A credit dispute letter is a written document sent from a borrower to their lender or to a credit bureau/agency. Usually, the term "credit dispute letter" refers to letters sent to correct errors on a credit report. However, the term can also refer to other correspondences that involve credit negotiations, fraud, non-payment, and other financial issues between lender and borrower. Credit dispute letter are often referred to during lawsuits and legal proceedings.
What Should Be Contained in a Credit Dispute Letter?
When sending a credit dispute letter to a credit report agency, the letter should contain:
- The error, mistake, or issue that you have identified in the credit report
- How the error should be corrected
- Suggested remedies or alternative options for the report
- Whether or not legal action is necessary
When dealing with a credit lender or a loan agency, a dispute letter should contain:
- Your legal issue or concern
- Any grievances or complaints regarding the company’s service
- Information regarding mistakes or errors on the company’s part
- Suggested options to remedy the error
- Suggestions for new loan terms (such as an adjustment in interest rates, debt cancellation, or an extension on a payment deadline)
Of course, credit dispute letters should always be in writing, and signed. You should make copies for your records, and you should also keep copies of any correspondences or letters sent to you from the other party.
What If a Dispute Letter Doesn’t Remedy the Issue?
If a dispute letter doesn’t fully resolve the problem, you may need to take legal action to have the matters settled. More serious or complex problems may require the filing of a lawsuit. This is especially true for cases involving fraud, serious debt, or breach of contract. A lawsuit may result in a remedy such as a damages award or reworking of the credit terms.
Should I Hire a Lawyer to Help Me with Credit Dispute Issues?
Credit disputes can often involve complex issues and legal theories. You may wish to hire a lawyer to help you with writing a credit dispute letter, or filing a lawsuit in court. Your attorney can review the material to ensure that it complies with state and federal laws, and to ensure that your rights aren’t being violated.