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Credit Repair Do-it-Yourself without Bankruptcy
Write to each of the three major credit reporting agencies, at the addresses posted on their web sites, or available from the 800 numbers below:
Note: The credit bureaus change their addresses from time to time. Check their web sites or their 800 numbers for the most current addresses. In your request letter, you should provide:
If you fail to include any of these, you will receive a letter back from the credit reporting agency request that it be included. The credit bureau may request additional information anyway, and you should provide it as quickly as possible. Within 10 to 30 days you should receive a copy of your credit report from each of the agencies. 12. Dispute Incorrect Personal Information It is critical to first review all the personally identifying information in the credit reports, including:
Note whether this information is in any way inaccurate, incorrect, erroneous, misleading, or outdated. You must dispute these mistakes first, because this data is used to help verify the credit items on your credit report. Frequently, when an item not yours appears on your report, it gets there and stays there because it somehow matches up with some incorrect personally identifying information. By disputing these first, other erroneous items will no longer match your file. So, for each credit report, carefully note any records which you believe to be inaccurate, incorrect, erroneous, misleading, or outdated. It does not matter whether you think the information is negative, neutral, or even positive, if it is in anyway erroneous it should be removed. 13. Rank Questionable Items Once you have noted each questionable item, you should rank them. After erroneous personal data, rank the most damaging information first, followed by the next most damaging, etc., until those items which are neutral. Do this for each credit report, as they may not all have the same questionable information on them. The following ordered list should give you an idea of the significance of erroneous or derogatory information:
You will find that some of the questionable information is duplicated on one or both the other credit reports, but not all will be. Pay particular attention to the addresses listed, and dispute all but your current address first, it will ease having other erroneous, misleading, or outdated information removed. In any case, you should send a dispute letter to each of the three major credit reporting agencies, for each questionable item, whether it appears on their report or not. This is to assure that the same questionable item will not be removed from one report only to reappear later on another. 14. Requesting Corrections It is very important that each questionable item, except for erroneous personal data, is dealt with individually. If you attempt to have the credit reporting agency correct several items at once, it will be easier for the agency to claim that your request is frivolous or irrelevant. They may attempt to bully you into believing that your request is frivolous, or even unlawful. But the credit reporting agencies are required to assume that all disputes are bona fide, unless there is clear and convincing evidence that it is not. A blanket dispute (i.e. all information is challenged) may be considered evidence that the dispute is frivolous, if you fail to provide any allegations concerning specific items in your file. You should challenge each item individually, and not give in to them if they send ominous letters warning of dire consequences if your claims are frivolous. If the information they are reporting is inaccurate, incorrect, erroneous, misleading or outdated, they will have to remove it upon investigation. The specific law on disputes is found in United States Code, Title 15, Chapter 41, Subchapter III, Section 1681i, entitled Procedure in case of disputed accuracy. You will now write a letter to each credit reporting agency, requesting an investigation to verify the status of the most damaging item reported by any of the agencies, and asking that they correct the information. In general, it is important that the letter not look like a form letter, so consider handwriting it. Also, keep in mind that absent a clear statement that the accuracy or completeness of specific information is "disputed" or "challenged", your letter might not be construed as an exercise of rights under the Fair Credit Reporting Act (FCRA). Specific words to use include: erroneous, outdated, misleading, or unverifiable. Mere explanation of the reason a debt was not paid might not constitute a dispute and does not require the credit reporting agency to re-investigate or accept your written dispute statements. Explanations are not useful, but disputes get results. Once the credit reporting agency has received your dispute letter, they are obligated to investigate. This obligation is not contingent upon you having been denied credit. Note the addresses to which the credit reports direct you for disputes. They will not be the same as the addresses you used to obtain the credit report. Again, write to each of these three:
Note: The credit bureaus change their addresses and phone numbers from time to time. Check their web sites or their 800 numbers for the most current information. Follow the format in Sample Letter 2, and send it in. If you are dealing with excessive, unauthorized credit inquiries, follow the format in Sample Letter 2.5. Follow the important mailing and record keeping instructions. Within 10 to 30 days you will receive a letter from each credit reporting agency telling you that they are investigating your dispute. Within another 10 to 30 days, you should receive an updated credit report, indicating that the disputed item has been removed. As soon as a credit reporting agency provides you with an updated credit report showing that the item has been deleted, you should send another dispute letter, in regards to the next most damaging item. Repeat this process, until each and every questionable item has been deleted. In some cases, the credit reporting agencies are slow to respond to your dispute. If this should occur, you may choose to write another letter, strongly reminding the credit bureau of their obligations under the law. You may follow the format in Sample Letter 3, and be sure to again send it registered, without return-receipt or insurance. Again, carefully follow the important mailing and record keeping instructions. Should the credit reporting agencies just flat out ignore even that letter, you may follow the format in Sample Letter 4, but tailor it specifically to the circumstances in which you now find yourself. Be prepared to contact the FTC to file your formal complaint, should even this letter not elicit a response. At this point, you should seriously consider retaining an attorney, as willful failure to comply may subject the credit reporting agencies to liability. 15. The Consumer Statement You have a right to add a consumer statement, up to 100 words, to any item on your credit report. This can be helpful in circumstances which were truly exceptional, where a simple and honest explanation will take the "sting" off the item, and when there are just a few negative items among a long list of neutral and positive items. Example of helpful consumer statements include:
It is important that in each case you also add that the problem is now resolved, and will not continue to affect your finances. The key is, this was an exceptional occurrence, and you have done your best to take care of things, and at the time, these creditors could not be taken care of properly, but everything is back to normal now. Recite the simple facts, and make sure you can prove them, and these negative items are unlikely to be of much significance. Your statement should be "just the facts", leave out any emotional or derogatory comments, and you will often be viewed as reasonable and the item given less weight. Iron Mill News Service Credit News
Note: Send all debt settlement letters via "Certified Mail return receipt requested" and keep a copy for your records and send one copy to the original creditor. |