There is a plethora of misinformation on the internet, and sadly in the credit repair industry about 609 dispute letters. In this article we are going to discuss why 609 Dispute letters don’t work, what section 609 of the Fair Credit Reporting Act (FCRA) is, and what a proper dispute should look like.
In order to know why 609 dispute letters don’t work, we must first understand what a 609 letter is. 15 U.S.C. 1681g, In English is the section of the Fair Credit Reporting Act (FCRA) that is referred to as section 609. In this section of the law, Congress addresses
the consumer’s right to obtain information contained in their credit file. 609 dispute letters address the following statement of the law…
Every consumer reporting agency shall, upon request,
and subject to 610(a)(1) [§ 1681h], clearly and accurately disclose to the consumer:
(1) All information in the consumer’s file at the time of the request, except that nothing in this
paragraph shall be construed to require a consumer reporting agency to disclose to a consumer any
information concerning credit scores or any other risk scores or predictors relating to the consumer.
(2) The sources of the information; except that the sources of information acquired solely for use in
preparing an investigative consumer report and actually used for no other purpose need not be
disclosed: Provided, That in the event an action is brought under this title, such sources shall be
available to the plaintiff under appropriate discovery procedures in the court in which the action is
brought”
609 dispute letters are drafted on the premise that the credit bureaus must disclose “all information” on an account that is reporting on a credit report, including originating documentation, such as, a contract signed by you. This is the “credit repair loophole” that is commonly referred. 609 dispute letters employ the strategy of demanding the credit bureaus to produce debt/loan origination documentation to prove the account reporting on your credit in fact belongs to you, and if they cannot verify those documents, then the account must be removed from your credit report. However, those who are firm believers in the 609 disputing method fail to read past the words “All Information”. It goes on to say “in the consumer’s file”. That next phrase is telling. Is the consumer’s file the same file that the furnisher (Creditor) maintains in their database, or is it the consumer’s file that the credit bureaus maintain in their databases? One would expect the furnisher should have debt originating information, however the credit bureaus would only have the information submitted to them by the supplier of the information.
Why 609 Dispute Letters Don’t Work
In plain English, what does section 609 mean? Essentially, section 609 is a mandate to the credit bureaus to provide a full disclosure credit report to the consumer upon request. Do the credit bureaus violate section 609? All the time! That’s another discussion for a later time. So why don’t 609
dispute letters work? It’s really quite simple. The credit bureaus can only disclose to you the information that has been submitted to them by the data furnisher. While the data furnisher may keep on file contracts, and other originating documents, they only submit relevant data via Metro2, which is the industry standard for reporting data to the credit bureaus. More on that in a bit. Another point to consider, especially for credit cards, when was the last time you physically signed a contract or other document to obtain and use a credit card? I will wait while the crickets chirp louder. The fact of the matter is in modern time, we have moved away from paper contracts. In fact many legal opinions already exist on this concept… Offer, Acceptance, Usage there’s your contract.
Can a 609 dispute letter yield you a deletion? It is possible, but extremely unlikely. If I were to put a percentage to your success, I would say you only have a 5% chance of getting a deletion using a 609 dispute letter.
609 Dispute Letters Won’t Hold Up In Court
Here is another reason 609 dispute letters never work. I have yet to meet a consumer protection attorney that will take a case involving the 609 dispute. Several people
have tried pro se and have failed miserably. Section 609 is for credit reports only. You may ask, “Can I sue a data furnisher for not proving the account is mine with a signed contract”? There again I ask, When is the last time you physically signed a contract for a credit card and some other loans? You may sign a mortgage, some personal loans (secured or unsecured), or for a large purchase like a car. Otherwise, we go to the popular legal precedent that already exists, offer, acceptance, and usage. No judge who would wish to remain 6ft above ground would rule in your favor or create legal precedent for you. Additionally, these letters are usually never based on fact, making them useless in court. Phrases such as “Prove it or Remove it”, and “Not Mine, Never Late”, are very commonplace. Many of these letters directly quote the law, cite old and irrelevant case law, or make steep threats of lawsuits. None gain you any ground when disputing.
More Reasons 609 Dispute Letters Are Ineffective
If you think your dispute letter will land on the desk of a high level supervisor or executive, think again. It doesn’t matter how much you threaten lawsuit or quote the law, your dispute ultimately lands in a massive mailroom where an overworked and
underpaid employee (some in foreign countries) opens your letter, scans it, tries to make sense of your letter to assign codes on a digital system, called E-Oscar, that is then transmitted to the furnisher of the information for investigation. They are trained to skim your letter in 2 minutes or less to determine the nature of the dispute (so a lot of legal jargon is not only a waste of effort, but a waste of ink and paper), and move on to the next one.
Getting 609 dispute templates online, from an automated software, or from popular self-help resources such as, Credit Secrets, or Credit Launch Secrets to name a couple may seem like a fast and effective source for disputing. However, thousands of others before you, and thousands of others after you have thought, or will think the same thing. In other words, these people see the same letter over and over again, numerous times daily. They will simply open your letter, see the structure, and know exactly what E-Oscar code to use, or simply placing your letter in the canned response bin (i.e. trash can) with the thousands of other letters exactly like yours.
How A Proper Dispute Looks
Now that I have illustrated the 609 dispute letters’ ineffectiveness, it amazes me that so many employ and propagate this method of disputing. It really makes me facepalm when I see credit repair “gurus” and companies
spreading this misinformation. It is no wonder credit repair is widely considered a scam and ineffective. In fact, it is these people who make the job harder, and create a barrier both legally and with clients for legitimate reputable credit service companies to do business. Also it is no wonder consumer complaints and disputes are going unanswered by the big 3 credit bureaus. I discussed the disregard of consumer disputes in my previous blog post that is definitely worth a read. 609 dispute letters do an injustice for both the consumer, and credit service professionals alike.
Okay, enough ranting. Here is what a proper dispute letter should look like in the bullet points below.
- Disputes Should Always Be Factual – There I said it. Factual disputing is the ONLY way to go. Base your disputes on facts. Trust me, credit reports are wrought with issues. Currently a 100% accurate credit report does not exist. You will certainly find multiple avenues for dispute.
- Disputes Should Not Quote The Law , or Case Law – This does nothing to get you a deletion. Those dispute processors previously mentioned do not know or care about the law or case laws, they are looking for dispute language to put into E-Oscar codes, that is it.
- Be Original In Your Disputes (Avoid Online Templates) – Dispute processors are trained to spot template letters. To the credit bureaus, template letters are assumed to have 3rd party involvement, even if they are written in 1st person. Think of it this way, if you find a template online to use, how many thousands of people downloaded they same exact letter? How many consumer after you will download the same exact letter? Dispute processors know this and will likely give you a canned response form letter with no real results.
- Make Your Letter Simple & Easy To Understand – The old acronym K.I.S.S. comes to mind. Keep It Simple Stupid. You don’t need a lot of fluff and fillers in your letters. If your letter is difficult for a dispute processor to understand, what do you think your result will be if you needed to take the bureau or furnisher to court? Always draft your letters in an easy to understand format, treat each communication as if a judge or jury will see it. There should be no question as to the nature or intent of your communications.
Disputing Metro2 Fields
In lieu of 609 dispute letters, using metro2 fields to dispute is a powerful way to create effective dispute letters. As the image to the left states, What is Metro2? Metro2 is the credit industry standard format for reporting credit information to the credit bureaus. This is a powerful tool to use against the credit bureaus and data furnishers. Looking at credit reports, it is easy to spot that they cannot seem to follow their own standards.
Some may argue with me that Metro2 is not the law, and you can’t dispute credit items based on Metro2 inaccuracies, and inconsistencies, and missing data. Think of it this way. The FCRA states that credit information must be reported to “maximum possible accuracy” and “verifiable”. Metro2 was created by the CDIA, which is the credit bureaus’ trade association, to make reporting credit data to the credit bureaus in one standard format. This was format was intended to report “accurate and timely” data to the credit bureaus to meet the credit industry’s mandate of the FCRA to report to maximum possible accuracy. So to debunk those who say Metro2 is not the law, my argument is Metro2 ties into the law as it was created to comply with the law. My company, Credit Wellness Solutions uses this method in our credit repair program for our clients to dispute items on their credit reports. We will soon be offering classes for consumers to use this method as well. For Credit Repair Professionals, there is a growing movement for Pre-Litigation, Metro 2 disputing. Led by Steven Palmieri, his group teaches credit repair professionals to get away from 609 dispute letters, and get something powerful for their clients that create disputes that hold up in court. Click Here to access this group and start learning.
Our Plea To The Credit Repair Industry
All the false hype of 609 dispute letters created by “credit repair professionals” to quit spreading this misinformation, and if you want to teach people how to fix their own credit, teach them the RIGHT WAY! If you don’t know how to leverage Metro2 to frame a solid FACTUAL dispute, reach out to me or call me. I will help you, or get you enrolled in
an extensive training course that will help. I know your books and Facebook groups are large, and you are making money from consumers, knowing that in fact your disputes do not work. These letters and self help programs are causing further damage to the credit repair industry, an industry wrought with either credit sweepers, 609 dispute “gurus”, or armatures with little to no training who bought a certain large software that promises their prospects they will make millions with their software. For the love of God, learn your trade. Get trained to do credit repair the right, compliant, and effective way. Please quit using 609 dispute letters, and selling your templates and self help books. Now that I have said my peace, in all seriousness if you are a credit repair business and want to learn Pre-Litigation disputing, give me a call I will help.
Final Thoughts, & Consumer Options
Want to learn how to fix your credit the right way? We at Credit Wellness Solutions would love to help! Whether you want to enroll in our credit repair program or do it yourself, we can help you with effective dispute letters
that will either get the deletions or corrections you are seeking, or letters that will hold up in court should you need to pursue litigation or arbitration to help with your credit woes. Soon we will have a training course, and a possible software that consumers will be able to use to create Factual disputes that hold the credit bureaus and data furnishers accountable. Hopefully, this article has clearly spelled out why 609 dispute letters are a waste of time, effort, ink, paper, and postage. Contact me today to schedule a Free Consultation. We would be more than happy to help you!
