How to Dispute Negative Items on Your Credit Report

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By johngriggs
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If you want to dispute negative information on your credit report, follow the steps below.

Difficulty: Moderate

Instructions

Things You'll Need:

A Phone
A Printer
Lots of Patience and Persistence

Step 1

Order a copy of your credit reports from each of the major credit bureaus. The major credit bureaus are Experian, Transunion, and Equifax. You are entitled to one free credit report from each of them once a year. They can be ordered from Annual Credit Report at 1-877-322-8228.
Step 2

When your credit report arrives, decide which items you want to dispute. Follow the instructions that the credit bureau provides. Provide a brief explanation as to why you are disputing the negative entry. Mail in your dispute.
Step 3

The credit bureau by law has 30 days to investigate the tradeline you are questioning. Wait for the results to come back. You will then get correspondence back from the credit bureau. They will either inform you that the negative item has been removed or that it has been "verified". If the negative item comes back as "verified", proceed to step 4.
Step 4

Write the bank, creditor, or collection agency that is reporting the negative entry in your credit report. Ask them to verify that the debt is yours, ask for a copy of the agreement that you had with them, and ask them how they calculated the amount owed. Inform them they need to either prove that you owe this debt, or remove the entry from your credit report. Mail your letter to them. The creditor has 30 days to respond.
Step 5

If the creditor responded that they are removing the negative tradeline from your credit report, congratulations! If they do not respond in 30 days, send a follow up letter indicating that they are reporting invalidated information to the credit bureau. At this point, you can threaten to write the Federal Trade Commission, and threaten legal action if they don't comply. If the creditor did respond to your note, proceed to step 6.
Step 6

If the creditor did provide proof that you owe the debt, examine it carefully to see if there are any discrepancies. For example, if an apartment complex responds that you owe $300 for a cleaning bill, but does not provide a copy of a receipt for the services provided you should write back and ask them for the missing information. Write the creditor back and explain that the proof that they provided was insufficient. Then ask the creditor to provide the information you requested, or remove the entry from your credit report. Kindly remind them they are in violation of Fair Debt Collection Practices Act if they don't comply. If you wish, you can threaten to file a lawsuit as well.
Step 7

After a debt comes back "verified" from the credit bureau, contact the credit bureau and ask how they verified the debt. This is called asking for the "method of verification". Most credit bureaus do not make a thorough investigation due to costs and the large amount of disputes they receive. You can use this against the credit bureaus if they report your debt without sufficient proof.