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How to Prepare Dispute Letters

If you have identified inaccurate or erroneous information on your credit report, you may be wondering what types of steps you need to take in order to correct the problem.  Unfortunately, in this day and age, the majority of credit reports maintained by the major credit reporting agencies have been found to contain inaccurate information that negatively impacts a person’s credit history and credit score.

The primary instruments that you will utilize in dealing with erroneous information in your credit reports are what are known as dispute letters.  Dispute letters are common tools that are used to deal with erroneous information contained in credit reports and to work to deal with bad credit that arises from this incorrect information contained in a credit report.

Initial

Once you have identified erroneous or inaccurate information within your credit report, you need to write what is known as an Initial Letter to the credit reporting agency.  In the Initial Letter, you need to specifically identify what the problem is within your credit report.  You need to explain why it is an inaccurate or incorrect entry on your credit report.  Finally, you need to provide the credit reporting agency with any supporting documentation that provides a foundation for your claim.

Following the receipt of this Initial Letter from you, the credit reporting agency in questions has 30 days to rectify the problem or to write to you and explain while the credit reporting agency does not believe that the entry on your credit report is incorrect or in error.

Second

If you do not hear from the credit reporting agency after you submit the Initial Letter, you will want to write a Second Letter.  The follow up letter can recap the fact that the Initial Letter was sent and that the credit reporting agency appears to have taken no action.  You can make a demand on them for immediate action or that you will take the matter up with the Federal Trade Commission or the FTC.  You can also indicate that you will take other legal action against the credit reporting agency as allowed by law.

Final

If you find that the credit reporting agency has taken no action whatsoever after you have send the Initial Letter and the Second Letter, the Final Letter from you can be sent.  As long as you can document the sending of the Initial Letter and the Second Letter to the credit reporting agency, you can make demand for the automatic removal of the contested entries on the credit report. 

You and entitled to have these offending entries removed automatically because the credit reporting agency did not take action in regard to your complaint as required by law within the time set out by statute and regulation.

 By following these steps and sending these letters you will be able to obtain relief from the FTC if the credit reporting agency does not act as it is supposed to do when you have made a bona fide complaint regarding an entry or entries.