Factual disputes on negative, and even positive items on your credit report can literally PAY off! This is a topic we at Credit Wellness Solutions will shout to the rooftops! There are so many credit hack myths all over the internet. To be truthful, there is no such thing as a credit hack! However, you can get negative items removed from your credit report
if you dispute properly. Even if disputing factual errors on your credit report does not result in the errors being fixed or deleted, you then have the option to litigate or arbitrate to get those items deleted and potentially get a handsome cash settlement or judgement for it as well! Often, the creditors will settle outside the arbitration or courtroom, because it’s cheaper for them to pay you than to fight you. Keep reading to learn how to find errors on your credit report, and factually dispute them, or click the button below to schedule a free consultation with Credit Wellness Solutions.
Your Credit Report Is Loaded With Errors
Published statistics from the credit bureaus suggests that credit reports are accurate 98% of the time. If you look deep, you will actually discover that those are fluff statistics. In fact, we have NEVER seen an accurate credit report. We have stated this many times in other articles. We suggest that there is no such thing as an accurate credit report, at least by the standards created by
the credit reporting industry to ensure compliance with the Fair Credit Reporting Act’s (FCRA) mandate of reporting with “maximum possible accuracy” on a credit report. That standard is called Metro2, which is a universal format of all 3 major credit bureaus in which items on your credit report is reported. While Metro2 is not the law itself, but Metro2 is the standard created to comply with the law. One could easily argue that if the credit reporting is not in compliance with Metro2, then it cannot comply with the law.
What Are The Types Of Disputes Other Than Factual Disputes?
There are a few other types of disputes that are commonly used in credit repair, or when there is something on your credit that you legitimately question. Below is a small listing of most types of disputes along with a summary of why you should, or why you should not use them. Here they are:
- Validation Of Debt Disputes – These disputes are used to see if a debt belongs to you. A lot of time, they ask for documentation proving that the account is yours. These are more commonly used with debt collections, but can be used for any item on your credit. A “VOD” is popular in the credit repair industry. You should only use a VOD if you truly do not recognize the item on your credit.
- Identity Theft Disputes – These are most commonly used by scam artists that claim to be credit repair companies. They typically advertise on social media or Tik Tok claiming they will delete every negative item on your credit report in 30 days or less. This involves you getting a police report claiming ID Theft and sending a dispute. This is commonly called a “Credit Sweep”. Identity Theft disputes should only be used for real victims. False claims of ID Theft can land you and the “Sweeper” in jail and come with stiff penalties. We offer free service for real victims of ID Theft.
- Metro2 Disputes – This is the most common factual dispute. As explained above, Metro2 is the universal industry standard for reporting credit accounts to the 3 major credit bureaus. A Metro2 dispute calls out factual errors, inconsistencies, and missing information. Although Metro2 is not the law, it was designed to comply with the law and it’s mandate of “maximum possible accuracy”. A Metro2 error can easily be argued in a court of law, because if an item has a Metro2 error, then it is is also not reporting to “maximum possible accuracy”.
- 609 Disputes – 609 Disputes are the most popular and easiest to find on the internet, however, they seldom work, and misapply the law. Although, they are similar to validation of debt disputes, they demand original documentation to be produced by the credit bureaus, or they are in violation of section 609 of the FCRA. However, this is false logic as section 609 only entitles consumers to a copy of their credit report upon request. We wrote an extensive article on this topic you can find here.
Do I Need A Professional To Help?
This is entirely up to you. Think of a credit repair company as a service like Jiffy Lube. You can change your oil on your own, or you can allow someone else to do it for you. Although you can dispute items on your credit report on your own, it’s good to have a professional on your side who
knows how items on your credit should report, and how to draft a metro2 dispute, any other factual dispute, or any of the disputes listed above. I will caution however to stay clear of companies who still use 609 disputes as they will only be taking your money every month. We do caution however that many credit repair scams exist, to learn more about what a reputable credit repair company looks like, CLICK HERE.
Why Factual Disputes?
Factual disputes give you leverage against the credit bureaus and the creditors. This is because a good, solid dispute based on fact will create accountability that the creditors, debt collectors, and credit bureaus must address your dispute, or face potential financial and regulatory consequences. Disputing an item on your credit report factually allows you to have this leverage. If the item you are disputing is not fixed or deleted,
you have additional options at your disposal that can get those items deleted or fixed. The Fair Credit Reporting Act (FCRA) entitles you to a fair, accurate, and verifiable credit report, reported with “maximum possible accuracy”. Additionally, debt collectors are held to even tougher standards under the Fair Debt Collection Practices Act (FDCPA). Factual disputes give you additional remedies to bring accountability by allowing you to file lawsuit, or arbitration to get your point across.
Where 609 Disputes Fail
609 Disputes, while they appear to be legal in nature, by quoting law and making demands, do not hold up in court or arbitration. Why? They are not based upon fact, they often challenge the validity of the account they are disputing, and demand original signed contracts to be produced by the credit bureaus. Here’s a couple problems with 609 dispute letters…
- They Do Not Quote The Law Correctly – Section 609 of the FCRA basically says that the credit bureaus must disclose all information in a consumer’s credit file upon request. That’s all fine and well, but do you think the credit bureaus maintain a file of original contracts? No. This section of law basically means the credit bureaus must supply a CREDIT REPORT upon request. When you get your credit report, the bureaus have satisfied this provision. Also think about it, when is the last time you physically signed a contract to get a credit card? The silence is deafening.
- They Quote Irrelevant Case Law – Once again, the case law that is quoted is often obsolete at best, or based on consumer law not related to credit reporting.
- They Make False Claims – Claims like validate the account because it was “not mine” or “never late”. Making claims like that, unless you can back them, will not pass the sniff test of the credit bureau’s dispute processors. It will land in the frivolous pile very fast.
- You Will Lose In Court Using A 609 Dispute – See Paragraph Below
Many consumers have tried to bring lawsuits against the credit bureaus using 609 letters from online sources, credit “gurus”, or self-help books like “Credit Secrets”. Needless to say they had to file pro-se because no attorney would touch their case, and the cases failed miserably. Use Google Scholar to look for the lawsuits and see for yourself. Why waste your time and effort on something that will not work, but rather use something effective that could literally PAY YOU?
Factual Disputes Are Perfect For Cleaning And Improving Your Credit
While other credit repair companies rely on some antiquated methods, we know the value of the simplicity of just sticking to the facts. Why dispute something on a wing and a prayer, hoping for a deletion? You can literally improve your credit, and get negative items removed from your credit reports when you just simply point out the errors on your credit report. Even without a deletion, just by disputing factual errors, we have seen accounts updated to where it is no longer hurting the credit score, or doing less damage! Again, even if the negative item isn’t deleted, if there are still errors
remaining on the credit report after disputing, you have now successfully built the perfect case to sue with (if the items have caused you to get denied credit, or receive higher interest rates), or if your original agreement has an arbitration clause, you can take the creditor to arbitration and not only get damages awarded to you for those errors, but also get the item deleted! It’s a win-win scenario!
You can do this on your own (we do offer a DIY Service where we help you do it yourself), or you can let us do it for you. Regardless, you could end up with a much better looking credit report that will help you qualify for nearly anything, and potentially end up with cash in your pocket! Factual disputes are the ONLY way to go! Click the button below to get started today!
