Great news – it is free to dispute any item on your credit score! Both the credit reporting company and the information provider (the person, company, or organization that provides information about you to a credit reporting company) are responsible for correcting inaccurate or incomplete information in your report. All you need to do is go through the step by step process to dispute issues on your credit report.
Step 1: Write to the credit reporting agency that the information they have on file is incorrect. Create copies of whatever information that you have to prove that the information they have on you is incorrect and send it in with your letter.
Provide your full name, address, and all relative information in your letter and make sure that you list each item that you believe is incorrect. Please ask that each item be corrected or removed and ask for confirmation. Keep copes of all letters that you send.
I also encourage you to use the dispute letter example as a model for your letters, and dispute every negative item on your report. The wording on the enclosed letter puts the responsibility of proving your rights were not violated on the credit bureau.
In other words, you aren’t lying about the item being yours, you’re simply asking the credit bureau to ensure the information was accurately reported and the reporting company has all the documentation they are supposed to have.
All of the credit reporting agencies have 30 days to look into your claims. They will respond to you within this time frame and let you know what they found by either updating your report or providing information that shows the reporting is correct.
Once the provider of information receives notice of the dispute from companies who report credit, they will investigate and review the information. The results will be reported back to the companies who report credit. If the investigation reveals that the disputed information is inaccurate, the information provider has to notify the nationwide credit reporting companies so they can correct it in your file.
Also, if the reporting company doesn’t respond in time, the item is automatically removed and can’t go back on your credit without proof that it is correct.
That creates a real loophole for consumers. Just as it is often considered smart to request a court date for a traffic ticket in case the officer doesn’t show up, it makes sense to dispute negative items no matter the circumstance. If there’s no response, the item is deleted whether it’s properly reported or not.
If the investigation isn’t able to be resolved the dispute with you and the credit companies, you will be able to ask for a statement of dispute and have it included in your file for future reports. You may also be able to ask the reporting companies to hand over your statement so that anyone who did receive a statement can also get your most up to date report. You’ll probably have to pay for this service.
Step 2: If you inform the creditor and other providers, in writing, that you have disputed an item make sure to include copies (do not send originals) of documents that will support your side of the dispute. Many providers specify an address for disputes.
The provider who will report the items to the consumer reporting companies, it will have to include a notice of the dispute. If the information turns out to be invalid, the provider cannot report again.
You should also request all the documentation the reporter is required to have to collect the debt.
That can include, in part, the original signed agreement. The original contract terms. If the company reporting isn’t the original creditor, you can insist on any assignments, information about how much they bought the debt for, how much commission they are entitled to if the debt is collected, the amount of the alleged debt, the account number for the original creditor, date the debt was incurred, date it was charged off, if any insurance claim was made based on the charge off of the debt, and if any judgments exists based on the debt.
If the collections company doesn’t give you this documentation, it could stop their rights to collect the debt and report the debt to the credit bureaus.
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