CONSUMER CREDIT REPAIR
The three consumer credit reporting agencies, Experian (formerly TRW), Trans Union, and CBI/Equifax, do their best to present an accurate credit profile. However, mistakes happen. It is when mistakes happen that you, the Consumer, must take action to correct the errors or risk paying a higher interest rate.
The following will explain the 3 Simple Steps to deleting errors that may appear on your consumer credit report.
Step 1 – Obtain a Copy of Your Credit Report
Order a copy of your credit report from each credit bureau. That means you need to order 3 reports. This is critical. By obtaining a copy of your report, you will have the information necessary to determine if there are errors. If you are married, it is important to obtain a report for each spouse, individually. To obtain a copy of your Consumer Credit Report, please contact each individual agency listed below:
Experian National Consumer Assistance Center
P. O. Box 2104
Allen, TX 75013-2104
(888)397-3742
You can obtain a copy by calling, writing or on the Internet.
Trans Union Corporation
Consumer Disclosure Center
P. O. Box 390
Springfield, PA 19064-0390
(800)888-4213
You can obtain a copy by calling, writing or on the Internet.
CBI/Equifax Information Service Center
P. O. Box 740241
Atlanta, GA 30374-0241
(800)997-2493
You can obtain a copy by calling, writing or on the Internet.
Depending on which state you live in will determine if there is a fee charged for obtaining a copy of your credit report. In most states the charge will be $8.00. If you were denied credit within the past 30 days, you can obtain a Free copy of your credit report from the Agency that prepared the report for the creditor.
If you decide to write to the bureaus to obtain your report, please include the following information in your request letter:
Full Name (including Jr., Sr. II, III)
Social Security Number
Current and Previous Address over the past two years
Date of Birth
Signature
Home Telephone number
The following is a sample request form:
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Date Insert Address of One Credit Bureau listed above Dear Representative: Please send me a copy of by personal credit report. I am in the process of preparing to purchase/refinance a home and need my report immediately. Enclosed is my check for $______ to cover the cost of the report. The following is my personal information: Your First, Middle, Last Name Jr./Sr./III Street Address and Apt./Unit # City, State Zip Home Phone Number Social Security # Date of Birth Previous Address for the past two years. Thank you for your prompt attention to my request. Sincerely, Sign Your Name |
Step 2 – Dispute, Dispute, Dispute – All Errors!
Once you receive your report, it is important to review the report for errors right away. If there are derogatory items on your report they will fall into three categories: Late Payments, Collection and Legal Items (such as judgements, tax liens, and bankruptcy).
After you have identified which items should be disputed, communicate in writing to the bureau those items which you are disputing. It is critical that you keep a copy of all correspondence to and from each credit bureau.
When you mail your letters to the credit bureaus, it is highly recommended that you send it Certified with Return Receipt requested. This accomplishes two goals: The first is to indicate the importance of the letter. The second is to provide evidence of the date the letter was received at the credit bureau.
Once the credit bureau has received your dispute letter, they will notify the creditors and investigate the claim. The creditor has a reasonable time to respond to the credit bureau either confirming or denying the dispute. Generally, 30 calendar days is considered “Reasonable.” If the creditor does not respond within a “reasonable” time, then the disputed item is removed from your credit report.
The following are the addresses to dispute derogatory items to the credit bureaus:
Experian National Consumer Assistance Center
P. O. Box 2104
Allen, TX 75013-2104
Trans Union Corporation
Consumer Disclosure Center
P. O. Box 390
Springfield, PA 19064-0390
CBI/Equifax Information Service Center
P. O. Box 740241
Atlanta, GA 30374-0241
The following sample letter has been carefully worded. It is up to you to customize it to your specific situation. We recommend that you follow the format of the letter fairly closely.
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Your First, Middle, Last Name Street Address City, State Zip Code Home Phone # Today’s Date Certified Mail Credit Bureau Name Street Address City, State Zip Dear Customer Relations: Date Report Obtained: (Insert Date of Report) I recently received a copy of my credit report from your agency. Upon review of my report, I noticed there were items that are reported incorrectly. To my best recollection, I have never been late or in default on these accounts. It is important that my credit profile accurately reflect my true credit standing. The errors found in my report need to be corrected so that future creditors may perform a proper evaluation of my credit worthiness. It is my understanding that under the Fair Credit Reporting Act section 611(a) I have the right to dispute and request a reinvestigation of the accounts listed below. Please send me the names and addresses of the person you have contacted so I may monitor your re-investigation. Subscriber Subscriber # Account # Dispute Bank Charge 1234Y94XQ 4221-3434 I was not late paying on this account. Big Mortgage 22W5767TZ 9375-21474 When the loan was transferred, they failed to notify me. The payment was mailed on time but was forwarded late. Tiny’s Collection 39TY83309 1234-5678 My insurance company paid the doctor for the debt that Tiny’s is collecting. Please delete. Credit Bureau Name Today’s Date Page 2 My personal identification is listed below: Social Security Number: Date of Birth: I will assume that 30 days from your receipt of this letter will constitute a “reasonable” time to complete your re-investigation. I expect to receive an update by (insert date 32 days from today). Pursuant to the Fair Credit Reporting Act section 611(d) please furnish notification to me of the items that have been deleted. Also, please forward an updated copy of my credit file. If this matter is not resolved, I plan to file a formal complaint with the Federal Trade Commission and I will exercise my rights under Sections 616, 617, and 618. Sincerely, Sign Your Name Type or Print Your Name |
When you receive the results of the re-investigation, immediately review the changes and the updated report. If certain items that you disputed still remain on your credit report, you have three options. The first is to write to the credit bureau again requesting another re-investigation. Do not exercise the option excessively as your request may be denied as “frivolous.” The second option is to contact the creditor directly and explain why they should correct the error. Use a letter similar to the one provided above. The third option is to contact the Federal Trade Commission and file a complaint.
The credit bureaus may not have a complete profile of your past and present credit history. This may be due to regional differences, or that the creditor may report to one bureau, or that the creditor may not report your credit history at all.
If some of your positive credit history is not found on your report, you can write to the bureaus and request the information to be added. The bureaus are not required to add information that may be from a creditor that is not a subscriber to the bureau. If they are willing to add the information, they will need to verify your credit history with the creditor.
Use the following letter to add your positive credit history to your credit bureau report.
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First, Middle Last Name Street Address City, State Zip Code Home Phone # Today’s Date Certified Mail Credit Bureau Name Street Address City, State Zip Dear Customer Relations: Upon review of my credit report, I noticed that not all of my good credit history was reflected in my credit profile. Please verify my credit history with the following creditor and add this to my credit profile. Creditor Name______________________ Address:___________________________ My Account #:______________________ Amount Borrowed:___________________ Date Paid:__________________________ Thank you for presenting an accurate profile of my complete credit history. Please send me a copy of my credit report after you have completed your investigation with this creditor. Sincerely, Sign Your Name Print Your Name |
A Special Discussion About Collection Accounts
When you find that you have a collection account that appears on your credit profile, there are three steps to take in working towards a resolution.
1st - Contact the Collection Agency
Dispute the debt and ask for documentation or proof that the debt was incurred. Follow the same format as directed above by presenting your dispute in writing. Proper documentation is critical.
If the debt is accurate but you are disputing the amount owed, the collection agency may be willing to settle for less. Again, obtain everything in writing before paying. If you agree to pay the disputed account, request that upon payment the account be “Deleted” from your credit report. Otherwise, the collection agency will show the collection account as a “Paid Collection.”
2nd – Dispute the Debt with the Creditor
If the collection agency is unwilling to resolve the dispute, contact the creditor that originally transferred their claim to the collection agency. Dispute the debt and ask for evidence of the debt. Do this in writing. If you reach an agreement with the creditor, make certain that the creditor contact the collection agency to “Delete” the account from the credit bureau records.
3rd – Contact the Federal Trade Commission
When all else fails, contact the Federal Trade Commission and file a formal complaint. This federal agency is responsible for ensuring that collection agencies adhere to Federal laws.
The information contained in this web site regarding Consumer Credit Repair is intended for informational purposes only. There is no fee paid by the recipient of this information as it is being provided as a public service. This is a general guide. Sky & Rachel.com. is not an authority on any specific situation regarding the legal rights of any person and should not be relied on as such. If you have a problem, there is no substitution for hiring competent legal counsel to represent you in matters that are of a legal nature. Sky & Rachel.com. disclaims any responsibility, liability or loss suffered by anyone as a result of any inaccuracies in the contents hereof or the application of such information to any individual situation. By visiting this web site and by using the information contained herein, the user and any subsequent user of the information contained herein agrees to release Sky & Rachel.com. from any responsibility, liability or claims and any loss or claims experienced therefrom, no matter how arising.
It is recommended that you consult an attorney whenever you are faced with a situation materially affecting your legal rights.