When you have a complaint or dispute with a creditor, lender, credit bureau, or debt collector, it’s best to communicate in writing. Many disputes are time-sensitive and sensitive to messaging, especially when sent via certified mail with a request for a return receipt, as it gives you a timeline to track the company’s response time. In some cases (like disputing a credit card bill error), you need to send a letter to protect your rights.
Sample Dispute Letter on Credit Report
You have the right to an accurate credit report. If you find an error on your credit report (for example, an account that doesn’t belong to you), send a dispute letter to the bureau that provided the report. Typically, the credit bureau has to investigate within 30 to 45 days.
Sample Stop Communication Letter
A stop communication letter will stop calls from debt collectors. The letter informs the collector that you do not wish to be contacted. You do not have to acknowledge anything or promise to pay later (you probably shouldn’t do either of those anyway). Just let them know you want to end communication.
Sample Debt Verification Letter
Within the first 30 days of being contacted by a debt collector, you can dispute the validity of the debt and request the collector send proof that the debt is actually yours. Once the debt collector receives your written verification request, they must stop collection efforts until they provide you with proof of the debt.
Sample Credit Card Cancellation Letter
You can close a credit card over the phone, but following up with a letter confirming that you requested to close the account on a specific date is advisable. The letter could be useful if there is a future dispute about when your account was closed or that you requested your account to be closed at all.
Sample Pay for Delete Letter
A “pay for delete” letter is an offer to a creditor or debt collector to remove a negative entry from your credit report in exchange for payment. You can make an offer over the phone, but a signed letter from the creditor or collector is strong evidence that an agreement has been made.
Sample Expired Time Limit Letter
An expired time limit does not absolve you of your obligation to repay a debt, nor does it prevent collectors from trying to compel you to pay. (Instead, it sets the time when the debt becomes legally unenforceable.) You can customize this template credit letter and send it to debt collectors who continue to attempt to collect on a debt that has passed its time limit. Be cautious not to say anything in your letter that could restart the expired time limit. Even acknowledging that you owe the debt could restart the clock, giving the collector more time to sue you.
Sample Bill Dispute Letter
Many people contact their credit card issuer when they notice an error on their bill. It’s a quicker way to correct errors, as the credit bank can start investigating immediately. A written bill dispute letter is crucial if you want the card issuer to adhere to the Fair Credit Billing Act. The law requires creditors to investigate your dispute as long as your letter is sent within the specified timeframe. It also allows you to withhold payment for the disputed amount while the investigation is ongoing.
Tips for Sending Credit Letters
Letters are a powerful tool for communicating with creditors, debt collectors, and other companies. Remember that thousands or even millions of people may be using the same letter templates that you use. Customize the credit letter templates as needed to fit your circumstances.
Frequently Asked Questions (FAQs)
What
Should I tell the creditor if I can’t pay?
Inform the creditor briefly about the reason preventing you from paying, whether it is due to job loss, illness, or any other legitimate reason. Let them know what you are doing to try to meet your financial obligations and what you can pay, even if it is $10 a month until your financial situation stabilizes. Creditors want to receive the money you owe them. In most cases, they will work with you.
What is a financial hardship letter to a creditor?
A financial hardship letter informs creditors that you are experiencing difficulties that make it impossible for you to pay your bills. Reasons can include job loss, illness, a family death, divorce, or any significant event in your life. A financial hardship letter can help the creditor determine how to handle your debt collection.
Is it better to send a letter to the creditor or call them?
You can call the creditor to discuss your situation, but you should always follow up with a letter so you have a record of your communications. You should also take detailed notes about any phone calls you have with creditors.
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Sources:
The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts in our articles. Read our editorial process to learn more about how we verify facts and maintain the accuracy, reliability, and quality of our content.
FTC Consumer Information. “Disputing Credit Card Charges.”
Consumer Financial Protection Bureau. “If a Credit Reporting Error Is Corrected, How Long Will It Take Before I Find Out the Results?”
Consumer Financial Protection Bureau. “How Can I Stop Debt Collectors From Contacting Me?”
Consumer Financial Protection Bureau. “Are There Laws That Limit What Debt Collectors Can Say or Do?”
Lexington Law. “Pay for Delete Letter Template for Credit Repair.”
FTC Consumer Information. “Time-Barred Debts.”
Source: https://www.thebalancemoney.com/sample-credit-letters-for-creditors-and-debt-collectors-961135
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