Credit Basics

Step #3: Dispute Mistakes

Use the information from your Credit Problems Worksheet that you plan to dispute. There are two ways to dispute wrong information:

1. Contact the lender, court or collection agency (furnisher) reporting it and ask it to investigate.

2. Contact the credit bureaus that have the information that is wrong and ask it to verify the information. There are advantages and disadvantages to both approaches.

Unless the information that is wrong is personal information (such as name, address, or social security number) you should probably start by disputing it with the furnisher. If a phone number is provided, you can call the furnisher. (Keep notes of your conversation.) If not, you can write to the address provided.

Tips for Writing Effective Dispute Letters

Whether you are writing to the furnisher or the credit bureau to dispute information on your credit report, here are some guidelines that can help make your dispute more effective:

1. Include your name, address, social security number, account number (if relevant) at the top of your letter so your file can quickly be found.

2. Write your letter by hand IF your writing is easy to read. Otherwise, type it.

3. Keep your letter very brief and to the point.

4. Describe exactly what is wrong and how it should be corrected.

5. Send your letter certified mail, return receipt requested.

6 . Include documentation if you have it – copies, not originals!

7. Keep a copy of any letters you send.

8. Keep a copy of any correspondence you receive.

Credit bureaus receive thousands of disputes every day. It’s especially important if you’re writing to the bureau to make your letter as clear as possible. Ask a trusted friend or relative to review it for you to make sure they understand it. Remember, the person at the other end of your dispute must be able to understand it in order to respond appropriately.

When the credit bureau or furnisher receives your dispute, it usually has thirty days to investigate and get back to you with the results. If you disputed the information through the credit bureau, it must provide you with a free credit report showing the updated information, if corrections were made.

If information is removed because you challenged it with the credit bureau, the bureau cannot add it back to your credit report without first certifying with the furnisher that it is correct. It also must notify you in writing first that it will be adding it back to your report.

What if you can’t resolve it?

If you believe the information is wrong and your dispute isn’t resolved, you have the right to add a 100-word statement to your credit file explaining your side of the story. This may not be very helpful, however, since most creditors won’t see or read that dispute. It’s much better to try to get the information corrected.

How?

First, if you think the credit bureau or furnisher didn’t properly investigate, you may want to contact them again (this time by phone if possible) and try to clarify the problem. If they still won’t correct it, you can file a complaint with the Federal Trade Commission at www.ftc.gov and you may want to talk with a consumer law attorney for help.

Sample Dispute Letter

Carla Consumer
123 Main Street
Anytown USA 44444

Social security number: 111-11-1111

Date: February 29, 2006

I am writing to dispute two mistakes on my credit report:
• Acct. #12345 Big Bank: This account is not mine. I don’t have any accounts with that lender.
• Acct. #34567 Auto Finance Co. This account incorrectly shows a balance. I paid it off over a year ago. Please update my file to show a zero balance.

Thank you in advance for your efforts to clear these up.
Sincerely,
Carla Consumer

Worksheet for Tracking Disputes

Instructions: Fill out a separate row for each dispute you file. In other words, if you dispute the same item with Experian and Trans Union, fill out a separate row for each of those disputes.