Your consumer credit file is one of the most important aspects of your financial life because lenders see this information when deciding whether to offer you a new loan. Approximately 80 percent of consumer credit reports contain mistakes, and 25 percent contain inaccuracies serious enough that the consumer is denied credit. The Fair Credit Reporting Act (FCRA) and Fair Debt Collection Practices Act (FDCPA) give consumers the right to challenge incomplete, inaccurate or misleading information in their credit files.
Instructions
1 Obtain a copy of your credit report from the three credit reporting agencies: Experian, TransUnion and Equifax. Review your reports for any inaccurate, incomplete or misleading account information. This includes any late payments, charge-offs, collections, repossessions, foreclosures, judgments, public records and bankruptcies. Check that all information on every account or "tradeline" listed is correct and note any tradelines that show discrepancies.
2 Type a letter to the credit bureau asking it to "verify" the account information for any tradeline with errors or discrepancies. You can find a examples of verification letters on many consumer credit forums. (See Resources below.)
3 With the letter, include your full name, address, Social Security number and credit file number (if available), as well as two proofs of your current address. Type your signature in italic font instead of signing the letter by hand. Also, do not provide your social security number, copy of your driver license or other identification with correspondence to original creditors or collection agencies. Unscrupulous collection agencies have been known to fabricate or forge account documents using newly provided signatures or personal information if they are unable to produce the originals. If a creditor or collection agency cannot validate your account using the information it has listed on your credit file, it must delete the tradeline.
4 Send the verification letter(s) to the credit bureau via Certified Mail, Return Receipt requested. Keep your postage receipt and the tracking number for each letter.
5 Once the credit bureau receives your letter, you will receive a green return receipt card in the mail from the post office. Mark the receipt date on your calendar.
6 Wait 33 days from the date the credit bureau received your letter. (This allows for the 30 days the credit bureau has to respond to your letter, plus a few extra days for mail time.) If you receive a response from the credit bureau stating that the account information has been updated as requested, or that the tradeline has been deleted, congratulations. You've fixed your own credit.
7 If you receive a response from the credit bureau stating that the account information has been verified as accurate, proceed to the section titled "Dispute with the Original Creditor or Collection Agency."
8 If you do not receive a response within 33 days, send a letter demanding that the credit bureau delete the tradelines because it was unable to verify the information within the time frame dictated by the FCRA.
9 Type a letter to the original creditor or collection agency asking it to "validate" the account by providing specific information proving the account is yours and that all information listed on the tradeline is accurate and complete. You can find a examples of validation letters on many consumer credit forums. (See Resources below.)
10 Include your full name and address, as well as the account number listed on the tradeline, with the letter. Type your signature in italic font instead of signing the letter by hand.
11 Send the validation letter(s) to the original creditor or collection agency via Certified Mail, Return Receipt requested. Keep your postage receipt and the tracking number for each letter.
12 Once the original creditor or collection agency receives your letter, you will receive the green return receipt card in the mail from the post office. Mark the receipt date on your calendar.
13 Wait 33 days from the date the original creditor or collection agency received your letter. (This allows for the 30 days the credit bureau has to respond to your letter, plus a few extra days for mail time.) If you receive a response from the original creditor or collection agency stating that the account information has been updated as requested, or that the tradeline has been deleted, congratulations! You've fixed your own credit.
14 If you do not receive a response from the original creditor or collection agency within 33 days, prepare another letter to the credit bureau demanding that the tradeline be deleted because the reporting agency failed to validate the account as required by law. Include a copy of your first letter to the credit bureau, the credit bureau's response to you (if any), your letter to the original creditor or collection agency, and your certified mail receipt.
15 On the same date, write a second letter to the original creditor or collection agency demanding that it delete the tradeline because it failed to validate the account as required by law. Include a copy of your first letter to the credit bureau, the credit bureau's response to you (if any), your letter to the original creditor or collection agency, and your certified mail receipt.
16 Repeat Steps 2 to 5 above for your letters to the credit bureau(s) and original creditor or collection agency.
17 If the credit bureaus, original creditors or collection agencies refuse to comply with the law, or are unresponsive, send one more letter requesting compliance with your request. Inform the recipients that you are prepared to pursue all remedies afforded to you under the law, including monetary damages of $1,000 per violation of the FCRA or FDCPA.
18 If the credit bureaus, original creditors or collection agencies still refuse to comply with the law, use the multiple letters, documentation and paper trail you have created to file a lawsuit in federal court for monetary damages under the FCRA and FDCPA.
