Share on Facebook The Fair Credit Reporting Act of gives you the right to dispute inaccurate information on your credit reports.
In order to finance a home, car or low-cost insurance policy, it is essential for consumers to have a good credit rating. Consumers are entitled to a free credit report every year, and if a company or bank refuses them credit based on their poor credit rating.
They must ask for it within 60 days of the refusal. The purpose of viewing a credit report is to see if it is accurate. Credit reports often have mistakes and inaccuracies that can be challenged by the consumer and removed by the creditor. However, if the reasons for a poor credit rating are accurate, they cannot be legally removed.
There are steps a consumer can take to repair their credit if it is at all possible. Consumers can send a credit restoration letter to the credit reporting agencies, which are Experian, TransUnion and Equifax.
These credit reporting agencies are required to provide consumers with an annual free copy of their credit report, and there is no cost for disputing outdated items or errors on the report.
An outdated item is a debt that is more than seven years old, or 10 years for bankruptcy.
It may be possible to dispute a credit report online, but if it is going to be done by mail, there are some things that need to be included in the letter: Credit reporting agencies are required to investigate and respond within 30 days to consumers who register a dispute Credit Reporting Agency The credit reporting agency will send the disputed items to the creditors who must investigate.
The results of the investigation must be reported back to the credit reporting agency. If the disputed information is inaccurate, the creditor should inform the agency and the credit report corrected. A copy of the corrected report must be sent to the consumer and may be requested to be sent to a bank or other lender.
Below are sample dispute letters to the credit bureaus. The consumer needs proof that the letter was sent and received, so it should be written in formal business-letter style and sent by certified mail.
The sender should keep a copy. Any documents, cancelled checks and receipts that are included should be copies and not original documents.Use this letter to demand that a credit bureau continue to investigate items you have initiated a dispute on.
Often a CRA will accuse you of using a credit repair company, which by the way is your right! Use this sample to draft a letter disputing errors on your credit report.. Your letter should clearly identify each item in your report you dispute, state the facts and explain why you dispute the information, and request that it be removed or corrected.
SAMPLE LETTER Credit report dispute This guide provides information and tools you can use if you believe that your credit report contains information that is inaccurate or incomplete, and you would like to submit a dispute of that information to the credit reporting company.
Writing letters is the best practice when dealing with the credit bureaus, your creditors, and collection agencies. Why? Because it allows you to keep concrete evidence of your communications should you need to provide evidence in a lawsuit against them.
Sample Letter of Explanation to Dispute Credit Report. NOTE. All 3 of the credit bureaus now accept filing of disputes online, with Experian only accepting online submissions.
A credit dispute letter is a document you can send to the credit bureaus to point out inaccuracies on your credit reports and to request the removal of the errors. In the letter, you can explain why you believe the items are inaccurate and provide any supporting documents.