong to someone else is
not apparent from your credit report alone. If the information is
negative, such as a bankruptcy, this can impact your credit worthiness.
Fortunately, this can be fairly easy to resolve. The bureau's
investigation often quickly confirms that the mixed information belongs
to a different person, based on social security numbers, date of birth
and full legal name.
- Inaccuracies - Because creditors sometimes report incomplete account
histories or don't always account for delays in the receipt of payments,
it is possible that your report may list late notations with which you
don't agree. Presenting back-up documentation, such as cancelled checks,
can be very useful in this situation.
- Outdated information - With the exception of Chapter 7 bankruptcy,
negative account information may no longer be reported by your
creditor(s) after seven years from the date of first delinquency. If the
creditor reports that the seven-year cycling off period has been
reached, the credit bureau may no longer report that account.
- Fraudulent Accounts - If your credit report lists accounts that you
didn't open, there could be a possibility of credit fraud. Unfamiliar
accounts opened under your name and Social Security number might be the
work of an identity thief. These accounts can sometimes be difficult to
dispute, so be patient. There are three steps to take immediately when
you learn that identity theft has occurred:
- Contact the creditor(s) to close all fraudulent accounts.
- Contact the credit bureaus to place a fraud alert on your
report. This stops automatic activation of pre-approved credit
offers, and alerts creditors to call you first for approval.
- Contact the police, and file a police report. This is a crucial
step, as some creditors won't take your dispute seriously until they
have received a copy of this report.
Basic Tips for Filing a Dispute
Generally, disputes must be filed in writing. According to the FCRA, a
credit bureau has 30 days to investigate a dispute raised regarding possible
inaccuracies on a consumer's credit report. The bureau must then give you
the written results and a free copy of your report if the dispute results in
a change.
To dispute inaccurate information on your Equifax, Experian, or Trans Union
credit report, write to the bureau that supplied the information and use the
address provided. Enclose a photocopy of your credit report with the item(s)
under dispute circled and numbered. You can make reference to these numbers
in your letter. Also be sure to include:
- Your full name, first, middle and last and including any applicable
suffixes (Jr., Sr., II, etc.)
- Your complete mailing address
- Your date of birth
- Your Social Security number (this is necessary to access your credit
report)
- The name and account number of the creditor and item in question
- The specific reason for your disagreement with the disputed item
- Your signature
Disputing Information At The Source
It is perfectly acceptable to contact your creditor directly to dispute
information they are reporting that you consider to be inaccurate. According
to the FCRA, if you tell a creditor that you dispute an item, they may not
then report the item to a bureau without including a notice of your dispute.
Furthermore, once you have notified the creditor of your dispute in writing,
they may not continue to report the information if it is, in fact, an error.
Next Phase: A Statement of Dispute
If you are not having luck persuading the creditor that an account is not
yours or was never delinquent, the FCRA allows for you to add a statement of
dispute to the relevant item on your credit report. If a resolution is not
reached after the dispute process, you can ask the bureau to add a statement
of dispute to the account. A statement of dispute is a factual description
of status for the account in question, and both the consumer's and the
creditor's versions are included. This statement demonstrates that all
attempts at resolving the dispute have failed, and communicates the details
of what happened to any future creditors.
Action to Take When Settlement Cannot Be Achieved
Achieving settlement can sometimes be difficult. When settlement cannot
be reached, you can file a dispute with the credit bureau's National
Consumer Assistance Center. To enter such a dispute, call the telephone
number included with your credit report or complete a "Reinvestigation
Request" form, which is also included with the credit report.
Although you can request a reinvestigation, there is no guarantee that
you will receive a different result the second time around-once an official
decision has been made, you will need to come up with documentary evidence
to persuade a credit bureau to delete the item. In some cases, even if you
are successful in persuading the credit bureau to delete the information, it
may wind up being added to your report again at the creditor's insistence.
If you still get no response after continued attempts to contact the
parties involved, you can contact your state's Attorney General office. If
you believe the creditor or a credit bureau has violated the FCRA, you have
the right to sue all relevant parties in state or federal court. If you win,
the creditor or credit bureau will have to pay damages and reimburse you for
attorney fees to the extent ordered by the court.
You may also wish to contact the FTC to file complaints against
non-cooperative creditors and credit bureaus. Although the FTC can't act as
your lawyer in private disputes, information about your experiences and
concerns is vital to the enforcement of the Fair Credit Reporting Act. You
may send your questions and/or complaints to:
Consumer Response Center - FCRA, Federal Trade Commission, Washington,
D.C. 20580 or visit the FTC online.
From Experian ... |
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