A good bulk of running a credit repair business involves writing dispute letters to credit reporting agencies so there is a paper trail proving that the client does not owe money to any creditors.
In many cases, creditors fail to report an account payoff or simply make mistakes when sharing account balances and payment information with credit reporting agencies. You will need to send a clear, concise, and persuasive letter on behalf of your clients to the major credit bureaus to have this information removed or updated, thereby improving their credit score.
Here’s a closer look at how to write and send credit dispute letters that work:
Tips for Sending Credit Dispute Letters
- Goal: The goal of credit dispute letters is to identify mistakes or misrepresented items that appear on the client’s credit report so the credit bureaus can make corrections.
- What to include: You will need to include a formal letter stating the specific inaccuracies and details about when the debt was paid off or what the correct amount due actually is within this letter. The letter must be signed and dated, and needs to include a copy of the current credit report with inaccuracies clearly highlighted or circled. If it’s the first time you’re disputing a certain item (we call this round 1), always include a copy of the client’s government issued photo ID (like a driver’s license) and proof of address (like a utility bill, insurance or bank statement or a bill), showing the client’s name and current address.
- How to write: Make your points as clear as possible so the credit bureaus don’t have to contact you for clarification and can make updates quickly.
- How to send: It’s generally a good idea to send all documents via certified mail and request a return receipt so you can keep track of when the credit bureaus received the documents.
- What to keep on file: Include copies of everything you send so you can reference these items or resend them if needed. Add these items to your client’s file and make a record of the day the documents were sent and received. This way, you can share the status of the dispute process with your clients upon request.
Writing Credit Dispute Letters that Work
You can create your own template of credit dispute letters (or use the ones provided in your credit repair business software) that work as a reference as long as you remember the following:
- Avoid using online dispute forms. Even if a credit bureau has an online form system set up, you might not have room to provide enough details or attach supporting documentation. More importantly, by using their online form, you are waving some of your rights and releasing them from some of their legal obligations.
By using online dispute forms, you:
- Lose the paper trail that proves your dispute
- Grant the bureaus more time
- Waive important rights like the notification if a previously deleted negative item is re-inserted back on the client’s credit report
- Give them permission not to send you investigation results
Plan on sending a dispute letter via certified, registered mail so you have formal documents to support the dispute claim in hand and do not give up on your rights
- Customize the letter. Avoid using generic language. Instead, personalize your letter in a manner that is clear, concise, and authentic. Outline the problems and make sure it is free of any spelling and grammar mistakes
- Outline factual errors in detail. You can use a numbered list or bullet points within the letter if you have several items to dispute. If you have a longer list, consider attaching a separate document with a comprehensive list. The goal is to provide as many relevant details as possible so it’s clear what needs to be corrected or updated. These errors might include: incorrect balances, incorrect credit limits, inaccurate reports of late payments, and incorrect account closure information
- Include any evidence to support your request. If your client can provide letters from creditors verifying balances, on-time payments made, or a confirmation of account closures, make sure to include this as supporting documentation
- Ask for deletions. You can simply ask to have certain information deleted from a credit report so future creditors won’t see a history of collection accounts or even a bankruptcy that doesn’t have to be on the credit report any longer. These negative events can affect your client’s credit reputation and they have the right to request a deletion.
All credit repair specialists who use Credit Repair Cloud have access to it’s library of over 100 credit dispute letters. They can modify them or add their own. Take some time to study the format and language used for different types of letters so you can create a personalized and customized letter for your client. Learn more about ways to increase a credit score quickly in this free training.