How to Dispute a Credit Card Judgment

A judgment is a legal court order, so it is a matter of public record. Judgments on your credit report can stay there for up to 10 years. They can also hurt your FICO score. The best way to have them removed is to pay the judgment and/or file a dispute. You have three options when you receive a dispute: do nothing, pay it off, or get it removed. The following will show you how to dispute a credit card judgment.

Instructions

1. Compose a dispute letter to each credit bureau. The goal of the letter is to challenge the accuracy of the judgment. This is also a common service of professional credit services.

2. Download or copy a dispute letter. See Resources for a link to an example. Follow the format. For addresses in the upper right hand side, insert the address for all three credit unions. You should have three separate letters. You can also write a written letter.

3. Create the body of the letter. The letter should dispute the validity of the judgment. By law, the credit bureau must remove the judgment from your report if they cannot verify the judgment. Follow up with salutations as shown in the example. Do not include any paperwork unless it substantiates your claims.

4. Send the letter by certified or registered mail. Contact each bureau or visit online for correct mailing address. The numbers for all three bureaus is: Experian, [phone]; TransUnion, [phone]; and Equifax, [phone]. See Resources for a website link.

5. Follow up. If you don't hear back from the bureaus within two months, follow up with another letter. Include the first letter for reference. Remember, it costs the credit bureau money to investigate a claim, so be persistent.

6. Contact the creditor directly. This is another option if the credit bureau verifies your judgment. Negotiate a settlement which removes the judgment from your credit report. Use your payment as leverage. Get all deals in writing and signed on official letterhead before making a payment.

References

• FTC: How to Dispute Credit Card Errors

Resources

• TransUnion
• Equifax
• Experian
• Sample Credit Dispute Letters