How to Dispute a Listing on Your Credit Report
If you’re attempting to repair your credit, you will need to know how to dispute a listing on your credit report. The dispute process outlined here can be used for both debts listed by original creditors and debts listed by third-party debt collectors (collection agencies and junk debt buyers).
Always dispute with the credit bureau first!
If you need to dispute a listing on your credit report, you should start by disputing with the credit bureaus first, rather than by first contacting the data furnisher (DF). (The data furnisher would be the creditor or third-party debt collector that placed the debt on your report.) Here is the reasoning behind this advice: You can dispute directly with the DF first, and they will still be legally obligated to comply with your request. But per the Fair Credit Reporting Act (FCRA), if you do not dispute with the credit bureaus first, you give up your right to sue the data furnisher if they fail to properly investigate your dispute! (Although at that point, you could still report the violation to the Federal Trade Commission and your state Attorney General, and they could then sue the DF.)
How should you go about filing a dispute with a credit bureau?
You have to be a little careful with this, and I’ll explain why: On the one hand, the FCRA protects you from having incorrect or unverifiable items listed on your credit reports. It requires the credit bureaus to investigate any information you dispute in a timely manner, and to delete or correct any information that can’t be proven to be accurate. Sounds great so far, right? Not so fast…
The credit bureaus actually have rights under the FCRA too. They have the right to ignore/refuse to investigate your dispute if they deem the dispute to be “frivolous”. Here are examples of what a credit bureau might consider to be a frivolous dispute:
-a dispute that is not specific enough
-a dispute that is written using a “form letter”–The credit bureaus reject these because they assume they come from credit repair companies (and no, it’s not illegal to use a credit repair company–the credit bureaus just don’t want you to). This is why I recommend that you never copy a sample dispute letter exactly; you should always use your own words!
-a dispute that is exactly same as one you have submitted previously
-a dispute that challenges too many items on your report at once–The credit bureau will assume you are disputing all the negative items on your report regardless of their accuracy.
Needless to say, you don’t want your disputes to be deemed frivolous, but at the same time you need to cover yourself when dealing with credit bureaus and data furnishers. So, I recommend the following approach:
Always dispute in writing, and mail the letter certified mail. I don’t recommend sending it with return receipt requested; I think the credit bureaus tend to associate that with the work of credit repair companies. You do need to know when they have received your letter, but you can track certified mail via the USPS website to see when it’s been delivered.
I know of some credit repair experts who recommend writing your dispute letter in strange colors of ink on colored lined paper. They suggest this because the credit bureaus scan dispute letters to be read by a computer that picks out the “form letters” so they can be treated as frivolous. Apparently the weird colors can’t be scanned, and the credit bureau employees will be forced to actually read your dispute in order to decide whether to ignore it or not. You can certainly do this, but I’m not sure that you really need to, as long as you use your own words in your dispute.
As for the wording of your dispute, I think it’s important that you don’t come across as too credit-savvy. The best tone to take is that of a genuinely concerned/upset consumer who might have some knowledge of his/her rights, but not too much. Remember, you don’t want to sound like someone who does this all the time (i.e., a credit repair company).
You can dispute an account in its entirety, or you can dispute the details of the account, such as the date of last activity, the high balance, late payments, etc. It’s important that you do not lie in your disputes; don’t dispute an account as “not mine” if you know that it’s yours.
What happens after you dispute with the credit bureau?
You will need to wait for the results of your dispute. Once the credit bureau receives notice of your dispute, they have 30 days to complete their investigation. They are supposed to contact the data furnisher to verify the accuracy of the listing. Hopefully, this investigation will result in the disputed listing being corrected or deleted entirely from your credit reports. But if it doesn’t, don’t panic!
What to do if the investigation results in the disputed item being “verified”
If a data furnisher verifies with the credit bureau that the listing is correct, you can and should contact the DF and ask them exactly what type of documentation they have that proves the accuracy of the derogatory item. Don’t be surprised if they have absolutely no documentation whatsoever. If that turns out to be the case, you will need to notify them in writing that they are in violation of the Fair Credit Reporting Act by listing unverifiable information on your credit reports. Advise them in writing that you will sue them if the offending items are not corrected or deleted, and that you will also notify the FTC and your state Attorney General. Send the letter via certified mail with return receipt requested.
Related posts:
- How To Repair Your Own Credit Report – Part 3
- How To Remove Public Records From Your Credit Report
- Inquiries On Your Credit Report
- How To Repair Your Own Credit Report – Part 2
- Fair Credit Reporting Act (FCRA)
Filed Under Fair Credit Reporting Act (FCRA), credit repair, disputes | Leave a Comment
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