A credit dispute letter is a notice which is sent to a creditor or credit rating agency when a financial debt is believed to be in error for any reason. If any problems are noted on any of the 3 main credit reports for a person then these errors must be disputed as soon as possible. Problems could have a drastic impact on the credit rating of the person, and their ability to qualify for credit in all forms.
As soon as the credit agency that reports the incorrect details receives in writing a note of dispute regarding a particular financial debt then the company must investigate the debt and make certain that the information is accurate and up to date. If the debt can not be confirmed within the 30 day time frame provided by the law for this purpose then the debt should be removed from the credit report of the individual.
If a credit company gets a credit dispute letter and the debt disputed is not verified or taken out in the allowable time then the credit agency can encounter civil action and monetary charges. It is more common than most people think to find a number of incorrect entries on a credit report. It is also typical for companies to include debts that are not legit or verified in some cases. The federal laws protecting customers outline the penalties that the credit agency may experience.
In some cases mailing a letter of dispute regarding a debt may lead to the company being unable to verify the debt. This is especially true if the creditor is audited. The law maintains that the creditor must have a copy of the original debt documents that includes the signature of the debtor, and if this can not be produced then the debt might not be collected on or listed in a credit report in most cases.
If this happens the common result is a higher credit rating because old debts are not dragging this score down.
As soon as the credit agency that reports the incorrect details receives in writing a note of dispute regarding a particular financial debt then the company must investigate the debt and make certain that the information is accurate and up to date. If the debt can not be confirmed within the 30 day time frame provided by the law for this purpose then the debt should be removed from the credit report of the individual.
If a credit company gets a credit dispute letter and the debt disputed is not verified or taken out in the allowable time then the credit agency can encounter civil action and monetary charges. It is more common than most people think to find a number of incorrect entries on a credit report. It is also typical for companies to include debts that are not legit or verified in some cases. The federal laws protecting customers outline the penalties that the credit agency may experience.
In some cases mailing a letter of dispute regarding a debt may lead to the company being unable to verify the debt. This is especially true if the creditor is audited. The law maintains that the creditor must have a copy of the original debt documents that includes the signature of the debtor, and if this can not be produced then the debt might not be collected on or listed in a credit report in most cases.
If this happens the common result is a higher credit rating because old debts are not dragging this score down.
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Mailing a a letter to dispute credit for older debts may lead to these financial obligations being taken from the credit report simply because they can not be verified in a timely manner.
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