How to Use the Law to Defeat & Remove Credit Card Debt

The federal government enacted a law called the Fair Credit Reporting Act (FCRA). Part of this law is, specifically, to allow consumers the ability to dispute negative items on credit reports.

There are three credit reporting agencies: Transunion, Experian and Equifax. These three reporting agencies house all consumers credit histories and you will need to dispute your credit card debt with all three agencies separately.

Even small errors or negative entries can, drastically, reduce your credit score; therefore, it is very important to review your credit report regularly and use the law to your advantage in repairing, removing or deleting negative information.

The law is designed so both the consumer and the creditor play a role in the determination of whether an item is, legally, removed from your credit report. Because of this, it is possible to remove items from your credit report that are truly your negative items.

Instructions

1




Use the green highligher

Review your credit report carefully. Highlight any errors you may find with the green highlighter. You want to check monthly payments, balances, late payments, type of accounts and the reporting dates.

2




Use the yellow highlighter

Take the yellow highlighter and again review your credit report. This time highlight every item that is negative. Look for collection accounts, charged-off accounts and judgments.

3




Create a list with items to dispute

Make a list of both the incorrect items and the negative items. This list will be included on three separate letters to each of the credit reporting agencies.

4




Write your letter

Write a brief letter to each of the three credit reporting agencies. The letter should include your name, address, social security number and date of birth. Include a copy of your drivers license to prove you are the one writing the letter. You may black out your drivers license number if you feel more comfortable doing so.

Begin your letter with a phrase such as this: "I am writing to dispute items on my credit report. Please investigate each item and remove or correct within 30 days of receipt of my letter per the FCRA."

List the items and include the creditor name, the account number, the amount owed and put a short reason why you are disputing. This could be reasons such as: not mine, incorrect information, wrong balance, never late.

End your letter with a polite, yet firm statement such as: "Please complete the investigation of these items within the 30 days given by the FTC and the FCRA."

Do not make the letter long and drawn out. The credit agencies receive hundreds of dispute daily and are not interested in long letters.

5




Mail your letter

Mail the letter via USPS certified, return receipt. This is the only proof you will have of the 30-day time line given to you, as your right, by the federal government. Even if you have a legitimate credit card debt on your credit report, if the creditor fails to respond to the credit agency within 30 days, the agency must remove the item from your credit report. This is the law.

6




Deletions or not

Review the letter that will come back to you from the credit agency. The credit agency is allowed 30 days to investigate and five days to respond to you. Expect the letter within 40 days from the date the credit agency received your dispute. The letter will list each item you disputed and inform you whether the item was updated, confirmed or deleted.

An updated item is when the creditor corrected incorrect information. A confirmed response is when the creditor confirms the information they are reporting is correct. A deletion usually occurs because the creditor failed to prove the debt is theirs or they failed to respond within the 30 days given by law.

7

Evaluate the responses given and then judge your next step. You can, immediately, send out a repeat dispute if you still feel an item should not be listed. If so, try to include any evidence you have to support the error. If you are using the law to try to remove debt that is yours, you should allow more time to elapse before sending out a repeat dispute.