A Credit Dispute Letter Could Improve Credit Scores In Some Instances

A credit dispute letter is a letter which is mailed to a creditor or credit rating agency when a financial debt is believed to be in error for any reason. If any mistakes are observed on any of the three main credit reports for an individual then these problems need to be disputed as soon as possible. Mistakes can have a drastic result on the credit rating of the individual, and their capability to qualify for credit in all forms.

Once the credit agency that reports the incorrect details receives in writing a notice of dispute regarding a particular debt then the agency should check out the debt and be sure that the details are accurate and updated. If the debt can’t be verified within a limited amount of time (30 day time at the time of this writing), the by law the debt must be removed from the credit report of the individual.

If a credit agency receives a credit dispute letter and the debt questioned is not confirmed or removed in the allowable time then the credit agency can face civil action and monetary fees. It is more prevalent than most people think to find a number of incorrect entries on a credit report. It is also common for companies to include debts that are not legitimate or confirmed in some cases. The federal regulations protecting consumers outline the penalties that the credit agency may experience.

In some instances mailing a letter of dispute concerning a financial debt may result in the company being unable to verify the debt. This is especially true if the creditor is audited. The law maintains that the creditor should have a copy of the original debt documents that includes the signature of the borrower, and if this can not be produced then the debt might not be collected on or listed in a credit file in most cases.

Should this happen the common outcome is a higher credit rating because old debts are not dragging this score down.

Mailing a credit dispute letter for older debts may result in these debts being taken from the credit report simply because they can not be verified quickly.

Learn more: Fair Debt Collection Practices Act (FDCPA)

27 Replies to “A Credit Dispute Letter Could Improve Credit Scores In Some Instances”

  1. Insightful directions for consumers! Credit agencies are so big, I had no idea such an error was common, let alone happened. It is good to be informed on this matter and helpful to know that once a credit dispute letter is sent the credit agency, the agency has to act on the situation or may face consequences – something will actually be done about it!

  2. Human errors are inevitable, thus, having a credit dispute is something that we can expect to happen. I just hope people working in credit agencies will always take their time to double check (even triple check) things to avoid this. This article is also a good reminder to creditors to not be complacent and keep track of their financial statements at all times.

  3. The article does provide a quick look at how debt is handled and managed. It could be used to further bring attention to the proper use of a Credit Dispute Letter and to this extent it is certainly welcome.
    People interested to know can use the article as a reference point to start out.

  4. This article sure is an eye-opener for both parties (bank and credit card holders). For Card holders to properly monitor their accounts and for the bank to do their job properly to avoid future issues.

  5. Credit card holders should be aware of their financial statements and the importance of their credit standing. This article is very informative to all credit card holders (especially the ones who have little idea on how credit card banking works) and likewise a wake-up call to banks to do their job.

  6. Credit card holders should also keep copies and records of all correspondence so that they can attach these to their letter of dispute if they will need to make one soon. It’s also really important to keep track of your transactions so that you would not be surprised if your debt collector calls you.

  7. I wish they taught this at school, the kind of thing you need to learn in life. Anyhow thanks for the information cheers.

  8. Great article on consumer rights and the tools we can use to properly dispute issues with credit agencies! This is the kind of information which all consumers should be aware of as it affects most of us in our daily lives, I will definitely be sharing this with friends and family.

  9. A nice and informative write up for creating awareness and portraying this less known field of credit disputes. This is surely an innovative way for managing credit disputes and increasing credit score.

  10. Up until now I didn’t know this was a possibility. I have seen many people verbally dispute their credit rating without doing much else. I’m glad there’s something that can be done to overturn such situations. Thank you for the article.

  11. I currently don’t have a credit card but my sister has. I remember her having a dispute with her credit rating before and she was really worried. Thank you for this informative article. I will keep this in mind for future reference since I’m planning to get a credit card soon.

  12. For ten years now, I have been using the same credit cards and do not dispute the bills I’m getting although I sometimes feel that I’m being overcharged. I’ll seriously look into making a credit dispute letter to improve my credit standing. Thank you very much for this article.

  13. Thank you for this article! I think it is very important to inform people about such things as credit dispute letter. People have to know about the means of protection against companies that try to take advantage of them. It also will make credit agencies aware of the possible mistakes in the credit reports, and remind them of their responsibility to correct those mistakes.

  14. Credit dispute is an important article. Thank you!
    I am an engineering student and I have credit cards and to be very honest I have no knowledge about this. I know very little about this and thanks for giving us more information about credit dispute letter. I will share this to others in order to expand information.

  15. This is a very informative article. Thank you!
    I have credit cards and to be very honest I have no knowledge about this. I know very little about this and thanks for giving us more information about credit dispute letter. I’m excited to share this to my husband.

  16. Thank you very much for this useful information! Every credit card’s owner must be informed about this possible problem. Sharing this article is an act of goodwill!

  17. I had little to no knowledge about the importance of credit dispute letters. If I ever face financial debt in the future, I will make sure to refer to this article! I know some friends who are facing credit troubles. I’ll show this to them, and hopefully they can dispute any problems found. It might help them get some debt removed from their credit reports.

    1. I actually had a friend that faced this kind of situation. Good thing I showed this to her, it really helped in settling the situation with her bank. Cheers to the author on this informative article!

  18. Didn’t know until today that a credit dispute letter can make a difference in improving a person’s credit score. Thanks a lot for enlightening us on this matter. I should share this to my friends!

  19. Thank you so much for this very informative article! I am planning to apply for a credit card soon and I didn’t know until now that this could actually happen to anyone owning a credit card. I know now what a credit dispute letter is, and I now have an idea of what to do if I encounter a credit dispute.

  20. This article actually shed a light to what Credit Dispute Letter means and also, this is very beneficial to people who is having or into credits.

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