Why Dispute Credit Report 1st?

[Shabaka]

I'm in the beginning stages of settling my debts. Had about $60k in total. I would say about a 1/3 of that is with original creditors.

But the other 2/3 is with collection agencies. I've read info on this forum and the ebook 'How To Settle Your Debts'. The book suggest that with CA's you first dispute with the credit bureaus before engaging in debt validation.

Is there a legal reason for this? I know what debts I have and who the alleged collectors are from the letters I receive. Can't I just begin the debt validation with the CA's? Or will I be giving up certain rights I have as a debtor?

Thanks in advance.

[1stStep]

Many times CAs will put something on your report and later have the account pulled...by disputing, you can shake those account off and not really do any work.

[Shabaka]

Thanks! How long after I file dispute with CRA's should I start debt validation? 30 days?

[BV80]

Another reason for first disputing with the CRAs is to preserve your right to sue for an FCRA violation. For instance, if the CA reports an inaccurate amount and won't correct, that's an FCRA violation.

[Shabaka]

Thanks BV80! How soon after I file my dispute with the CRA's should I engage in debt validation?

[BV80]

Thanks BV80! How soon after I file my dispute with the CRA's should I engage in debt validation?

I wouldn't send any letters until I receive a response from the CRAs. Once you hear from the CRAs, you can send dispute letters to the creditors.

Original creditors do not have to respond to a debt validation letter. They're not liable under the FDCPA. The only reason I would send a letter to an OC is if the debt is being reported incorrectly.

In any case, you can dispute debts, but if they're valid accounts and being reported accurately, there's not much you can do to have them removed.

Have you received any collection letters? If not, and if any of the debts are still within the SOL, by disputing, you may be alerting them to your existence. In other words, you're letting them know you care about your credit report, and they may start contacting you.

[Shabaka]

OK Thanks. Yes I was only going to engage in debt validation (DV) with the CA's.

I see that the CRA's allow online disputing. So I guess once I receive an online confirmation that my dispute has been received it's ok to start sending DV letters?

All of my Collection agency creditors are within the SOL and sending letters/making phone calls.

[Shabaka]

Also, I read somewhere (not on this site) where an important strategy for debt validation is to request that the CRA's erase your old addresses from your CR since these are used by the CA's to verify identity and debt. Any truth to this?

[BV80]

OK Thanks. Yes I was only going to engage in debt validation (DV) with the CA's.

I see that the CRA's allow online disputing. So I guess once I receive an online confirmation that my dispute has been received it's ok to start sending DV letters?

All of my Collection agency creditors are within the SOL and sending letters/making phone calls.

I'd wait until the CRAs inform you of the results of the dispute before contacting the CAs.

If you've already received letters from the CAs, the first letter from each CA should have included a 30 day validation notice. The purpose of that notice is to let you know that if you request validation, they cannot continue collection efforts until they respond to your request.

If the 30 days to request validation has passed, you can still send a DV letter, but they are under no obligation to respond and can continue to try to collect.

[Shabaka]

I'd wait until the CRAs inform you of the results of the dispute before contacting the CAs.

If you've already received letters from the CAs, the first letter from each CA should have included a 30 day validation notice. The purpose of that notice is to let you know that if you request validation, they cannot continue collection efforts until they respond to your request.

If the 30 days to request validation has passed, you can still send a DV letter, but they are under no obligation to respond and can continue to try to collect.

This is the first time I've heard of the 30 day limitation on debt validation. That almost nullifies all of the attempts I was going to make at pursuing the DV route as I've been receiving letters and calls for a while from the CA's. Note that I was still prepared as a worst case scenario to settle with them. It will just take several months as I complete a few projects. I mainly wanted to buy some time and not have someone freeze my accounts.

At this point, and since I haven't responded to my CA's in about a year and a half, will disputing with the CRA's cause the CA's to start pursuing legal action?

Thanks again for the info you've provided.