One of the most visited sections of the CreditInfoCenter.com website is to gain access to our free Credit Repair Letters. But even the dozens of letters we’ve posted may not be exactly what you need. There are always special circumstances the normal credit repair letter doesn’t address.
The letters below can be used when circumstances outside the normal dispute process occur. These letters are samples only and you will need to tailor them according to the circumstances of your case.
- You are NOT required to send proof of identity to creditors and collectors and we do not recommend signing the dispute letter.
- Make sure the address you provide on the letter matches the address the creditor has on file. The account number should also be included.
- Do not copy these letters without making significant modifications. You will need to tailor the wording of each letter to fit your individual situation. These sample letters are meant to give you ideas on how to structure your own credit dispute letters.
1. Authorized User Removal Letter to Creditors
An authorized user is someone who is allowed to use someone else’s credit card. The person who owns the credit account is called the primary cardholder. Authorized users may be issued their own credit card with their name on it, but the account belongs to the primary cardholder.
Many financial institutions have begun reporting the status of an account on the credit report of the authorized user. It allows the authorized user to piggyback off the primary cardholder’s good credit habits to help their credit scores. But when the primary cardholder starts to miss payments, you’ll need to ask the creditor to stop reporting the card on your credit report. Here’s how.
Your Full Name
Address
City, State, ZIP
Creditor Name
Address
City, State, ZIP
To Whom It May Concern:
I recently reviewed my (TransUnion/Experian/Equifax) credit report and noticed an error. (Creditor Name) is showing up on my credit report even though I am only an authorized user on the account. As such, the account must be removed from my credit file.
(Insert name of account) with account number (insert account number).
The Fair Credit Reporting Act specifically states that as an authorized user, I am not the responsible party on the account. Additional information can be found in the FCRA Section § 603. Definitions; rules of construction [15 U.S.C. § 1681a].
I plan to check my credit report in 30 days and expect to see the account removed.
Sincerely,
Your Name
2. Repossession Deficiency Dispute
The following is a sample vehicle repossession letter disputing collection activities associated with a deficiency from a motor vehicle repossession. Send a copy to both the collection agency and the original creditor – via certified mail return receipt.
The letter may be used AFTER 2 years from the date of the repossession sale, as long as there has been no filed claim for a judgment. It should not be used if you have been sued, or if the repossession was less than 2 years ago.
The letter requires you to include the Uniform Commercial Code (UCC) for your state and/or the state where it was repossessed. You can find those UCC codes in our article Automobile Repossession Laws by State.
Your Full Name
Address
City, State, ZIP
Collection Agency Name
Address
City, State Zip
Name of Original Creditor
Address
City, State Zip
Name of Original Seller (car dealer)
Address
City, State Zip
Re: Acct # XXXX-XXXX-XXXX-XXXX (collection agency)
Re: Acct # XXXX-XXXX-XXXX-XXXX (original creditor)
Make of car:
Model:
VIN Number:
To Whom It May Concern:
I am writing concerning the above-referenced accounts and transactions.
This vehicle was repossessed by (Original Creditor) in the State of (Your State) on or about, xx/xx/xxxx, and resold on or about xx/xx/xxxx.
Under the laws of the State of (State where the car was repossessed) UCC (The state’s UCC code) and State RISA and MVISA statutes, a deficiency cannot be claimed unless all of the required notices were properly and timely given and all of the allowable redemption and cure time limits were adhered to.
Please provide copies of the legal notices and proof of the commercially reasonable manner of the resale of the subject vehicle.
If no such proof is provided within 14 days from receipt of this notice, the alleged claim of a deficiency will be considered null and void, and any continued collection activities or continued reporting of this invalid claim on my credit reports will be considered a violation of the FDCPA and FCRA.
Additionally, if you singularly or severally fail to comply with the above requests, I reserve the right to seek damages against all parties, under all available State and Federal statutes and UCC remedies.
Sincerely,
Your Name
3. Short Sale or Loan Modification Hardship Letter
Before a bank will approve a short sale or a loan modification, the bank will want to see a hardship letter. A hardship letter is a document that must be created in your own words. Basically, you want to get across to the bank that you did experience hardship but are looking to resolve the situation with their help. Think back to when you took out the loan and what your life was like then — what is different now? Some examples that may qualify for a hardship:
- Unemployment
- Reduced income
- Illness or medical emergency
- Job transfer (voluntary or involuntary)
- Divorce, separation or marital difficulties
- Exotic mortgage terms, i.e., an adjustable-rate loan
- Military service
- Death in the family
- Incarceration
- Increased expenses and excessive debt
- Unexpected repairs or home maintenance
The following letter is just an example — DO NOT CUT AND PASTE THIS LETTER. Your hardship letter needs to be in your own words explaining your unique situation. If you need more information on short sales or loan modification, see How to Apply For a Loan Modification.
Your Full Name
Address
City, State, ZIP
Account Number: XXXXXXXXXX
Creditor Name
Address
City, State, ZIP
To Whom It May Concern:
I am writing this letter to explain why I am currently facing foreclosure on my mortgage to you.
I am very distressed that this has ever happened to me, but I was [laid off], [seriously injured], [going through a death in family]. The circumstances drained my carefully put aside savings and to provide for my family, I was forced to choose between mortgages payments and food. I had no other assets from which to make the mortgage payment.
This is very embarrassing to me. I have always prided myself in paying on time and I have taken steps to put away money in my savings account to guard against other unforeseen occurrences like this. I did not put away enough.
Thankfully, my situation has improved and I am able to get back to regular payments. To make up the payments in arrears, I request that we be able to restructure the mortgage. Staying in my home is very important to me and my family.
We’ve reviewed our finances and believe we could safely accommodate payment of $X,XXX/month over 30 years should you approve our loan restructuring.
Sincerely,
Your Name
4. Letter to Explain Late Payments When Applying For Credit
If you’re applying for a car loan or mortgage and working with a local bank or credit union, explaining some late payments that show up on your credit report may make a difference. The important issue is to know what your credit score is and what kind of “negative marks” you have and get in front of them before you apply. Giving this letter to the bank or credit union can make a difference.
Of course, you do not want to just copy this letter. You will need to change the wording of this letter to fit your specific situation.
Your Full Name
Address
City, State, ZIP
Account Number: XXXXXXXXXX
Creditor Name
Address
City, State, ZIP
To Whom It May Concern:
I am writing this letter to explain my late payments on my (mortgage/credit card) to (mortgage/credit card company) in (insert month/year).
I am very distressed that this has ever happened to me, but I was <laid off>, <seriously injured>, <going through a death in family> . The circumstances drained my savings and I was forced to miss a payment because of it.
I have always prided myself in paying on time, and I have taken steps to put away more money in my savings account to guard against other unforeseen occurrences like this. My financial footing is solid again, and all payments after that time have been made on time.
Sincerely,
Your Name
5. Dispute Letters Addressing California Full Payment Law
When settling debts in the state of California, there are instances where different rules apply. A creditor is allowed to cross out the full payment language on a settlement check which reserves the right for them to sue you in the future for the balance due. But debtors have a way around it. This procedure and letter describe the process.
- Navigating around this law requires specific steps and language. To do so, follow this procedure exactly.
- This requires two letters. Both should be sent with returned receipt. Send the first and wait 30 to 90 days to give the creditor time to object.
- If you do not receive any objection from the creditor, send your check with a letter stating that the check constitutes payment in full.
- Write on the bottom of the check on the front along the top or bottom the exact language you used in the second letter “This check is tendered in accordance with my letter of (date). If you cash this check you agree that my debt is paid in full.”
Letter #1
Your Full Name
Address
City, State, ZIP
Creditor Name
Address
City, State, ZIP
Account Number: XXXXXXXXX
To Whom It May Concern:
This letter concerns the money I owe you. For the past three months, I have received bills from you stating that I owe (insert amount) for (what money was for). Because of the inferior condition of the merchandise I have received, I feel I owe you no more than (insert amount). It is obvious that there is a good faith dispute over this bill.
To settle this debt, I will send you a check for (insert amount) with a restrictive endorsement stating that if you cash the check it will constitute an accord and satisfaction. In other words, you will receive from me a check that states “cashing of this check constitutes payment in full.” If you cash this check, that check will take care of what I owe you.
Sincerely,
Your Name
Letter #2
Your Full Name
Address
City, State, ZIP
Creditor Name
Address
City, State, ZIP
Account Number: XXXXXXXXX
To Whom It May Concern:
Enclosed is a check for (insert amount) to cover the balance of the above-mentioned account. This check is tendered in accordance with my letter of (date). If you cash this check, you agree that my debt is satisfied in full.
Sincerely,
Your Name
