Wednesday 27 June 2012

What's A Credit Dispute Letter?

By Nelson Alter


What's a credit dispute letter? This is the letter that must be sent if there are any items that are questioned on the person's credit statement. There are many state and federal laws that relate to creditors and debt collection, and a few of these cover the procedure necessary to fix any problems or dispute a debt included on a credit report. The letter delivered to the credit reporting company should contain specific details about the individual in question and the debt being disputed or questioned.

Once the credit reporting agency gets notice that the individual is disputing a debt listed then the agency should check out the debt and confirm that it is valid. There is a specific period of time that this investigation must be completed in. if the credit rating agency fails to validate and verify the debt by the time line the rules offers then the agency may not be able to collect on the debt. If these procedures are not adopted then the debt collector may experience monetary charges and court action.

A credit dispute letter allows the credit company recognize that the person disputes the debt, and that the company should validate that the debt is authentic and is really owed by the individual. Whenever this notice is made the person must include their identifying information as well as all the important information on the debt being questioned.

This letter could also be mailed to creditors that are trying to collect on a debt that is disputed. The number of errors that appear in the credit reporting process can be high, and lots of people get accounts or information that is incorrect or mistaken in some way. Unless a listing is disputed the creditor or reporting firm may not know that there is incorrect data or the wrong account data.

The letter needs to state the details or accounts that are being disputed and why. It is a great idea to deliver this letter certified mail with a return receipt requested mainly because of the time limit. The deadline for the creditor or reporting agency begins the day that the letter is obtained disputing the debt, and the investigation should be completed within 30 days at the most.




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