Disputing with the Credit Bureau

This is one of a series of articles I will be writing on credit repair.  For the previous one, see Debt Validation.  I am not an expert in this field and am learning as I go.

As stated in the post on Debt Validation, I think your first step should be to contact the collection agency.  If they don't respond, then the fact that they didn't respond is a reason to challenge the debt.

There are different types of dispute letters you can send to the credit reporting agency.  I am not clear if you can send multiple letters.  It seems to me that if they respond and verify the debt that that settles it.  But maybe you can still keep disputing it.

The basic dispute letter is described here: https://www.consumerfinance.gov/ask-cfpb/how-do-i-dispute-an-error-on-my-credit-report-en-314/ .  I will call it a "611 letter" as described further below. You can do this online, but I have heard that it is better to mail it in.  Provide as much detail as possible about the dispute.  For the record, these are the addresses:

Equifax Information Services LLC, P.O. Box 740256, Atlanta, GA 30348-0256
Experian P.O. Box 4500, Allen, TX 75013-1311
TransUnion LLC Consumer Dispute Center P.O. Box 2000, Chester, PA 19016-2000

The legal basis for this dispute is 15 U.S.C. § 1681I aka FCRA § 611, which states:
(A)In general.  Subject to subsection (f) and except as provided in subsection (g), if the completeness or accuracy of any item of information contained in a consumer’s file at a consumer reporting agency is disputed by the consumer and the consumer notifies the agency directly, or indirectly through a reseller, of such dispute, the agency shall, free of charge, conduct a reasonable reinvestigation to determine whether the disputed information is inaccurate and record the current status of the disputed information, or delete the item from the file in accordance with paragraph (5), before the end of the 30-day period beginning on the date on which the agency receives the notice of the dispute from the consumer or reseller. 

The credit reporting agencies may reject the dispute, calling it frivolous, or saying that they need more information.  If they need more information, just resubmit it in more detail.  If they say it is frivolous, then I think it can still be resubmitted, but it needs to be totally rewritten and worded in a different way - don't just resubmit the same letter.

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There is also something called a "609 letter".  This is really a misnomer because section 609 doesn't give you any rights to dispute - section 611 does that.  Section 609 says in part: Every consumer reporting agency shall, upon request, and subject to section 1681h(a)(1) of this title, clearly and accurately disclose to the consumer: (1) All information in the consumer’s file at the time of the request,

But if you just focus on the words "clearly and accurately" then maybe this does give you some additional rights.   A sample letter states in part:
Dear Credit Bureau (Experian, TransUnion or Equifax), I am exercising my right under the Fair Credit Reporting Act, Section 609, to request information regarding an item that is listed on my consumer credit report. [List account names and account numbers] As per section 609, I am entitled to see the source of the information, which is the original contract that contains my signature.  I have also included a copy of my credit report with the account I am requesting to have verified circled and highlighted. If you are unable to verify the account with the original contract, the information should be removed from my credit report within 30 days.

One credit repair company bases its "claim to fame" on section 609. See  https://www.609creditrepair.com/
The Easy 609 Credit Repair Secret: The Federal Law Loophole That Removes All Negative Accounts Every Time! SECTION 609 of the Fair Credit Reporting Act does not care whether the negative account is valid or not. The letters dispute the Credit Reporting Agencies right to REPORT the adverse account - NOT whether or not the adverse account is valid.

I don't believe the 609 letter does any of this.  But it might, I could be mistaken.  I don't think it hurts to send a 609 letter.  But the question is, can you send both a 609 letter and a 611 letter?  If so, which one do you send first?  It seems to me that the statement about "if you are unable to verify the account with the original contract, the information should be removed" invokes section 611.  So I think you can only send one 609 or 611 letter.

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Now, what happens if the disputed debt comes back verified?  Then you can send a Method of Verification request, aka a 623 letter aka a Notice of Dispute.  I think a Notice of Dispute is a followup to the collection agency whereas a Method of Verification is for the credit reporting agency.  Is a Method of Verification letter the same as a 623 letter?  I will write another blog post about this.

(Update:  One article here: https://www.preventloanscams.org/method-of-verification-letter/ , seems to say that a Method of Verification is different from a 623 letter.  So maybe a "Method of Verification letter" could be called an "enhanced 611 letter".  So are there 3 levels of dispute possible?  Again, the subject of another post.)

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In closing I will say, if you wonder if you should dispute an item, I will say, yes, dispute it.  Dispute early, dispute often (every 30 days).  It doesn't matter if you think the item may be valid, the credit repair agency has to provide some proof of it.

On more last thing.  Don't use a form letter when writing to the credit bureaus.  Make it unique in your own wording.  This will be read by a computer with some level of artificial intelligence and pattern matching, that will try to categorize it, so don't make it easy on them.