How to Dispute a Credit Report With a Form Letter
The Federal Trade Commission (FTC) states that all consumers are allowed to dispute mistaken credit report items. The Experian, TransUnion and Equifax credit bureaus have electronic forms on their websites, but the FTC recommends putting disputes in writing and submitting them through postal mail. Consumers can use form letters that are customized appropriately for each bureau.
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Process
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The dispute process means checking your credit report, identifying any errors and notifying the credit bureaus. Consumers get one free copy of their credit report from the three bureaus every 12 months. No-cost reports must be requested through annualcreditreport.com, according to the FTC. The bureaus must investigate complaints within 30 days and send a written response on whether the information was verified or removed from the reports. The Fair Credit Reporting Act (FCRA) requires that the information be erased if the lender cannot validate it or does not respond to the consumer's inquiries.
Considerations
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The credit bureaus gather their information separately because they are independent companies. Sometimes this means they have varying data about the same consumer, including different mistakes. Form letters must be customized for each bureau or the disputes could be ruled "frivolous" or "irrelevant." Divorcenet, a legal information site, warns that the FCRA lets bureaus automatically reject such complaints without investigation. Prevent this by including only the relevant disputes in each bureau's letter and plainly stating why the information is wrong.
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Content
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The FTC recommends starting a dispute form letter with a statement of the letter's purpose, such as, "I am writing to dispute some information on my credit report." List the questionable items and give a customized description of what is wrong with each one. The form letter should close with a call for action, such as, "Please investigate these items within 30 days and notify me of your findings. I expect errors to be fixed or removed." Include demographic information like name, address, phone number and Social Security number, and put a list of enclosures after the signature. Typical items include a copy of the appropriate credit report with challenged items circled or highlighted and document copies supporting the disputes, such as statements or receipts.
Submission
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Send the letters through certified mail at the current address provided on each credit bureau site. The FTC advises requesting a return receipt as proof of the delivery date. Proofread each letter to ensure the customized information is correct, and make sure the right letters go into the proper envelopes. Bureaus can ignore disputes sent to them in error or referring to mistakes on a competitor's report because they are "irrelevant" under the FCRA.
Time Frame
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Credit bureaus generally respond within 45 days, which gives them time to investigate and change their reports accordingly. They send a letter outlining dispute results and free credit report copies showing the appropriate deletions and corrections. New errors may happen any time, so the Wall Street Journal advises splitting free credit report orders into one report every four months. Customize and use the original form letter to address any new disputes.
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