A credit dispute letter is a notice which is sent to a creditor or credit reporting company when a debt is believed to be in error for any reason. If any mistakes are observed on any of the 3 major credit reports for a person then these mistakes need to be disputed as soon as possible. Problems could have a drastic result on the credit rating of the individual, and their capability to qualify for credit in any form.
Once the credit agency that reports the incorrect details receives in writing a note of dispute concerning a particular debt then the company should check out the debt and make certain that the details are accurate and up to date. If the debt can not be verified within the 30 day time limit provided by the law for this purpose then the debt should be removed from the credit report of the individual.
If a credit agency gets a credit dispute letter and the debt questioned is not confirmed or eliminated in the allowable period then the credit agency can face civil action and monetary charges. It is more usual than most people think to find a number of incorrect entries on a credit report. It is also common for agencies to include debts that are not legit or confirmed in some instances. The federal regulations protecting consumers outline the charges that the credit company may encounter.
In some instances sending a letter of dispute regarding a debt may lead to the company being unable to check the debt. This is also true if the creditor is audited. The law maintains that the creditor must keep a copy of the original financial debt documents that includes the signature of the borrower, and if this can not be produced then the debt may not be collected on or listed in a credit report in most cases.
Should this happen the common outcome is a higher credit score because old debts are not dragging this rating down.
Once the credit agency that reports the incorrect details receives in writing a note of dispute concerning a particular debt then the company should check out the debt and make certain that the details are accurate and up to date. If the debt can not be verified within the 30 day time limit provided by the law for this purpose then the debt should be removed from the credit report of the individual.
If a credit agency gets a credit dispute letter and the debt questioned is not confirmed or eliminated in the allowable period then the credit agency can face civil action and monetary charges. It is more usual than most people think to find a number of incorrect entries on a credit report. It is also common for agencies to include debts that are not legit or confirmed in some instances. The federal regulations protecting consumers outline the charges that the credit company may encounter.
In some instances sending a letter of dispute regarding a debt may lead to the company being unable to check the debt. This is also true if the creditor is audited. The law maintains that the creditor must keep a copy of the original financial debt documents that includes the signature of the borrower, and if this can not be produced then the debt may not be collected on or listed in a credit report in most cases.
Should this happen the common outcome is a higher credit score because old debts are not dragging this rating down.
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Giving a http://creditdisputeletterinfo.com for older debts may lead to these debts being removed from the credit report simply because they can not be verified quickly.
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