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You have a right to an accurate and fair credit report. But people make honest mistakes, and sometimes the information on your credit reports isn’t right. That’s why there’s a process for TransUnion, Equifax, and Experian disputes. But what happens if your credit dispute is denied? You definitely have options, so keep reading to learn more.
A credit dispute can refer to a few things. For the purpose of this article, we’re mostly concerned with disputing inaccurate information that appears on your credit reports. However, you might also dispute collections by asking for validation of a debt before you move forward with negotiating or fighting a collection attempt.
When it comes to disputing inaccurate information in your credit report, you’re supported by the law. The Fair Credit Reporting Act requires credit bureaus like TransUnion, Equifax, and Experian to provide fair and accurate credit reporting. They also have to provide ways for consumers to seek to correct inaccurate information they might find in their credit reports.
When you submit a dispute, the credit reporting agency must investigate the items in question–usually within 30 days of receiving your communication. Once the investigation is complete, the credit bureau has 5 days to make any appropriate changes to your file and notify you of those results.
The Fair Debt Collection Practices Act provides some support for a consumer disputing a collection. Under the FDCPA, a collection agency must provide you with information that verifies the debt, including the total amount due and the original creditor. If you receive a collections notice and aren’t sure the debt is yours because you can’t identify it, you can send a debt validation letter to request this information.
The act of asserting your rights under laws like the FCRA or FDCPA doesn’t, of itself, hurt your credit. However, the outcome of these actions might change your credit score or what you owe.
For example, if you dispute a negative item on your credit report, that doesn’t in itself have any bearing on your credit score. However, if the item is removed from your credit report as a result of your TransUnion, Equifax, or Experian dispute, your credit score based on that report may increase.
Likewise, if you ask for validation of a collection item and the agency can’t prove the debt, you may not actually owe it. You can dispute the information on your credit report in that case, using the lack of validation documents as part of your reasoning. If the collection is removed from your credit report, your score will likely go up.
You can dispute as many items as you want. However, for an increased chance at positive outcomes, you may want to follow some best practices:
You may wonder what happens if your TransUnion, Equifax, or Experian dispute is denied. You can keep submitting disputes to try to get the information corrected. However, you shouldn’t simply submit a carbon copy of the same dispute you already tried. If the credit bureau already denied that one, they’re likely to deny a subsequent attempt that doesn’t add any additional information.
Instead, do more research or come up with better documentation that proves your case. Then submit another dispute with that new information. You can also submit another dispute with a different reason.
For example, you may have disputed an account on your credit report as being something you don’t owe. If the creditor submitted documentation proving that you did, indeed, own the account and owe on it, you could change your dispute to demonstrate that the amount reported as owed is incorrect. Obviously, you should only do this if you have evidence and truly believe you don’t owe the amount reported.
In another example, you may have disputed that an item is incorrect but lost. However, if it’s still appearing on your credit report past the allowed time, you could try again and argue that the item should have aged off your report.
There’s no limit to how many times a consumer can dispute an item on their credit report, according to National Consumer Law Center attorney Chi Chi Wu. “In some cases, it will take several disputes to resolve a matter. However, if the consumer submits the same dispute regarding the same item, it may get rejected as ‘frivolous or irrelevant.’ A good idea is to add additional information or documentation to each subsequent dispute,” Wu said.
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