How to Talk About Your Debt Record
Hello, this is Lev Selecter, founder of 101creditrepair.com, now today’s topic is why when disputing the negative record you should first dispute it with the credit reporting agencies and not with the original lender. And there are two reasons for that, first reason is, it may be the only action necessary to remove the record. If you read the letter to credit reporting agencies, in about 10 to 20 percent of cases they just remove the record and you’re done, in just one step you solve the problem. So this is the first reason that is absolutely no sense in not doing something that simple. Now the second reason is even more important. Let’s say on the first step you receive the letter that the negative record was verified and it stays on your file, on your report. So what’s suppose to happen that after you request it to be removed, credit reporting agencies was suppose to contact the original lender and to verify this information and the lender confirm this information and you receive the letter that the information was verified. Now what you can do, now you can send the letter to the original lender and request investigation and removal of this record. And now, because you have letter from credit reporting agencies, this is actually according to fair credit reporting act, it’s an actionable item, you can even sue them if they don’t comply. Whereas if you don’t do it the first step, there is no way you could sue them, in fact, they can completely ignore you and there is nothing you can do. It’s a little bit of legal trickery but procedural thing, but important to understand. So that’s why this is the second reason why you should always start to dispute with credit reporting agencies first, and of course there are no rules about exceptions. If you have a very simple case, sometimes what you can do, you can just call the original lender and ask them to rectify and like for example, you had a late record and you want it to be remove and they can do it as a courtesy to you. In this particular situation, you resolve your problem with just one telephone call and you’re done. Now, but of course, if this telephone call didn’t help, then you should follow the standard path which is to write the letter disputing the record to credit reporting agencies, get verification and then go to the original lender. Okay, this is it for this video, you can visit our website, 101creditrepair.com, that way you can find more videos like that and also guides and other information which will help you in increasing your credit score. This was Lev Selecter, thank you.