I would like to begin by providing this disclaimer: This is not professional nor is it legal advice, but rather, free advice provided in a public forum. While I am not a credit repair agency nor am I an attorney, I hold certifications as a Board Certified Credit Consultant and a Certified Credit Score Consultant.
If you reside in America, it’s likely that your credit report contains errors. These can be as minor as a misspelled name, which many assume is harmless. However, such errors can lead to incorrect identity verification questions due to the credit bureaus’ algorithms associating your name with another individual.
Similarly, addresses are often misspelled or entirely incorrect, potentially complicating future identity verifications.
More serious are inaccuracies in account information, which can arise from creditors confusing your file with someone else’s, reporting late payments, or closing accounts erroneously. Such negative information can have significant repercussions, including higher car insurance rates, difficulties renting an apartment, or even impacting your career.
Fortunately, there is a method to rectify these issues. I’ve experienced such errors myself, as there are many individuals named Scott Daugherty in America.
The guidance I offer on this site is based on my own costly experience with a credit repair agency, which charged me $4000 for services. I aim to save you from similar expenses by sharing the same process I paid for, which I learned to execute myself through a credit repair program. At the time I engaged with the CRA, I was unaware that they employed the very methods I would eventually learn to use myself.
One creditor, whom they disputed, complied fully with the law by providing the requested documents. Additionally, they included a copy of the letter they received from the Credit Reporting Agency (CRA), which was a debt validation letter similar to the ones I will provide you, free of charge.
Initially, I saw this as an excellent side hustle, promising guaranteed income during the 2020 pandemic when non-essential workers were homebound and credit scores were at risk. However, I reconsidered charging for the service, opting instead to help friends and neighbors improve their credit reports for free.
Here’s how it works: Credit repair agencies begin by sending a series of letters to the credit bureaus, starting with a validation letter. This letter compels the bureaus to confirm the debt’s validity and ownership. If the debt is valid but your name is misspelled, it’s considered invalid under the FCRA, highlighting the importance of correcting name errors on your report. If the debt is invalid for other reasons, the creditor must respond.
Should they fail to respond within the allotted 30 days, the incorrect information must be removed from your account. If they do respond, often affirming the debt’s validity, the bureau is obligated to provide proof. It’s crucial not to engage with callers who ask personal questions, as they may be attempting to coerce you into acknowledging the debt, thereby validating it.
The bureau will probably send a letter confirming the debt’s validation, intending to keep it on your report. They must supply proof that the debt belongs to you. If they don’t, you should send a letter demanding proof, referred to as round 1.5 or 1a.
If the information is not removed or the bureau fails to respond, a second-round letter should be sent demanding the removal of the information due to their lack of response.
Should the information remain, a third-round letter with legal terminology should be dispatched, requesting the bureau also provide the eOscar codes. Further details on this will be shared in a future post.
If the information persists, a fourth-round letter indicating an intent to sue should be sent. This action often prompts bureaus to delete the incorrect information to avoid FCRA law violations, which could result in fines, penalties, and damages.
Sample letters will be provided for your use and modification. Stay tuned for updates.
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