Module 8A: Checking Your Disputes
The whole key to the credit repair procedure is that if a credit bureau cannot verify information on your credit report within the time allowed by law, they must remove it. You need to track how long your credit repair disputes take. If the dispute period goes longer than the 30 to 45 days specified by law, but you can't prove it, you've missed your chance to delete an item from your report.
In this video, you will learn how to properly document and keep track of your interactions with the credit bureaus and creditors.
- 30 Day No Response Letter
It has been 30 days after you've sent in your dispute and the credit bureau has not responded. If they do not respond within this time frame, they must remove the negative listing disputed according to the Fair Credit Reporting Act. Use this letter (pdf) to have your derogatory item removed.
Module 8B: What to Do When Disputes Are Not Removed
When you get your updated credit report back from the credit bureaus, they will summarize what changed on your credit report due to your challenges. You can compare this report to your notes or to the previous credit report.
Some of your disputed items may come back as verified. The credit bureau never actually talked to the creditor, but has used a web based, automated system called eOscar. This system does not properly verify the documentation needed to validate or invalidate your dispute.
When this happens, you will follow up a technique called "method of verification." This technique forces the credit bureaus to expose the fact that they are using eOscar and not really verifying your claim.
In this video, you will learn how to handle the credit bureaus when their response is not in your favor.
Consumer Financial Protection Bureau (CFPB)
The CFPB regulates the credit bureaus. You can file an appeal with them when you need help and need them to override a decision or lack of action from the credit bureaus.
Federal Trade Commission
If you suspect you are a victim of identity theft, you can file a claim and receive a recovery plan.
State Attorney General
Attorney general duties include providing consumer protections from fraud, scams and dangerous products, people and situations, enforcement of judgments, and many other state government regulated issues. If your credit repair situation requires this level of escalation due to false or inaccurate information not being removed from your file, your state's attorney general would be the office you contact.
The goal in this step is to go through the process and remove as many negative items as possible. You may not remove everything and that's okay. Remove as much as feasibly possible and move on to the next steps. You don't have to remove all the negatives to build a good score.
- Method of Verification Addendum
This addendum points out several sections of code in the Fair Credit Reporting Act that provide a deeper understanding of the method of verification and how items are supposed to be verified by the credit bureaus.