You have seen it on television oh so many times. A company promises to completely wipe things off your credit report and have your credit score fully restored virtually overnight. Well, unfortunately, real life is nothing of the sort. So called “credit repair” companies have the same powers over your credit report as you do. The simple fact is that you cannot just remove a legitimate debt from your credit report, period. You have to pay the debt or settle with the debt collector for an agreed amount. There are ways, however, to remove debts that are not legitimate. You do not need anyone to assist you to accomplish these tasks.
If there are erroneous debts on your credit report, you have to write to them with a formal letter and explain the discrepancy in detail. Tell them why you believe the debt is not legitimate, and provide copies of any documents and receipts to strengthen your case. When the credit bureau receives your letter, either they will remove it immediately (unlikely), or they will start an investigation into your claim. It takes about 30 days for this process to complete, and even a lot earlier sometimes. If you have used the same name and address for years on end, then they will have no trouble locating records about you, thus it is easier for them to complete the investigation.
After they are done, they send you a letter of decision. That letter will tell you that they found the debt to be accurate (it stays on the credit report), or they cannot prove the validity of the debt and remove it from your credit report. This is just an example of one of the simpler scenarios in dealing with the credit bureaus. Sometimes, the process can get complicated; getting to know the ins and outs of the credit industry can go along way towards helping you beef up your FICO score.
By: J. Junior
Posts Tagged ‘Debt Collector’
The Credit Repair Myth
March 22nd, 2010Credit Repair Letters
October 20th, 2009
The best way to repair your credit is to write letters to the credit bureaus and collection agencies. These letters are commonly referred to as “Credit Repair Letters”. There are many different credit repair letters for many different situations. The most popular credit repair letters are dispute letters, debt validation letters, pay for delete letters and cease and desist letters.
Dispute Letters
Dispute letters are written to the credit bureaus to dispute an account, public record or personal information. Dispute letters are incredibly effective. There are many sample letters available on the internet; unfortunately most sites offer letters that state much more than they really need to. They quote the Fair Credit Reporting Act and other laws in hopes of “scaring the credit bureaus” into removing negative accounts. Some of the letters even make threats of litigation. All of this is unnecessary and will usually end up hurting your case more than it helps. Keep your dispute letters simple and to the point.
Debt Validation Letters
Debt Validation Letters are written to collection agencies to ask a collection agency to validate a debt. Debt validation is simply a consumer’s right to challenge a debt and/or receive written verification of a debt from a debt collector under the Federal Fair Debt Collection Practices Act (FDCPA).
Pay for Delete Letters
A pay for delete letter is usually written to a debt collector in hopes of negotiating to pay on an existing account in hopes of having the account removed or updated as positive on your credit report.
Cease & Desist Letters
A cease & desist letter can be sent to anyone, usually a debt collector, to request that they immediately stop contacting you. These letters should be sent certified, return receipt so that you have proof that it was received by the collector should you ever have to provide the evidence in court if they violate your federal rights.
By: Chane Steiner
