Erasing Bad Credit Manual 0402

Get you credit back on track
Revision 04/02
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eBusinesspower 2000,2001 www.ErasingBadCredit.com

Table of Contents
TABLE OF CONTENTS.......................................................................................................2
PART I ....................................................................................................................................7
WHAT IS A CREDIT BUREAU? ........................................................................................7
HOW DO THE CREDIT BUREAUS OBTAIN INFORMATION? .................................9
HOW LONG DO THE CREDIT BUREAUS KEEP MY CREDIT INFORMATION?.9
WHY SHOULD I CHECK MY CREDIT REPORT?........................................................9
HOW DOES THE CREDIT REPORTING SYSTEM WORK?.....................................10
HOW HAS THE COMPUTER AGE AFFECTED THE CREDIT REPORTING

PROCESS? ...........................................................................................................................10
WHAT ARE THE LAWS GOVERNING CREDIT BUREAUS?...................................11
HOW DOES INFORMATION GET INTO A CREDIT REPORT? ..............................12
DO I HAVE THE RIGHT TO KNOW WHAT IS IN MY CREDIT FILE?..................13
HOW CAN I FIND OUT WHAT INFORMATION IS IN MY CREDIT FILE?..........15
WHO MAY OBTAIN A COPY OF MY CREDIT FILE? ...............................................17
HOW DO ERRORS OCCUR AND HOW FREQUENTLY?..........................................18
CAN I REMOVE ACCURATE CREDIT INFORMATION FROM MY CREDIT

REPORT? .............................................................................................................................18
HOW CAN I ADD POSITIVE DATA TO MY CREDIT REPORT?.............................19
WHAT SHOULD MY GOALS BE IN CREDIT RESTORATION?..............................20
SHOULD I APPLY FOR CREDIT WHILE IN THE RESTORATION PROCESS? ..20
HOW LONG SHOULD THE CREDIT RESTORATION PROCESS TAKE?.............21
WHY DOES THE CREDIT RESTORATION PROCESS TAKE SO LONG? ............21
HOW MANY ROUNDS OF DISPUTES SHOULD I EXPECT TO UNDERTAKE? ..22
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WHAT CAN I EXPECT FROM THE BUREAUS AS I WORK THROUGH THE

RESTORATION PROCESS?.............................................................................................22
ARE THE CREDIT REPORTS ALL THE SAME? ........................................................23
WHAT'S THE WORST THING THAT CAN APPEAR ON MY CREDIT REPORT?

................................................................................................................................................23
HOW TO READ AND INTERPRET YOUR CREDIT REPORT .................................24

What is an inquiry? ....................................................................................................24
What is a Revolving Account?...................................................................................25
What is an Installment Account? ...............................................................................25
EQUIFAX ..................................................................................................................26
TRANS UNION.........................................................................................................30
TRW - NARRATIVE.................................................................................................34
TRW - BLUE/RED CODED .....................................................................................36
WHAT ARE THE NOTATIONS ON MY CREDIT REPORT SUPPOSED TO MEAN
TO ME?.................................................................................................................................39
WHAT IF THE CREDIT REPORT IS NOT TRW, TRANS UNION OR EQUIFAX?

................................................................................................................................................44
PART II.................................................................................................................................45
STRATEGIES YOU MUST KNOW BEFORE YOU EMBARK… ...............................45
SIMPLE STEP BY STEP INSTRUCTIONS TO REPAIR YOUR CREDIT ................46
FEDERAL LAWS ARE IN YOUR FAVOR!....................................................................48
THE EASY ITEMS TO REMOVE ....................................................................................50
AND THE HARD ONES ARE: ..........................................................................................51
DETAILED STEP-BY-STEP ACTIONS: .........................................................................51

Step 1: Get your 3 credit report and identify the derogatory items........................51
Step 2: Write and send your dispute letters............................................................52
Step 3: After receiving your updated files (30 or so days) review them and prepare
for the next round. ..................................................................................................52
Important: ...............................................................................................................53
Step 4: Removing items that were verified by the Credit Bureaus ........................53
Step 5: So, you’ve done all the steps above and the creditor has supplied you with
proof. ......................................................................................................................55
Step 6: No money to settle – No problem ..............................................................56
CCCS: CONSUMER CREDIT COUNSELING SERVICE ...............................................57
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Q. WHAT IS SECURED DEBT? .......................................................................................59
Q. WHAT IS AN UNSECURED DEBT?...........................................................................59
Q. WHEN DOES A SECURED DEBT BECOME AN UNSECURED DEBT?.............59
BEWARE…. .........................................................................................................................60
• File Segregation: ................................................................................................60
REASONS TO DISPUTE DATA .......................................................................................64
HOW DO I BUILD CREDIT?............................................................................................65
WHAT IF THE CREDIT BUREAU REFUSES TO ACCEPT MY DISPUTE SAYING

THAT I'M USING A CREDIT REPAIR CLINIC? .........................................................66
WHAT ARE THE PRIMARY REASONS FOR THE DENIAL OF CREDIT? ...........66
WHAT IF YOU DON'T GET ANY RESULTS? ..............................................................67
BONUS #1 .............................................................................................................................69
TEMPLATE LETTERS TO DISPUTE WITH CREDITORS AND CREDIT BUREAUS.........................69
1. General Dispute To Collection Agency .............................................................70
2. Dispute of Collections........................................................................................71
3. Dispute to Collection Agency ............................................................................72
4. Negotiating a Settlement ....................................................................................73
5. Negotiating a Settlement with Utility Companies..............................................74
6. Negotiating a Settlement with Creditors ............................................................75
7. After No Response from a Credit Bureau ..........................................................76
8. Disputing Specific Items and Inquiries ..............................................................77
9. Request Reinvestigation of Items that are Still Showing on report ...................78
10. Answer Letter to Credit Bureau's Request for More Information..................79
BONUS #2 .............................................................................................................................80
How to speak with the Creditor’s Representatives ....................................................80
BONUS #3 .............................................................................................................................81
THE FAIR CREDIT REPORTING ACT .........................................................................81
BONUS #4 .............................................................................................................................90
Your Credit Score - FREE .........................................................................................90
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The following techniques will help correct your credit rating and
should be undertaken with all Credit Bureaus.
In this book you will learn the ways to remove negative items from
your credit file.
These methods are sometimes referred to as "Credit Repair". These

are the exact same methods credit repair clinics and attorneys
charge up to $3,500 to perform. Since these so called clinics and
attorneys do not always carryout those procedures correctly,
consumers have been taken for millions of dollars over the past
years.
I will also show you all the jealously guarded secrets by the financial
and credit lending institutions on how to outsmart creditors who are
damaging your credit!
In the first part of the book (PART I) you will get to understand who
are the credit bureaus, how they operate, why they are not on your
side and what the laws governing their conduct are, as well as your
rights.
In the second section (PART II) you will get step-by-step instructions
on removing negative items from your credit.
Some credit blemishes will be easier to remove than others. The

simple blemishes will be removed fairly quickly. As a result, your
credit score will immediately start to improve.
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Other blemishes will be more difficult to remove. But, if you are truly
dedicated to repairing your credit report, you must find patience and
persistence to go thru the process completely. I will show you all the
tricks for removing those difficult blemishes.
The methods listed in this book were put to use over the last 18
months and they do work.
Put them to use for yourself and Good Luck. You deserve good
credit!
Ben
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PART I
What is a credit bureau?
A credit bureau, or credit repository, is an entity that gathers information

about consumers' credit histories.
Your credit history/report includes information regarding the following
items:
• Identity information such as your name, address, social security

number, spouse and date of birth
• Payment habits such as how promptly you have made payments to
previous creditors
• Public records such as records of arrests, indictments, convictions,
lawsuits, tax liens, marriage, bankruptcies, and court judgments.
• Debts
• Other relevant credit data
• Information concerning your current employment such as the
position you hold, length of your employment, and possibly your
income
• Information about your personal history such as the number of
dependents you have, your previous addresses and information
about your previous employment.
Credit bureaus sell credit reports to credit grantors, such as banks, finance
companies, and retailers. Credit grantors use credit reports to determine
whether or not a potential borrower is creditworthy.
There are three major credit bureaus in the United States:
• Experian
• Equifax
• Trans Union
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These three bureaus provide nationwide coverage of consumer credit

information.
The credit bureaus are a for-profit system that generates billions of

dollars in revenue each year from selling copies of credit reports to
creditors and mailing lists. Transunion made 1.5 BILLION dollars last
year.
It is essential to understand that Credit Bureaus are

nothing more than record keepers.
Simply put, they keep a record of who has given you credit, when they
gave you credit, how much credit you are given and whether or not you
paid it back on time.
When you want to obtain credit cards, loans, financing for a car or home,
leases, apartments and sometimes even employment, the lender or bank
will check your credit to see your financial history.
Credit Bureaus are paid by the people who request your

credit file.
Credit Bureaus are not run by banks, police or government, and they have
no legal power over you. So don't be intimidated by them.
They are the Credit Bureaus because they own large computer systems
capable of storing credit information on everyone in the United States.
However, because of the tremendous amounts of information on their

computers, their method of storing information is very basic and contains
numerous errors.
Since the bureaus have made so many errors in the past, all Federal Laws
regarding credit information are very much in your favor.
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How do the credit bureaus obtain information?
Credit bureaus obtain identification and credit information from credit

grantors, such as banks, retailers, and collection agencies.
Bureaus obtain monetary-related public record information directly from

the court systems.
How long do the credit bureaus keep my credit

information?
• The credit bureaus keep your personal credit history for a period of
approximately ten years.
• Closed or Inactive Accounts - 10 years from the date of last activity.
• Derogatory Accounts - 7 years from the date of original

delinquency.
• Public Records - 7 years from the date of payment or indefinitely if

the Public Record is an unpaid tax lien.
• Chapter 7 Bankruptcies - 10 years from date filed.
Why should I check my credit report?
The information on your credit report can be used to determine whether or

not you are able to:
• Buy a new car

• Rent an apartment
• Get a loan
• Qualify for other credit.
• Obtain special employment
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By monitoring your personal credit report, you'll stay informed about your
current credit rating.. You'll know which businesses and credit grantors
have requested to view your credit report, which new accounts have been
activated in your name, and whether or not derogatory information has
been added.
Checking your credit also allows you to be alerted to information that may
have negative, long-term effects on your credit history—such as excessive
inquires and possible fraud.
By checking your credit report, you can discover possible inaccuracies in

your credit history. Correcting inaccuracies ensures that your credit report
is current and correct, which in turn helps speed the processing of your
credit requests.
How does the credit reporting system work?
The principles underlying the Fair Credit Reporting Act (FCRA) are to
ensure that this country's consumer reporting system functions fairly,
accurately and efficiently without unwarranted intrusions into consumer
privacy. These principles are even more important, in the face of
technology and computers that can provide instant access to vast
amounts of credit related information on consumers. (See end of report for
the full list of the FCRA).
How has the computer age affected the credit

reporting process?
Where once a credit grantor might have offered credit based on the
application of a handful of credit-related criteria, credit reporting today
often applies dozens of interrelated criteria. Although the creditor who
views your credit report may not see a paper copy of the credit file, the
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amount of information that he knows about you is almost limitless.
What are the laws governing credit bureaus?
Congress passed the Fair Credit Reporting Act (FCRA) in 1972 to curb the
abuses of the credit reporting bureaus. The FCRA is the governing
federal law on the issue of credit reporting.
The Fair Credit Reporting Act helps consumers promote and use their
right to make changes to credit reports. It is a requirement, under section
1681e, that:
(b) Whenever a consumer reporting agency prepares a

consumer report, it shall follow reasonable procedures to
assure maximum possible accuracy of the information
concerning the individual about whom the report relates.
Further, the FCRA provides a procedure in case of disputed accuracy,

under section 1681 i whereby a consumer can demand that an
investigation be made into the completeness or accuracy of any
information in a credit report. If the status of the information cannot be
determined, the data must be removed or corrected. The FCRA states:
(a) If the completeness or accuracy of any item of

information contained in his file is disputed by a consumer,
and such dispute is directly conveyed to the consumer
reporting agency by the consumer, the consumer reporting
agency shall within a reasonable period of time reinvestigate
and record the current status of that information unless it has
reasonable grounds to believe that the dispute by the
consumer is frivolous or irrelevant. If after such
reinvestigation such information is found to be inaccurate or
can no longer be verified, the consumer reporting agency
shall promptly delete such information. The presence of
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contradictory information in the consumer's file does not in

and of itself constitute reasonable grounds for believing the
dispute is frivolous or irrelevant.
You have the right under the FCRA to remedy all file information that is
irrelevant, improperly utilized, inaccurate, incomplete, misleading or does
not reflect your creditworthiness, credit standing or credit capacity.
One out of every three

(credit) reports contains
errors
Attorney General of New York
REMEMBER: THE PRACTICE OF CHALLENGING CREDIT DATA AND

SECURING CREDITOR-BASED TRADE LINE DELETIONS ARE
WHOLLY WITHIN THE PURVIEW OF THE LAW AND ARE THE
RIGHTS OF ALL CONSUMERS.
How does information get into a credit report?
When you enter into most credit relationships, you give the creditor the
right to provide information about you and your bill paying history to any
credit bureau by your signing the credit application. The information also
comes from public record sources such as tax and court records, your
employer (if a credit report is used for employment purposes), utility
companies and debt collectors.
Your creditors usually report information about you to the bureaus on a

monthly basis.
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This information contains details about how much you owe, your payment
schedule, the payment history and personal information including address,
phone number, date of birth, Social Security Number, spouse name and
employer.
Do I have the right to know what is in my credit file?
Consumers have the right to know what is in their credit files at credit
bureaus under the Fair Credit Reporting Act. Consumers are not,
however, entitled to obtain the actual report. Most credit bureaus will
furnish copies.
What are the addresses and phone numbers of the big-

three credit bureaus?
Equifax Information Services, LLC Trans Union

P.O. Box 740241 See below for address
Atlanta, GA 30374 800-888-4213
1-800-685-1111
Experian
National Consumer Assistance Center
PO Box 2002
Allen, TX 75013
888 EXPERIAN (888 397 3742).
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Mail your dispute to:

TransUnion TransUnion TransUnion de Puerto
P.O. Box 2000 P.O. Box 34012 Rico
Chester, PA Fullerton, CA Consumer Relations
19022 92831 P.O. Box 13968
Santurce Station
San Juan, PR
00907-3968
If you live in:
• Alabama • Alaska • Puerto
• America Other • American

than Canada Samoa
• Arkansas • Arizona
• Canada • California
• Connecticut • Canal Zone
• Washington • Colorado
D.C.
• Guam
• Delaware
• Hawaii
• Europe,
Middle East • Idaho
• Federated • Kansas
State of
Micronesia • Mexico
• Florida • Montana
• Georgia • Nebraska
• Illinois • Nevada
• Indiana • New Mexico
• Iowa • North Dakota
• Kentucky • Oklahoma
• Louisiana • Oregon
• Maine • Pacific
• Marshall • Palau
Islands
• South Dakota
• Maryland
• Texas
• Massachusetts
• Utah
• Michigan
• Washington
• Minnesota
• Wyoming
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• Mississippi
• Missouri
• New
Hampshire
• New Jersey
• New York
• North Carolina
• North Mariana
Islands
• Ohio
• Pennsylvania
• Rhode Island
• South Carolina
• Tennessee
• Vermont
• Virgin Islands
• Virginia
• West Virginia
• Wisconsin
How can I find out what Information is in my credit

file?
You are entitled under the Fair Credit Reporting Act to know the nature
and substance of all information in your credit file. The credit bureaus
comply with the law by giving consumers a written copy of the file,
sometimes for a fee.
If you applied for credit and were rejected, or you were denied insurance
or the cost of the insurance is increased based on information contained in
a credit report, the creditor or insurers denying you credit or insurance is
required by law to supply you with the name and address of the credit
bureau(s) who supplied the report(s).
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The credit bureau is required to disclose the information they have about
you free of charge, if you ask for the disclosure within 30 days (or 60 days
by federal order if TRW, Trans Union or Equifax) of being notified of your
credit or insurance denial. You can get in touch with the credit bureau,
either in person, by letter, or by telephone, to learn what is in your file.

!
• you certify in writing that you are unemployed and intend to apply for
employment within 60 days, or
• you are receiving public welfare assistance, or
• you have reason to believe your consumer file contains inaccurate
information due to fraud, or
• you have been denied credit, insurance, or employment within the past 60
days
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+

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REMEMBER: A CREDIT BUREAU MAY CHARGE YOU FOR YOUR

CREDIT REPORT IF YOU HAVE NOT BEEN DENIED CREDIT IN THE
LAST 60 DAYS. A COMPLIMENTARY COPY OF YOUR CREDIT
REPORT IS AT THE DISCRETION OF THE CREDIT BUREAU!
Who may obtain a copy of my credit file?
Only someone with permissible purpose under the Fair Credit Reporting
Act may see your credit file. Your file may be disclosed only to someone
who the credit bureau believes will use the information for one or more of
the following purposes:
• Granting you credit, reviewing your account, or collecting on your

account
• Considering you for possible employment
• Considering you for an insurance policy;
• Deciding whether or not you are eligible for a license, or other
government related benefits, which by law require consideration of
your financial responsibility or status (A credit bureau may also
disclose "identifying" information, limited to your name, address,
place of employment, and former addresses and places of
employment, to a government agency
• Furnishing information for a business transaction between you and
another person, such as renting an apartment, as long as the
person requesting the report has a legitimate business need for the
information
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• Responding to a court order; and

• Responding to an Internal Revenue Service subpoena. The IRS
must notify you of the request and give you time to challenge the
subpoena.
Your credit file may also be disclosed to someone if you give your written
permission to the credit bureau to disclose your file to that person.
REMEMBER: YOU DO NOT HAVE TO GIVE YOUR PERMISSION FOR

ANOTHER PERSON OR COMPANY TO OBTAIN YOUR CREDIT
REPORT!!!
How do errors occur and how frequently?
Depending on the source of your statistics, estimates of credit bureaus

errors run as high 90%. The Attorney General of New York State has
estimated that credit bureau errors are in at least one-third of all reports,
the United States Congress has estimated that errors exist in at least one-
half of all reports, a Consumers Union study found errors in 40% of credit
files and the Charles Givens Organization conducted a study in which
90% of the credit reports reviewed contained errors.
REMEMBER: EVEN ONE MINOR MISTAKE CAN CAUSE YOU TO BE

DENIED CREDIT!!!
Can I remove accurate credit information from my

credit report?
Yes, your credit report is intended to convey your overall

creditworthiness. It is not a verbatim transcript of your bill paying habits
nor does your creditor have to report any data about your account(s). The
Fair Credit Reporting Act is clear in its requirements that information must
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be deleted from a credit report even if it is accurate, if the information does

not properly convey your overall creditworthiness.
REMEMBER: THERE IS NO LAW THAT REQUIRES CREDIT OR BILL

PAYING INFORMATION TO BE REPORTED IN YOUR CREDIT
REPORT EXCEPT DELINQUENT CHILD SUPPORT PAYMENTS!I!
How can I add positive data to my credit report?
The purpose of adding positive data to your credit report is to build a

stronger base of positive data and to increase the overall creditworthiness
of your report.
Equifax will add positive trade references for a small fee (about $10).
The sources must be established and credible for Equifax to accept the
trade line, For example, if a consumer is a renter of a dwelling or property
and has made timely payments, add the reference to the credit report.
Contact the landlord to verify the positive status and then write to Equifax
to add the entry.
Not all creditors report credit data. Consistent with the provisions of the
ECOA, not all creditors report data because there is no requirement to do
so under the law. This fact can harm or help a consumer.
If the consumer has a good credit history with a source that is not currently
reporting or has not updated the trade line, contact the creditor directly in
writing and request that the positive data be added to the outgoing credit
information.
Establish secured credit. In the past few years many of the traditional
creditors have started to issue secured credit lines, which usually lead
directly into true credit in about one year.
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If you maintain a positive payment pattern without "maxing" out the card,
the creditors will take someone with marginal creditworthiness and offer
that consumer a true line of credit. The line may be nominal in value and
have a high interest rate, but any credit is good credit when trying to get
back into the system.
17 months ago I started with a $500 secured Visa. I made timely

payments and today the same creditor has issued me an unsecured line
on the same card of $8,600.
What should my goals be in credit restoration?
Each person has different needs for their credit report. Because a credit
report can be used for granting credit, insurance, employment or
government benefit you should define why you want or need the report as
part of the restoration plan.
Set incremental goals such as paying off one bill at a time and focusing
your efforts on the most negative credit report information.
REMEMBER: YOUR CREDIT REPORT IS ONLY ONE PART OF THE

CREDIT APPLICATION. FOCUS ON THE POSITIVE NOT THE
NEGATIVE AS YOU WORK TO RESTORE YOUR CREDIT!!!
Should I apply for credit while in the restoration

process?
NO. Each time you apply for credit an inquiry is recorded on your credit
report. Too many inquiries can, in and of itself, be a cause for you to be
denied credit.
Only when you are finished to your satisfaction, with the credit restoration
process, then you should apply for credit. Take the time to ask a potential
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creditor for the criteria used in making credit decisions to determine, in

advance, if you will qualify for their credit.
How long should the credit restoration process

take?
The restoration of your credit report is not an overnight project. You

should reasonably expect this process to take somewhere between four
and eight months, perhaps even a year. The delaying tactics and
obstacles of the credit bureaus will be used on an on-going basis to
prevent your restoration of the credit report.
REMEMBER: YOUR CREDIT REPORT HAS BEEN DEVELOPED

OVER MANY YEARS AND CORRECTING IT MAY TAKE SOME
TIME. BE PATIENT!l!
Why does the credit restoration process take so

long?
The Fair Credit Reporting Act requires that the credit bureaus conduct
their investigations of disputed information in a reasonable period of time.
Recent court orders and settlements give TRW, Trans Union and Equifax
only 30 days in which to complete their investigations of disputed
information.
REMEMBER: IF THE CREDIT BUREAU DOES NOT COMPLETE

ITS REINVESTIGATION OF DISPUTED INFORMATION WITHIN
30 DAYS, BY LAW IT MUST DELETE THE DISPUTED DATA
FROM YOUR CREDIT FILE!!!
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How many rounds of disputes should I expect to

undertake?
It is my experience that a minimum of three rounds of disputes are

usually needed to bring your credit report back into a good credit position.
This estimate will vary depending on the quantity and level of information
in your individual credit report. A round is defined as one dispute to each
of the three bureaus.
REMEMBER: BE PERSISTENT IN THE CREDIT IMPROVEMENT

PROCESS AND TAKE THE TIME NECESSARY TO DO THE JOB
PROPERLY!!!
What can I expect from the bureaus as I work

through the restoration process?
I have prepared samples of the most frequent credit bureau

correspondence and the appropriate responses for your use. Many of the
communications from the bureaus are efforts to stall your dispute. Don't
expect the bureaus to help you in clearing up your credit. The credit
bureaus make their money selling negative information to creditors, debt
collectors, lawyers and others.
REMEMBER: DON'T GIVE THE CREDIT BUREAUS ANY MORE THAN

THE MINIMUM POSSIBLE INFORMATION. YOU ARE NOT THEIR
EMPLOYEE AND YOU DO NOT RECEIVE COMPENSATION FOR
HELPING THEM DO THE WORK!l!
Credit bureaus can sell information about you

without your permission
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Are the credit reports all the same?
Your credit report from TRW, Equifax and Trans Union will all appear
differently and contain different data. Because these three companies
each have their own databases and do not regularly share data, what you
read in one report may not resemble what you find on another report.
REMEMBER: JUST BECAUSE YOU HAVE CLEARED UP

INFORMATION ON ONE CREDIT REPORT DOES NOT MEAN THAT IT
HAS BEEN DONE BY ALL THREE MAJOR BUREAUS!!
What's the worst thing that can appear on my credit

report?
There are basically ten things that look the worst on your credit report.
Here they are, listed from the best to the worst:
1. Credit inquiries
2. Credit rejections
3. Late payments
4. Past due and unpaid payments
5. Court judgments
6. Collections
7. Loan defaults
8. Repossession
9. Foreclosure
10. Bankruptcy.
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How to read and interpret your credit report
Each of the three major bureaus uses a different reporting form and
format. The descriptions below correspond to the bureau indicated at the
top of each description. Read the description while reviewing your report
directly. Reading your credit report without the description is confusing
and may cause you to not fully understand the depth of the data about you
in your credit file.
What is an inquiry?
An inquiry occurs when an entity requests a copy of your credit report.

These inquiries can be made by credit-granting organizations, such as
banks and retail stores, when you are applying for credit. Other inquiries,
from requestors such as insurance companies, potential employers, or
rental housing agencies, can be made after you have given the requestor
your consent. The entity's name will appear on your credit report, allowing
you to monitor who accessed your credit history. When you personally
check your credit report, the inquiry that is recorded will NOT adversely
affect your credit standing.
What is a Public Record?
Not all personal information is private — including Public Records. All

federal, state, and county courts make certain information public. This
includes information about legal matters affecting your credit. It works like
this: the courts record legal information, make it public, put it on your credit
report, and it becomes a "Public Record." The most common types of
Public Records include:
• Judgments against you in civil actions

• State or federal tax liens
• Bankruptcies
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Public Records stay on your credit report for seven years. If the Public
Record is a Chapter 7 Bankruptcy, it will stay on your credit report for ten
years. If you have a Public Record on your credit report, you can take
steps to ensure that you receive credit under the best possible terms. The
most important step is to make timely payments on your Public Records.
Set a goal for yourself: Aim to have your Public Records paid-in-full by a
certain number of months or years. By sticking to your payment plan,
you’ll prove to potential creditors that you are a creditworthy consumer.
What is a Revolving Account?
Revolving Accounts have open terms and varying payments. This means
that your monthly payments will vary depending on the balance of the
account. Examples of revolving accounts include all major credit cards
and credit cards from department stores.
Facts about Revolving Accounts:

• When you open a revolving account, such as a credit card account,
you are given a maximum amount that you can charge--a limit.
• It’s up to you how much of your limit you will spend.
• The amount that you owe will change each month, depending on
how much of your limit you have charged.
What is an Installment Account?
Installment Accounts have fixed terms with regular payments. If you’ve

ever had a car loan, student loan, home loan, or personal loan, you know
what we’re talking about. Let’s say your car payment is $300 per month—
this means that each month you pay the $300 installment.
Facts about Installment Accounts:
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• You owe a certain amount of money.

• You have to pay back a set amount of that money each month and
this set amount does not change.
• You also have a certain amount of time to pay off the loan.
EQUIFAX
1) All information appearing above the line reading "credit history"

is identification information. Moving below the "credit history"
line is the substantive information about your credit.
2) Read each trade line from left to right. The first item is the
"company name". This indicates who the creditor is that is
reporting data about your to Equifax. The next item is the
account number assigned by the creditor to the account. This
number may not be the same as the account number in your
records due to scrambling for privacy/security reasons or
creditor added numbers to segregate files by creditor office or
region.
3) The next item is "whose account". The code in this entry

corresponds to your involvement with the account. For example
the letter "S" indicates that you are an authorized user of the
account; the letter "J" indicates that this is a joint account and
that you share liability on the debt; the letter "I" shows that it is
your individual account and that you are solely liable for its
repayment; the letter "T" indicates that your involvement with
the account is terminated and "U" shows that the bureaus does
not know your relationship with the account.
4) The next column "Date Opened" is the date on which the

account was opened. This date may be different than your
records due to refinancing, creditor assignment of accounts,
company mergers or other creditor based activity.
Page 26

5) The next item "months reviewed" indicates the period of time that
the Equifax records cover. For example, if the account was
reviewed for 12 months, the credit data reflects only one year of
payment history.
6) The next column called "date of last activity" is one of the most
important parts of the trade line. The "date of last activity" is the
starting point from where the bureaus measure the seven years
that information may remain on your credit report. The date of
last activity is properly measured from the date when an
account went to collection, was charged to profit and loss (write-
off) or became delinquent.
7) The "high credit" column gives you the highest amount of credit
you have used on the account. This amount may be higher
than your credit limit.
8) The column shown as "terms" indicates the monthly payment on

the account. For an installment debt, the terms indicates the
fixed monthly payment that you agreed to in your contract. For
a revolving debt, like gasoline cards, Visa or MasterCard, the
amount is the minimum monthly payment. Most revolving credit
cards have monthly payments approximating 1/36th of the total
debt.
9) The next item shown as "balance" provides you with the amount
outstanding on the account. This may not reflect the actual debt
as of the date of the report, but indicates the balance
outstanding as of the date the information was provided to the
credit bureau.
10) The "past due" column shows the total amount of your account
balance that is delinquent, if any, as of the time the information
was reported to the bureau.
Page 27

11) The next column "STATUS" is the most important information in

the credit report. This item shows the actual rating of the entire
trade line. To begin, the status item will start with a letter. The
letter "R" stands for revolving, the letter "I" stands for
installment, the letter "U" indicates unspecified and "O" stands
for open. After the letter is a number indicating the manner of
payment for the account. The number "1" indicates timely
payment. The number"2" indicates that the account was paid
late but not more than 60 days past due. The number "3"
indicates that the account was paid late more than 60 days but
fewer than 90 days. The number "4" indicates that the account
was paid late more than 90 days but fewer than 120 days. The
number "5" indicates that the account was paid but more than
120 days late.
An account status with the number "8" indicates some form of

repossession activity. The number "9" stands for some form of
bad debt; either a charge off to profit and loss by the creditor or
referred for collection.
Reading the status codes from 1 to 9 provides you with a scale

of the relative detriment shown by each item. Starting with "1",
the best rating any item can have, going to "9", the absolute
worst rating available for any item, you can judge just how good
or bad any particular trade line is rated.
12) The final column "date reported" gives you the date on which
the information for the trade line was provided to Equifax.
13) Moving to the next line of the item, you will find the payment
status of the account. The indication "closed account" indicates
that the account is no longer open and that your relationship
with this account is terminated.
Page 28

14) The designation "prior paying history" gives you the details of
how your payments were made. Again, from left to right, the
space between the parentheses after the "30' indicates how
many payments were received 30 days late. The space
between the parentheses after the "60" indicates how many
payments were received 60 days late. The space between the
parentheses after the "90" indicates how many payments were
received 90 days late during the months reviewed.
15) The dates immediately after the 30-60-90-payment history

indicate the months on which the payment(s) were late.
16) Moving to the next line of the item, if any, you will find notations
about the account.
17) Reading further down the report will appear collection and
public record information may appear. For collections the data
should tell you what the collection is for, the amount of the debt,
when the debt occurred, to whom the debt was referred for
collection, when the debt was referred for collection and the
account number, if any, given to the debt by the collection
agency.
According to the credit bureaus' lowest figure for credit

report errors, more than 13 million people fall victim to the
mistakes of the bureaus each year
Page 29

TRANS UNION
1) Reading from left to right; the first item of information reported

under "subscriber name" is the creditor or supplier of
information.
2) The next item is the Trans Union code for the subscriber. This is
an internal reference for Trans Union and does not need to be
included in your disputes.
3) The next item "date opened" is the date on which the account
was opened. This date may be different than your records due
to refinancing, creditor assignment of accounts, company
mergers or other creditor based activity.
4) The "high credit" column gives you the highest amount of credit
you have used on the account. This amount may be higher
than your credit limit.
5) The next column provides the "date verified". This data is the
date on which Trans Union either received the data from the
creditor or the date on which Trans Union verified the data with
the creditor. The letter appearing immediately after the "date
verified" will indicate the meaning of the date. For example, the
letter "A" means that the data was entered in your file through
an automated transfer. This is simply the monthly reporting of
the account information by computer. The letter "V" means that
the data was verified as accurate with the creditor on that date.
The letter "M" indicates that the data was manually frozen on
that date.
6) The next item shown as "balance owing" provides you with the
amount outstanding on the account. This may not reflect the
actual debt as of the date of the report, but indicates the
balance outstanding as of the date the information was provided
Page 30

to the credit bureau.
7) The "amount past due" column shows the total amount of your
account balance that is delinquent, if any, as of the time the
information was reported to the bureau.
8) The "payment pattern" column is one of the most confusing parts

of the credit report. When this field is filled in, it indicates the
payments to the account for the last 24 months; the first 12
months in the top row and the second 12 months immediately
below in the next row.
The numbers in the "payment pattern" field range from 1 to 5 or

the letter "X". The number "1" indicates timely payment. The
number "2" indicates that the account was paid late but not
more than 60 days past due. The number "3" indicates that the
account was paid late more than 60 days but less than 90 days.
The number "4" indicates that the account was paid late more
than 90 days but less than 120 days. The number "5" indicates
that the account was paid but more than 120 days late. The
letter "X" indicates that no transactions were reported for that
month.
Credit Bureaus:
Public Enemy #1
U.S. PIRG
Immediately below the second row of the "payment pattern"

field, you will find 4 sets of numbers. Reading from left to right,
the first number indicates the total number of months that the
account has been reviewed. The next numbers indicate
respectively the quantity of payments more than 30 days late,
60 days late and 90+ days late during the months reviewed.
Page 31

9) The next column, to the far right with the heading "TYPE
ACCOUNT & MOP", is the most important information in the
credit report. This item shows the actual rating of the entire
trade line. To begin, the status item will start with a letter. The
letter "R" stands for revolving, the letter "l" stands for
installment, the letter "U" indicates unspecified and "O" stands
for open. After the letter is a number indicating the manner of
payment for the account. The number "1" indicates timely
payment. The number "2" indicates that the account was paid
late but not more than 60 days past due. The number "3"
less than 90 days. The number "4" indicates that the account
was paid late more than 90 days but less than 120 days. The
number "5" indicates that the account was paid but more than
120 days late.
44% OF COMPLAINTS (ABOUT CREDIT BUREAU ERRORS) WERE

ABOUT SOMEONE ELSE'S DATA MIXED IN WITH THE CONSUMER'S
REPORT...64% CONCERNED TOTAL STRANGERS
U. S. PIRG
An account status with the number "8" indicates some form of

repossession activity. The number "9" stands for some form of
bad debt; either a charge off to profit and loss or referred for
collection. The letter following the number designates the
current status of the item.
Reading the status codes from 1 to 9 provides you with a scale

of the relative detriment shown by each item. Starting with "1",
the best rating any item can have, going to "9", the absolute
worst rating available for any item, you can judge just how good
or bad any particular trade line is rated.
Page 32

10) Moving to the next line you will find the account number given
to this information by the creditor.
11) The next column shown as "terms" indicates the monthly

payment on the account. For an installment debt, the terms
indicate the fixed monthly payment that you agreed to in your
contract. For a revolving debt, like gasoline cards, Visa or
MasterCard, the amount is the minimum monthly payment. Most
revolving credit cards have monthly payments approximating
1/36th of the total debt.
12) The next item "credit limit" provides the maximum credit
extended or the total limit of credit available to you under this
account.
13) The next column is very confusing. The "date closed" entry
provides you with the date of last activity. The date of last
activity is the starting point from where the bureaus measure the
seven years that information may remain on your credit report.
The date of last activity is properly measured from the date
when an account went to collection, was charged to profit and
loss (write-off) or became delinquent.
If the account does not have collection, or write-off status, the

"date closed" entry will give you the date on which the account
was closed, paid off or when the last payment was made on the
debt.
14) The "maximum delinquency" item refers to a previously past

due account that is currently up to date. The item indicates how
much was past due at the point when the account was
previously delinquent.
15) Moving to the next line the code in this first entry corresponds
to your involvement with the account. For example the letter "A"
Page 33

indicates that you are an authorized user of the account; the

letter "C" indicates that this is a joint account and that you share
liability on the debt; the letter "1" shows that it is your individual
account and that you are solely liable for its repayment; the
letter "T" indicates that your involvement with the account is
terminated and "U" shows that the bureaus does not know your
relationship with the account.
16) The next item "collateral" provides you with the method by
which your debt is secured by the lender. In cases of automobile
or home loans, this line will give the property that supports the
debt.
17) The "remarks" item is a narrative of the account's current

status. If the account was placed for collection, closed,
transferred or has other available comments, such information is
entered at this location.
TRW - NARRATIVE
There are two types of reports generated by TRW. Your initial request for
a credit report should provide you with the TRW "narrative" report. This
report essentially gives you all the report information in easy to understand
wording rather than codes and symbols.
The other TRW report is printed with red and blue ink and is generated
with codes similar to the Trans Union or Equifax reports.
1) Reading from left to right, the TRW narrative report begins with a
column entitled "item". This simply is a follow along count to
enumerate and separate all items. All accounts with an asterix
"*" to the left of this column are considered negative.
2) The next column "account name" gives you the name of the
creditor or supplier of information, the address of that entity and
Page 34

the account number, if any, provided by the source the

information.
3) The "description" column provides you with information about the

opening date of the account. This date may be different than
your records due to refinancing, creditor assignment of
accounts, company mergers or other creditor based activity.
The "description" column next gives you the repayment terms. For an
installment debt, the terms indicate the fixed monthly payment that you
agreed to in your contract. For a revolving debt, like gasoline cards, Visa
or D, the amount is the minimum monthly payment. Most revolving credit
cards have monthly payments approximating 1/36th of the total debt.
The next item in "description" identifies your relationship to the account.

This will specify if you are individually liable, partially liable under a joint
account or other relationship to the account.
Immediately after the description of your relationship to the account is the

high credit or balance information.
4) The next column "status/payments" is the most important

information in the credit report. Instead of reporting your
account on the 1 through 9 scale like Equifax and Trans Union,
TRW describes in narrative form what has happened with the
account and the current status of the account.
Page 35

TRW - BLUE/RED CODED
1) The TRW report with blue and red ink is coded in the same
manner as Trans Union and Equifax. Reading from left to right,
the first column is "account profile". This field is divided into
three sections listed as "pos", "non" and "neg".
Any reference in the "pos" section indicates that the information

for that trade line is positive in nature. An indication of "non"
indicates that the trade line is neutral or not rated. The
designation "neg" indicates that the trade line is negative or
derogatory in nature.
2) The next item "subscriber/court name" is the creditor or supplier

of information.
3) The next item is the TRW code for the subscriber. This is an
internal reference for TRW and does not need to be included in
your disputes.
4) The next item is "assn. code". The code in this entry

corresponds to your involvement with the account. For example
the number "3" indicates that you are an authorized user of the
account; the number"2" indicates that this is a joint account and
that you share liability on the debt and the number "1" shows
that it is your individual account and that you are solely liable for
its repayment.
5) The "amount" column gives you the highest amount of credit you
have used on the account. This amount may be higher than
your credit limit.
6) The next item shown as "balance" provides you with the amount
outstanding on the account. This may not reflect the actual debt
as of the date of the report, but indicates the balance
Page 36

outstanding as of the date the information was provided to the

credit bureau.
7) The next item "account/docket number" is the account number

assigned by the creditor to the account. This number may not
be the same as the account number in your records due to
scrambling for privacy/security reasons or creditor added
numbers to segregate files by creditor office or region.
8) The "payment profile" column is one of the most confusing parts

of the credit report. When this field is filled in, it indicates the
payments to the account for the last 24 months; the first 12
months in the first row and the second 12 months immediately
below in the next row.
The numbers in the "payment pattern" field go from 1 to 5. The

number "1' indicates timely payment. The number "2" indicates
that the account was paid late but not more than 60 days past
due. The number "3" indicates that the account was paid late
more than 60 days but fewer than 90 days. The number"4"
fewer than 120 days. The number "5" indicates that the account
was paid but more than 120 days late.
9) Moving to the next line, the first item is the "status comment".
This is a narrative of the account's current status. If the account
was placed for collection, closed, transferred or has other
available comments, such information is entered at this location.
10) The next item is the "status date". This entry provides you with
the date of last activity. The date of last activity is the starting
point from where the bureaus measure the seven years that
information may remain on your credit report. The date of last
activity is properly measured from the date when an account
went to collection, was charged to profit and loss (write-off) or
Page 37

became delinquent.
11) The next item "date opened" is the date on which the account
was opened. This date may be different than your records due
to refinancing, creditor assignment of accounts, company
mergers or other creditor based activity.
12) The column "type" gives you the type of obligation most
appropriately describing this account. This line will indicate
whether the account is secured, a charge card, auto, home,
etc...
13) The "terms" column next gives you the repayment terms. For
an installment debt, the term indicates the fixed monthly
payment that you agreed to in your contract. For a revolving
debt, like gasoline cards, Visa or MasterCard, the amount is the
minimum monthly payment. Most revolving credit cards have
monthly payments approximating 1136th of the total debt.
14) The next column provides the "balance date". This data is the
date on which TRW either received the data from the creditor o-
[r the date on which TRW verified the data with the creditor.
15) The "amount past due" column shows the total amount of your
account balance that is delinquent, if any, as of the time the
information was reported to the bureau.
REMEMBER: DATA CHANGES CONSTANTLY. IF IT IS REPORTED IN

A CERTAIN WAY TODAY, IT MAY BE DIFFERENT TOMORROW!l!
Page 38

What are the notations on my credit report

supposed to mean to me?
The codes and statements on any credit report are supposed to be clearly
defined and explained by the credit bureau issuing the report. As you
have probably already determined, the credit reports are almost
impossible to read and even more difficult to decipher.
24 out of 25 credit reports contain errors

Charles Givens Organization
Following list is intended to explain what most of the credit bureau

definitions actually mean. As with most definitions regarding competing
products, there will inevitably be some variation.
Late Pay/Delinquency - An indication that payments to an account were

not made on a timely basis. For installment loans, it indicates that
payments were not paid by the contractually stated date. For revolving
accounts, it indicates that the minimum payment was not made by the
date required by the creditor.
Paid Was Late - This notation indicates that an account was in a late
pay/delinquency status but was brought up to date.
Paid Was Delinquent - This notation indicates that an account was in a

late pay/delinquency status but was brought up to date.
Charge Off - This notation provides that the account has been taken off
the creditor's books and is considered un-collectible. A charge-off is
considered a loss and is deducted from a creditor's profits.
Paid Charge Off - This references an account that has been taken off the
creditor's books but has been subsequently paid by the consumer. The
notation indicates that the debt has been satisfied and does no longer
Page 39

owe.
Collection (paid/unpaid) - This indicates that an account was placed

either to an in-house department or outside third party for the purpose of
collecting past due amounts of the debt.
Judgment - The binding opinion of a court entered on behalf of a party

involved in a lawsuit. In credit reports a judgment normally shows against
the consumer. A judgment means that a consumer is liable to another
party for the amount of the judgment. A judgment is the official and
authentic decision of a court of justice upon the respective rights and
claims of the parties to an action or suit therein litigated and submitted to
its determination.
Satisfied Judgment - Where a judgment has been ordered, this

reference indicates that the consumer has paid/extinguished the obligation
imposed by the court through the judgment issued.
Closed Account - Reported by Subscriber- This notation reads that the

account is no longer in existence and the consumer is unable to use that
account to incur debt. It also indicates that the creditor closed the account
because the creditor chose to no longer do business with the consumer.
This line indicates a negative connotation regarding the data.
Tax Lien - This refers to a tax obligation that has not been paid and has
had a lien placed against the assets or holdings of the consumer.
Paid Tax Lien - This shows that a tax obligation resulting in a lien has
been satisfied and that the consumer is no longer liable for the tax
obligation.
Bankruptcy - Indicates that the account was involved in a bankruptcy

proceeding. This does not necessarily state that the account was
discharged, only that the account was included in some form of action.
Page 40

Discharged in Bankruptcy - This notation states that the account was

included in bankruptcy and that the debt was extinguished by virtue of the
bankruptcy court discharging the consumer from further liability on the
debt.
Foreclosure Process Started - This means that the consumer is in

default of the mortgage and the creditor is in the process of seizing the
property.
Foreclosure - Indicates that due to default, the creditor had to seize and
sell the property to satisfy the mortgage debt.
Deed in lieu - The consumer has defaulted on a mortgage and the

creditor has accepted the deed to the property in lieu (or exchange) of
seizing the property and selling it at auction to satisfy the debt.
Subscriber Cannot Locate - A notation normally indicating a defaulted or

delinquent obligation in which the creditor retains a collection interest but
is unable to locate the consumer to enforce the collection.
C or Current - The account is current as of the date reported.
1 - The account is or was 30 days past due.
7 - Making regular payments under wage earner plan or similar

arrangement.
Page 41

8 - Repossession. This account indicates a debt held with a security

interest. Where repossession is shown, it means that the creditor took
the property securing the debt back. If the trade line indicates
Voluntary Repossession it means that the consumer returned the
security interest to the creditor before it had to be taken back by the
creditor.
9 - Seriously delinquent/bad debt. This notation shows that the account

loan has not been repaid in a long time or that the debt is considered
un-collectible and is a bad debt.
R - Revolving Account. This notes that the account has or had a variable
balance and payment structure. Most Visa and MasterCard are open-
end credit cards, which allow one to pay a minimum or any amount
above that level without a fixed dollar amount each month.
I - Installment Account. This means that the account has a contractually

fixed payment structure with a specific fixed dollar amount due (usually
each month) and a particular due date. Examples of common
installment accounts are mortgages, auto loans, furniture, appliances,
boats, etc...
Joint Account - Account made with two contractual parties. Both parties
assume ultimate liability for the repayment of the obligation.
Authorized User - Indicates that the consumer is entitled to use the

credit card of another person. An authorized user does not incur any
obligation to repay the debt nor assume any contractual obligation to
make payments on the account.
Profit and Loss Write-off – Is a Bad debt where the creditor has
accepted the amount as a loss of the amount against the profit of the
company.
Page 42

Above Item Deleted - TRW's indication that disputed data was removed
from your credit report.
Creditor Did Not Reply - TRW's indication that in response to your

dispute, it undertook an investigation and did not hear back from the
source to verify the data. The result is that the disputed data was
removed from your credit report.
Item Changed As Above - TRW's indication that in response to your

dispute the data has been verified but with modification. The change to
the trade line is indicated as noted in the updated report.
The credit bureaus are for-profit and make billions of

dollars each year
Above Item Remains - Confirmed by Source - TRW's indication that in

response to your dispute of data, TRW has contacted the source of the
information and verified that the data is accurate as reported.
Above Item Deleted From File - TRW's notation that the item of
information listed was disputed. During the course of the reinvestigation it
was determined that the data could not be verified and was then removed
from the credit file.
Above Item Deleted From File - Duplicate - TRW's notation that

information in the file was multiple entries for a single trade line and that
the duplication has been deleted.
Credit Line Closed - Grantor Request - Reported by Subscriber -

TRW's notation that the account has been closed by the creditor. The
notation is to be construed as negative in nature.
Page 43

What if the credit report is not TRW, Trans Union or

Equifax?
The overwhelming majority of legitimate credit reports issued in the U.S

are derived from data from TRW, Trans Union or Equifax, known as the
big-3. Many times you will receive a credit report from a credit bureau
other than the big-3.
Usually, an affiliate bureau of the big-3 issues the credit report from a
bureau other than the big-3. An affiliate is essentially an entity that taps
into the database of the big-3 and issues a credit report under its own
name. The identity of the actual big-3 credit bureau can usually be found
at the very end of the credit report.
Although the credit report may be issued from an affiliate bureau, the
reading and meaning of the data is the same as if the data were issued by
one of the big-3 bureaus.
Page 44

PART II
Strategies you must know before you embark…
As we discussed in the previous section, you should not fear

the Credit Bureaus. They are nothing but (IC) Information
Collectors. And by the way, they profit from that.
Transunion made 1.5 Billion dollars in 2001
So,
Here’s what you need to know:
• The Credit Bureaus and the Creditors cannot just insert

anything they want to your credit report. But that doesn’t
mean it does not happen either. Credit Bureaus have 30
days to remove any unverifiable items, and it’s the LAW.
• You can challenge any and all items that are contained in
your credit report. Each and every time the Credit Bureau
must re-investigate. But again, it does not mean that they
do it. In my experience with dealing with them, I have
found that sometimes (after several disputes in a row)
they will send you a letter stating that it was already
investigated on Date XX-XX-XXXX (prior date of your
dispute).
• There are 2 ways that items on your report can be erased:
Page 45

o The first one is the most common – Creditors must

verify the items they have reported to the Bureaus.
If they don’t, then it must be deleted.
o The second might come through input errors. We

are all humans and Credit Bureau computer
operators are no different.
Simple Step by Step instructions to Repair Your

Credit
1. You will need to obtain your three credit reports. If you have
been turned down recently you can use that letter to get a free
copy of your credit report. The only problem will be that it is for
only one credit bureau. You can order and download your 3
reports immediately over the Internet today by Clicking Here.
2. By getting your 3 (or merged) credit report you will instantly

see all the credit reporting that different vendors and creditors
have reported to the Credit Bureaus.
Note: Each item may not be reported on all 3 Credit Bureaus and
you might even find that some creditors don’t even report any
information (that’s good or bad depending on your standing with
that creditor)
3. The first thing you will do and over the next few months will
be to dispute all of your negative items to each of the 3 major
Credit Bureau. You will write one letter per Bureau and list all of
Page 46

the negative items you want to challenge. See list of letters

attached at the end of this eBook
4. Mail your 3 letters. Within 10 days you will get 2 or 3 letters

from the Bureaus indicating that they have received your letter,
are investigating your dispute and will include a “nasty” page
about how “illegal” it is to use a Credit repair Agency. Don’t
worry – it is not illegal and by the way, you are doing it yourself.
They just try to frighten you so that you stop bothering them.
5. In about 4 to 5 weeks you will get your credit report back

from each agency. Your new reports will indicate what action
they have taken with each disputed item. Items that were not
verified by creditors or have taken longer than 30 days will be
removed. Others will remain.
6. You will need to repeat each and every month. Your letters
are saved, so all you need to do is delete the items that have
been removed, print the letter and mail.
7. Stop around early September. Read #8 for explanation.
8. During the busy times of the holidays, creditors are swamped

with credit applications and thus are less likely to get to your
“bothersome” request on time. I advise you to re-start your
disputes around the second week of November which gives you a
2 month window – meaning your next letter should be sent
around the second week of December.
9. Some creditors keep good records and will not be deleted. I

advise you to negotiate. Negotiate a payoff amount in return for
their removal of their information from the credit report. PS:
They can do that, it’s within their power, even if they tell you
that they can’t do it. - Get it in writing!
Page 47

10. An important note: After you send your first dispute, the
bureaus may ask you to fill out a preformatted form. DO NOT in
any case use their form. Just write your letters on a blank piece
of paper and include your name, SS# and address. Include the
items you are disputing. DO NOT use any of the Credit Bureaus
reference #’s. – PERIOD!
Federal Laws are in your favor!
The Federal Fair Credit Reporting Act. Is the law that governs
credit, creditors and Credit Bureaus and what protects you from
unfair practices.
• The law states that the Credit Bureaus must verify the
correctness of your information with the creditors that
reported the information within 30 days. If the Bureau is
unable to verify the information within 30 days, it must be
removed.
• The Fair Credit Reporting Act states that a consumer has

the right to dispute, correct and update their credit file.
• None of these laws mean anything if you do not put them

to use. You must get started today.
You have Rights under the Fair Credit Reporting Act
1. Every time you dispute your report with the Credit Bureau,
they must investigate or re-investigate your claim. They don’t
always do that and you should remind them that under the Fair
Credit Reporting Act they must do so or be legally liable.
Page 48

2. You can dispute items in your credit report any time and it is
your right to do so.
3. The Credit Bureaus have 30 days to investigate your claim.
4. If the credit bureau does not get a reply form the creditor
within 30 days, they must delete that information immediately.
5. If the credit bureaus find an error in the item challenged, they

must correct that information immediately.
Remember: Credit Bureaus don’t really care what’s in your

report. They get paid by big business to pull your file. They are
just record keepers.
Personal Experience: It took me several months to clean my

credit file. What I did not know was that when the Credit Bureau
said they verified the information on xx date previously, they
meant that all they did was look at their previous notes (from
the previous dispute) and re-verified the same findings. When
you see this happening, include in your next letter that under
the FCRA they are compelled to verify that the item is correct
with the creditor and not just in their files.
• Make sure you keep a small log of when you sent the
letters and their results.
• Use Certified mail and get a return receipt.
Have patience. You will prevail. You can repair your credit even
if the items contained are correct just through sheer persistence.
Page 49

Eventually creditors want you to go away, so they will stop

responding to the Credit Bureaus. Some creditors do not keep
older files handy and “for sure” would not spend the time and
energy of their staff looking for old records.
• Check your credit report each time. Record what was

deleted and re-dispute the remaining items.
• Repeat, Repeat, Repeat!!!
• Be persistent. Even if the Credit Bureaus tell you that all

your items are verified and correct, just keep hammering
them. You will make progress over time.
The easy items to remove
If you’re items fall in these categories, you’re in luck. They are

much easier to remove than the other category.
• Bankruptcies that are discharged, irregardless of Chapter 7, 11 or

13
• Any account that is older than 2 years or has had no activity in the
last 2 years
• Inquiries
• Repos.
• Collection accounts
• Late payments
• Paid off accounts
Page 50

And the hard ones are:
• Fresh Bankruptcies (3 years or less)

• Pas due and current accounts
• Judgments and legal actions
• Unpaid Collection accounts
• IRS Tax Liens
• Child Support
Note: You should always dispute all the items. Although I have
categorized items as easy or difficult to remove, you need to
challenge all the items over and over. You will get results!
Detailed step-by-step actions:
Step 1: Get your 3 credit report and identify the derogatory items. Click
here to download your tri-merge report
Step 2: Write and send your dispute letters.
Step 3: After receiving your updated files (30 or so days) review them and
prepare for the next round.
Step 4: Removing items that were verified by the Credit Bureaus
Step 5: So, you’ve done all the steps above and the creditor has supplied
you with proof.
Step 6: No money to settle – No problem
Step 1: Get your 3 credit report and identify the derogatory

items
• Click here to order and Download your tri-merged report

• Identify the derogatory items and categorize them by each
one of the 3 Credit Bureaus.
Page 51

Step 2: Write and send your dispute letters.
• You will be writing 3 letters, one for each of the major

Credit Bureaus
• In each letter list all the items you want disputed.
• Mail your 3 letters certified and with a return receipt
• In about 10 days you will get a letter from 2 or all of the
Credit Bureaus indicating that they are investigating your
claim
• Wait 30 days to receive your updated credit report.
• You will receive one report from each of the Credit Bureau.
Step 3: After receiving your updated files (30 or so days)

review them and prepare for the next round.
• Review each of your new credit files

• Hopefully, some items have been removed.
• If not, do not get discouraged. Your persistence will pay
off. Just look at it as a game that you eventually win.
• Open up your 3 saved letters, delete the items that
have been removed, print and send.
• DO NOT use the Dispute Forms attached with your
updated credit report that they sent you. It's much
more effective to easily follow the outlines of the
sample letters included in Bonus #1. These letters
have been proven effective time and time again.
• When disputing items, do not give reasons. Creditors
and Credit Bureaus do not care. Just say that these
items are not yours or that you never applied for credit
with them.
Remember: Good credit items will always outweigh bad items,

so as bad items are removed, you need to start building good
credit. Secured Credit Cards are a great way to start. Click here
to go to erasingbadcredit credit link site
Page 52

Important:
• Negative item that you want removed from your credit, such as a
bankruptcy, charge off or collection account, you want to write that
this is NOT your account and you want it removed immediately.
• If your account is now paid off or you have settled, but was
delinquent or late at one time, write that it is your account but was
NEVER past due and you need it updated to reflect that.
Step 4: Removing items that were verified by the Credit

Bureaus
Are you an attorney?.. Not! – No problem – Use their

tactics and get over your creditors….
Follow the instructions you'll get similar results as any attorney (you just
won't have to pay).
• When the Credit Bureaus verified your disputed items as valid or

correct you still have recourses. Contact the creditor that you want
removed from your report and ask (require) that they send you
proof (must be written) that it is your account.
• Give the creditor 7 days to get the documentation and proof to you.
If you do not get anything in 10 days follow the steps below.
You must contact the Attorney Generals Office in the city of the
creditor who is damaging your credit.
• Get the phone number through directory assistance.
Page 53

• You have requested proof that the account belongs to

you and they do not have it. They are damaging you
credit and this account is not yours.
• They will contact the creditor and take care of it. This
technique guarantees they will get the item removed.
Take the Creditor to Small Claims Court.
• Call your county courthouse and get all the information

on filing a claim. You can do it all yourself.
• You will fill out the forms and write that you wish to
remove the item from your credit file since it is not yours
and the creditor has no proof that it is your account.
• Make sure you attend on the court date or you will loose
by default. Bring in the receipts from the registered mail
you used for your disputes any other expenses you have
incurred
• Remember, if they do not have proof that this is your

account you will win and the account will be removed
from your credit file! Also, if the creditor is out of state
and does not show in court, you win by default.
OK, let’s move on….
• Most of the time, creditors will not come up with the original
documents that you filled to get credit. They enter all the
information in computers and either file the paper somewhere or
destroy it, which is to your advantage.
Page 54

• Federal Law requires that upon your request, all creditors must
show you written proof that the account in question is yours. Written
proof is a copy of the contract you signed with the original creditor.
• The only creditors that may have proof are the courts (Recent
Bankruptcies, unpaid Tax Liens, unpaid Judgments & unpaid Child
Support).
• The older a bankruptcy is the easier it is to remove, since it gets

filed in a warehouse somewhere over the years and is hard to bring
back out.
Step 5: So, you’ve done all the steps above and the
creditor has supplied you with proof.
• Call them and negotiate
• Creditors would rather settle for some of the money than none at
all.
• Creditors will usually settle for 50% of what you owe them, but you
need to start at 10%, meaning offer them to settle for $10 for every
$100 you owe them.
• If they are not willing to negotiate, tell them that you are close to
filing for bankruptcy, that you have no assets and that they will get
nothing.
• Always settle for less than what you owe them.
• IMPORTANT: Your credit is already damaged by them. Paying off

your account in full will not change your credit scoring number, thus
you should settle for less than what you owe.
• Only settle for a percentage of the original amount, do not get

Page 55

suckered into paying late fees or other charges.
• One last thing: Try to negotiate that in return for the agreed
payment, they will remove the account from the credit report or not
show it as late. Get it in writing BEFORE you send the payment.
• Remember the last point is worth a shot. It’s worked for me in a

couple of instances. Not all creditors will agree to do this but some
will.
• Note: Some creditors or Collection Agencies may tell you that it’s
against the law to remove your account or change it in any way.
It’s bull. They can do whatever they want and it’s within their realm.
Step 6: No money to settle – No problem
• Start over from the beginning.
• Keep sending dispute letters and eventually the stubborn ones will
be removed
• Be persistent – You will prevail!
REMEMBER: YOU ARE NOT REQUIRED UNDER THE FAIR CREDIT

REPORTING ACT TO PROVIDE A REASON WHY YOU DISPUTE
DATA. GIVING A CLEAR AND SPECIFIC REASON WILL ONLY HELP
TO SPEED UP THE DISPUTE PROCESS AND RESOLVE YOUR
COMPLAINT! BUT NOT IN YOUR FAVOR!
Page 56

A word about………..
CCCS: Consumer Credit Counseling Service
So you have money problems and aren't sure what to do? You caught a
television commercial about consumer credit counseling service saying
how they can help you and it's FREE. What could it hurt just to go talk to
them? The answer is plenty. CCCS is a "non-profit" organization funded
partially by the United Way. That's nice and everything but the bottom line
is that it isn't FREE.
CCCS charges a fee for their "debt counseling service". That fee is
usually a flat rate per month. You pay them to negotiate with your creditors
and put you and your family on a budget. I don't mean to sound to
sarcastic but if you can't do that yourself you shouldn't have gotten credit
to begin with. It's OK to have made a mistake financially. It's definitely OK
if you were caught off guard by some unforeseen event. But if you need
these people to straighten it out for you your problems are bigger than you
think. So here's the bottom line.
• CCCS has more than 1200 offices nationwide.

• They get over $150Million from donations each year.
• They serve about 800,000 Americans annually.
• Each person pays an average monthly fee of approximately
$20.00
• They make about $160Million from those fees.
• They collected over $1.4Billion last year from consumers.
• They get $130 Million by keeping 12% of what they collect.
• Most of their office space, furniture, and computers are
donated.
Page 57

• They do not guarantee that your credit will be restored after

the program.
• No creditor of yours is obligated to agree to the program.
• They will tell you that it is impossible to fix your credit.
• Most important of all, when you are done with the program you
will still have bad credit only now it will stay for an
ADDITIONAL 7 years! Need I say more!
%

!
1. personal data
2. bankruptcy
3. consumer credit counseling

4. foreclosure
5. loan default
6. repossession
7. court judgments
8. collections
9. past due payments
10. late payments
11. credit rejections
12. credit inquiries
Page 58

Q. What is Secured Debt?

A. A Secured Debt is a loan where the creditor retains a security interest
in an item of real or personal property such as a house or an automobile.
If you fall behind on payments on this type of debt, the lender has the
ability to repossess the property in order to mitigate their damages. It is
important to remember that you could remain liable for any deficiency
balance owing after the property has been repossessed and sold. Certain
exceptions may apply and will depend on the exact nature of the security
interest. The laws regarding home mortgages vary from state to state and
the lenders rights generally depend on the terms of the mortgage and
whether any other lenders have an interest in the Real Property. In these
situations it is important to seek competent legal advice to protect your
interests
Q. What is an Unsecured Debt?

A. An Unsecured Debt generally arises out of a contract you enter into
with a creditor that enables you to obtain goods or services on credit in
exchange for your promise to pay that creditor back. The most common
types of unsecured debt are: credit cards and personal loans. If you fall
behind on this type of debt, the only recourse the lender has is legal action
Q. When does a Secured Debt become an

Unsecured Debt?
A. A secured debt may become an unsecured debt in situations where

the property securing the loan has already been repossessed and sold by
the creditor. If the sale of the property does not cover the contractual
obligation, a deficiency balance is owed by the consumer. This deficiency
balance then becomes an unsecured debt. Certain exceptions may apply
and will depend on the exact nature of the security interest.
Page 59

Beware….
There are several scams out there promising you a clean credit file in 24
hours. This method uses illegal method and can land you in hot water.
Such a method is called:
• File Segregation:
New ID Is a Bad Idea
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Page 60

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Page 61

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Page 62

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REMEMBER: THE GOAL IN DISPUTING INFORMATION IS THE

DELETION AND PERMANENT REMOVAL OF DATA, NOT
EXPLAINING YOUR SIDE OF THE STORY OR THE REASONS FOR
LATE PAYMENTS!l!
Page 63

Reasons To Dispute Data
• Inaccurate
• Incomplete
• Duplicate
• Included in Bankruptcy
• Misleading
• Not Mine
• Expired
• Improperly Utilized
• Paid Off or Incorrect Balance
• Does Not Reflect Creditworthiness
• Does Not Reflect Credit Standing
• Does Not Reflect Credit Capacity
• Faulty Billing Procedures
• Biased Information
• Mixed File
• Authorized User
• Other
These reasons are for you to decide why you are challenging the date.
You MUST NOT give those reasons or any other to the Credit Bureaus
when challenging negative data.
More than one million people use a credit repair

service each and every year
Page 64

48% of all (credit reports) contain inaccurate

information
Consumers Union
REMEMBER: ANY AGREEMENT YOU MAKE WITH ANY CREDITOR

OR DEBT COLLECTOR SHOULD BE IN WRITING TO PROTECT
YOU!!!
What this all means is that you can agree to a settlement with a collection
agency or creditor that says you will repay the debt if the other party will
remove the record of that debt from your credit report. Many creditors and
debt collectors will attempt to deceive you by stating that they are required
by law to report this information to the bureaus.
REMEMBER: A CREDITOR OR DEBT COLLECTOR HAS NO LEGAL

OBLIGATION WHATSOEVER TO REPORT ANY INFORMATION
ABOUT YOU TO ANY CREDIT BUREAU!I!
How do I build credit?
An important element to the restoration of your credit is not only the

removal of negative information but also the addition of positive data.
A secured credit card is a quick and easy method to reestablish or build

credit. Secured credit works by your placing money into an interest
bearing savings account with a bank or credit card issuer and the bank or
credit card issuer in return extends you credit equal to the amount on
deposit. The principle behind secured credit is that the bank is extending
you credit but it is supported by your deposit.
Page 65

Start Here to start rebuilding your credit.
What if the credit bureau refuses to accept my

dispute saying that I'm using a credit repair clinic?
You may encounter a credit bureau refusing to accept your dispute

because they believe that you have used a credit repair clinic or other
method to help restore your credit.
The credit bureau cannot refuse to accept your dispute because you have
sought third party assistance. In fact, in a case known as Milbauer v. TRW
the court held that third party assistance “furthers the goals" of the Fair
Credit Reporting Act and is the fundamental right of all consumers. (use
letter 1.78)
What are the primary reasons for the denial of

credit?
There are several obstacles that can cause a rejection of a credit

application. The dominant six reasons are: no credit history, negative or
derogatory credit, excessive inquiries, over-extended, self-employed, and
public record information.
1. No credit history. This pertains to a person who has never had

any credit that appears on a credit report. When a credit report is
run on an individual, and there is no payment pattern or history, the
credit report will come back as "No Record Found." This is almost
as severe as having had bad credit, because a credit grantor
cannot determine your payment Pattern and therefore cannot
evaluate your creditworthiness.
2. Negative or Derogatory Credit. When a credit report is made, the
Page 66

report has codes, which rate the items on the report as either
positive or negative. The negative items that appear most are
late/slow pays, charge-offs, delinquencies, collections,
repossessions, judgments and tax-liens.
3. Inquiries. When you apply for credit, the creditor usually obtains a
credit report about you to evaluate your creditworthiness. It is then
reported that an inquiry was made on a specific date by that
company. Excessive inquiries within a six month period will hurt
your
REMEMBER: IF YOU MAKE LATE PAYMENTS OR DEFAULT ON A

SECURED CREDIT OBLIGATION, IT WILL APPEAR AS NEGATIVE
DATA ON YOUR CREDIT REPORT!I!
REMEMBER: IF YOU ARE A CO-SIGNER OR AUTHORIZED USER ON

A CREDIT OBLIGATION AND THE PRIMARY HOLDER MAKES LATE
PAYMENTS OR DEFAULTS ON THE LOAN, IT WILL APPEAR AS
NEGATIVE DATA ON YOUR CREDIT REPORT!l!
REMEMBER: IT IS NOT NECESSARY TO REMOVE 100% OF THE

NEGATIVE DATA IN A CREDIT REPORT TO GET NEW CREDIT!l!
What if you don't get any results?
It is not unusual to have your correspondence or disputes with the

bureaus ignored. It is your legal right to have a fair and accurate credit
report. If you find that you are not making any progress with the credit
bureaus, don't become a victim.
Take the initiative and call the bureau's attorneys and inform them of your
disputes. It is the job of these attorneys to protect the company from
consumer complaints and problems. By working with them directly, you
Page 67

are using the highest available resources of the credit bureau.
Page 68

BONUS #1
Template Letters to dispute with Creditors and

Credit Bureaus
1. General Dispute To Collection Agency

2. Dispute of Collections
3. Dispute to Collection Agency
4. Negotiating a Settlement
5. Negotiating a Settlement with Utility Companies
6. Negotiating a Settlement with Creditors
7. After No Response from a Credit Bureau
8. Disputing Specific Items and Inquiries
9. Request Reinvestigation of Items that are Still Showing on
report
10. Answer Letter to Credit Bureau's Request for More Information
Page 69

1. General Dispute To Collection Agency
Date
Collection Agent
Address
RE: Acct. # ...
To whom it may concern:
When living in Ohio, I received service through ________________

Telephone Company. During that time, there were numerous billing errors. I
kept being mixed up with another family. Though time consuming and
aggravating for me, the phone company always found and corrected the
errors.
Before moving to New York, I stopped service and paid the final bill. I never
thought I would continue to be plagued with __________________
Telephone Company errors.
I am sure if you speak to a human being and not a computer at

________________ Telephone Company, there will be a record of the
problems we were having with wrong billings. I am also certain you will
discover this is not my debt.
Though I was assured by the phone company at the time that my name was
not the cause of the errors, I'm not so sure.
I would truly appreciate your assistance.
Sincerely,
Your Name
Address
Page 70

2. Dispute of Collections
Date
Credit Bureau
Address
RE: Acct. #...
Dear (Credit Bureau Name):
I have just received my credit report and have noted that it contains
erroneous information regarding the following accounts. I would like them
deleted from my record:
Collection Account ______________This is not correct, please remove.
1st Nationwide Mortgage - This is not mine.
Mobil Oil (acct. # ______________) When I questioned Mobil Oil about this
account,
they told me they requested this be removed from my credit report. How
were you able to confirm it?
American Express ___________________ This is not mine
Sears _______________ This was not mine
Lamont Furniture ____________ This is not mine.
Please re investigate and delete these disputed items. 30 days constitutes a

reasonable time to check these out. Please notify me if it takes longer. Please
send names and business addresses of those persons you contacted for any
verifications Also, as per the Fair Credit Reporting Act, please send me
notification that the items have been deleted. Please send an updated copy of
my credit report to the following address:
Sincerely,
Name
Address
Social Security Number
Page 71

3. Dispute to Collection Agency
Date
Name _______________
Collection Agent
Address
RE: Account number __________________
Dear _______________:
Your company is showing a collection account number __________, on my
credit report that I have no knowledge of. You are listing the client as
___________________.
Please explain this account and who your client is. I do not agree that this
belongs to me and this is the first I have heard about it.
Your cooperation in this matter is greatly appreciated.
Yours truly,
Name
Address
Page 72

4. Negotiating a Settlement
Date
Creditor
Address
RE: Account # __________________
Dear Creditor:
I am writing to request assistance in correcting erroneous information

pertaining to my accountant #__________________ shown on my credit
report.
I was involved in a traumatic divorce which necessitated leaving my home. All

outstanding accounts were to have been taken care of in the proceedings.
With changes to my address and marital status, perhaps any billings that
were sent, concerning unpaid accounts, missed me.
While trying to rebuild my life, I discovered these accounts such as yours that
were never settled. I am trying to correct my credit after going through this
set back by trying to settle these accounts, and doing the best I can.
The outstanding account # ________________ has a balance of $2296.00

which is a large sum for me at this time.
I am writing to inquire if there is any hope for a reduced amount to satisfy the
account in full. In this way I may realistically be able to settle this outstanding
balance with you.
I am also concerned about the negative information now on my credit file. I

am advised this negative information you have placed on my files could
remain in my credit reports for 7 years after payment is made. However, I
have the right to remove any information from this credit report through the
suppliers of information.
I am requesting, because of my horrible situation, your company notify the

Credit Bureaus to delete this account from my files when paid in full, as it
does not reflect my personal willingness to pay my debts.
Thank you in advance for your attention to this unfortunate situation.
Sincerely,
Name
Address
Page 73

5. Negotiating a Settlement with Utility Companies
Date
Regional Utilities
Address
To whom it may concern:
Please be advised that this correspondence is an effort to once again satisfy

the obligation listed with your company as account number
_______________ and with (Credit Bureau Name)
as account number ___________ in the amount of $_____________.
You state, "In order for us to maintain the integrity of all the accounts that we
refer to Equifax, we will only cancel accounts if they have been referred due
to an error on our part."
I doubt that this is the first time a meter was not transferred from one owner
to another correctly.
My request does nothing to breach your integrity concerning other accounts

with (Credit Bureau Name).
It is the popularly held standard that the Fair Credit Reporting Act concludes
that paid collection accounts may be reported for seven years from the date
of last activity. Thus, if a consumer, such as myself, were to pay off a debt,
one would be burdened with the negative trade reference for an additional
seven years above and beyond that time which may have already passed.
It is my goal to be free from an additional seven years of negative credit data

pertaining to this account. In my last correspondence dated ____________, (
see enclosed copy), I requested your assistance in putting this error to rest
by making payment, even though I was not the recipient of the services being
billed for. I thought I had made it clear chat this proposal is being made only
for the purpose of compromise and is not in any way to be construed as an
admission of any liability, wrongful or negligent conduct or bad faith on the
part of either party.
Accordingly, I am again requesting your help in deletion of this account from

my credit reports when payment in full is received, as this is not accurately
portraying what happened. In this instant matter, your company will collect
the obligation in full and I will face no more of a credit-reporting burden than
that already sustained.
Sincerely,
Name
Address
Page 74

6. Negotiating a Settlement with Creditors
Date
Creditor
Address
RE: Account # __________________
Dear Creditor:
I am writing in an attempt to settle the account you are listing under my

name and social security number.
I agree ___________________ Company should have been paid for service

rendered but I do not agree with this being on my credit report as a bad debt.
I would like to put this account to rest as I hope you would. I did not use your
services but am negligent in not making certain the person buying the
residence had changed the billing from my name to his. I never received a
statement or overdue notice. I no longer was living in the home so I had no
reason to suspect a payment problem.
My concern is if I made payment to you in an attempt to stop negative

reporting to the credit bureau, the balance in my credit file would show Zero
PAID COLLECTION, and then those negative ratings would continue for
another seven years.
This would be wrong, as it is not a true indicator of my willingness or ability to

pay debts.
I believe I am caught in the computers and a credit reporting system that
does not tell what truly has happened.
I am requesting your help in deletion of this account from my credit reports

when payment in full is received, as this does not accurately portray what has
happened. I have been informed by reputable source that this can be done
and is within the purview of the law.
I look forward to your prompt attention to this matter and an expedient

favorable resolution.
Sincerely,
Name
Address
Page 75

7. After No Response from a Credit Bureau
Date
ATT: Consumer Assistance
Credit Bureau
Address
RE: __________________ Social Security Number
On March ___________ and April ___________, I sent you letters requesting

items be investigated on my credit report. (see enclosed copies).
As of yet I have not received a response from you. Under the Fair Credit
Reporting Act you are required to respond within a "reasonable period of
time."
I am sending this letter certified so I will know you did receive it. In this way I
will have no option but to pursue my legal rights if I do not receive a
response.
Sincerely,
Signature
Name
Address
Page 76

8. Disputing Specific Items and Inquiries
Date
Credit Bureau
Address
RE: Acct. #...
Going over my credit report I have found it has many errors. I request your
investigation of the following:
1. Sears I spoke with Sears again to verify my records. They confirmed this
as my account and that there were no late payments to this account. They
will draft a letter if needed to correct this error. Please contact this creditor
2. Foreclosure 5/92 I did not have a foreclosure in 1992 or since then. Please
remove this.
3. Collection Account _____________ I have tried to get to the bottom of this

with the information your company supplied. How are you able to confirm
when I cannot? (See enclosed copy). This is not mine. Please remove this.
The consumer has no protection against automobile salesman who are not
concerned about a persons credit report or what problems multiple inquiries
can cause. Your credit bureau has legal responsibility in this matter. There
should be more supervision on access to credit files by salesman with these
dealerships.
I did not authorize the following inquiries and demand they be remove from
my file:
1. GMAC There are 4 different days in November of 19**. Why would this be?
Please remove 3 of these entries. I only authorized one time.
2. Nissan Motor Acceptance Corp. I only authorized one.
Please remove the other 4 entries.
These listed accounts are not my debts or my authorized inquiries. Please

correct this by the removal of these items from my credit report. Please send
a copy of my corrected possible to my address listed below.
Sincerely,
Your Signature
Name
Address
Page 77

9. Request Reinvestigation of Items that are Still Showing on

report
Date
ATTN: CUSTOMER RELATIONS DEPARTMENT

Credit Bureau
Address
I have been around and around with your company regarding the errors
which I have.
And they continue to remain in my consumer credit report.
I am again noting that problems have been discovered and they continue to
remain unresolved.
I don't know how to better state my problem nor do I know how to correct
the errors.
The following accounts are not mine.
Account Name & Numbers

________________________
________________________
________________________
Since you have not given me names of persons with their business addresses
that you contacted for re-verification of the information, so that I could follow
up as I requested,
I assume that you have not been able to verify the information I have
disputed.
If this problem continues and I am forced to seek some form of professional

assistance, you have been forewarned of the harm that this problem is
causing me.
I shall assume that 30 days constitutes a "reasonable time" to complete these

actions unless you immediately notify me otherwise.
Send me an updated copy of my credit report with these items deleted.
Thanks,
Signature
Name
Address
Page 78

10. Answer Letter to Credit Bureau's Request for More Information
Date
ATTN.: CUSTOMER RELATIONS DEPARTMENT
Credit Bureau
Address
RE: Investigation of credit file.
On ____________ (date), I wrote to (Credit Bureau Name) at this address

and filed a dispute of information in my credit report. This dispute indicated
that the information was in dispute and identified the data from the language
used in the credit report.
I also gave my address and copy of my drivers’ license. And I’ve enclosed
those documents again now.
Please expedite my original request dated ____________. It has now been 14

days and I am still burdened with inaccurate credit reporting.
Sincerely,
Signature
Name
Address
Page 79

BONUS #2
How to speak with the Creditor’s Representatives
When you contact a person by phone always ask them what their name is and
write it down. This helps put you in control and keep accurate records.
"Hello, whom am I speaking with? My name is and I would like to speak to

someone about my account, please."
"My account number is _______________________

"My social security number is __________________
Be aware that your creditor is reviewing your credit report and knows you are
in trouble. During your conversation always maintain your composure and be
humble, (even if you want to yell).
Listen to what they have to say and don't offer any information.
You want to find out your balance, the interest owed, penalties and your past
due amount.
Key points to emphasize and go back to during conversation:
• "My intentions are to honor this debt"

• "My economic situation has changed since our agreement"
• "Please work with me so I can realistically make payments"
• "I would rather do it this way instead of going bankrupt"
• "This is an effort to pay my debt"
• "This is only a temporary situation"
Your goals are:
• To get the interest lowered or stopped.

• To stop penalties.
• To establish a payment plan you can realistically maintain.
Always use "please" and "thank you". Always keep you composure
If you get lost or feel you are loosing control, just excuse yourself by saying:
"Excuse me (persons name), may I have your phone number and extension. I
have a small emergency and will need to call you back. When would be a
good time?"
Page 80

BONUS #3
The Fair Credit Reporting Act
601. Short title.

602. Findings and purpose.
603. Definitions and rules of construction.
604. Permissible purpose of reports.
605. Obsolete information.
606. Disclosure of investigative consumer reports.
607. Compliance procedures.
608. Disclosures to governmental agencies.
609. Disclosures to consumers.
610. Conditions of disclosure to consumers.
611. Procedure in case of disputed accuracy.
612. Charges for certain disclosures.
613. Public record information for employment purposes.
614. Restrictions on investigative consumer reports.
615. Requirements on users of consumer reports.
616. Civil liability for willful noncompliance.
617. Civil liability for negligent noncompliance.
618. Jurisdiction of courts: limitation of Actions.
619. Obtaining information under false pretenses.
620. Unauthorized disclosures by officers or employees.
621. Administrative enforcement.
622. Relation to State laws.
SS 601. SHORT TITLE

This title may be cited as the Fair Credit Reporting Act.
SS 602. FINDINGS AND PURPOSE

(a) The Congress makes the following findings: (1) The banking system is
dependent upon fair and accurate credit reporting. Inaccurate credit reports
directly impair the efficiency of the banking system, and unfair credit
reporting methods undermine the public confidence which is essential to the
continued functioning of the banking system. (2) An elaborate mechanism has
been developed for investigating and evaluating the credit worthiness, credit
standing, credit capacity, character, and general reputation of consumers. (3)
Consumer reporting agencies have assumed a vital role in assembling and
evaluating consumer credit and other information on consumers. (4) There is
a need to insure that consumer reporting agencies exercise their grave
responsibilities with fairness, impartiality, and a respect for the consumer's
right to privacy. (b) It is the purpose of this title to require that consumer
reporting agencies adopt reasonable procedures for meeting the needs of
commerce for consumer credit personnel, insurance, and other information in
Page 81

a manner which is fair and equitable to the consumer, with regard to the
confidentiality, accuracy, relevancy, and proper utilization of such information
in accordance with the requirements of this title.
SS 603. DEFINITIONS AND RULES OF CONSTRUCTION

(a) Definitions and rules of construction set forth in this section are applicable
for the purposes of this title.(b) The term 'person' means any individual,
partnership, corporation, trust, estate, cooperative, association, government
or governmental subdivision or agency, or other entity. (c) The term
'consumer' means an individual. (d) The term 'consumer report' means any
written, oral, or other communication of any information by a consumer
reporting agency bearing on a consumer's credit worthiness, credit standing,
credit capacity, character, general reputation, personal characteristics, or
mode of living which is used or expected to be used or collected in whole or in
part for the purpose of serving as a factor in establishing the consumer's
eligibility for (l) credit or insurance to be used primarily for personal, family,
or household purposes, or (2) employment purposes, or (3) other purposes
authorized under section 604. The term does not include (A) any report
containing information solely as to transactions or experiences between the
consumer and the person making the report; (B) any authorization or
approval of a specific extension of credit directly or indirectly by the issuer of
credit card or similar device; or (C) any report in which a person who has
been requested by a third party to make a specific extension of credit directly
or indirectly to a consumer conveys his decision with respect to such request,
if the third party advises the consumer of the name and address of the person
to whom the request was made and such person makes the disclosures to the
consumer required under section 615. (e) The term 'investigative consumer
report means a consumer report or portion thereof in which information on a
consumer's character, general reputation, personal characteristics, or mode of
living is obtained through personal interviews with neighbors, friends, or
associates of the consumer reported on or with others with whom he is
acquainted or who may have knowledge concerning any such items of
information. However, such information shall not include specific factual
information on a consumer's credit record obtained directly from a creditor of
the consumer or from a consumer reporting agency when such information
was obtained directly from a creditor of the consumer or from the consumer.
(f) The term 'consumer reporting agency' means any person which, for
monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in
whole or in part in the practice of assembling or evaluating consumer credit
information or other information on consumers for the purpose of furnishing
consumer reports to third parties, and which uses any means or facility of
interstate commerce for the purpose of preparing or furnishing consumer
reports. (g) The term 'file', when used in connection with information on any
consumer, means all of the information on that consumer recorded and
retained by a consumer reporting agency regardless of how the information is
stored. (h) The term 'employment purposes' when used in connection with a
consumer report means a report used for the purpose of evaluating a
consumer for employment, promotion, reassignment or retention as an
employee. (g) The term 'medical information' means information or records
obtained, with the consent of the individual to whom it relates, from licensed
physicians or medical practitioners, hospitals, clinics, or other medical or
medically related facilities.
Page 82

SS 604. PERMISSIBLE PURPOSES OF REPORTS

A consumer reporting agency may furnish a consumer report under the
following circumstances and no other: (1) In response to the order of a court
having jurisdiction to issue such an order. (2) In accordance with the written
instructions of the consumer to whom it relates. (3) To person which it has
reason to believe (A) intends to use the information in connection with a
credit transaction involving the consumer on whom the information is to be
furnished and involving the extension of credit to, or review or collection of an
account of, the consumer; or (B) intends to use the information for
employment purposes; or (C) intends to use the information in connection
with the underwriting of insurance involving the consumer; or (D) intends to
use the information in connection with a determination of the consumer's
eligibility for a license or other benefit granted by a governmental
instrumentality required by law to consider an applicant's financial
responsibility or status; or (E) otherwise has a legitimate business need for
the information in connection with a business transaction involving the
consumer.
SS 605. OBSOLETE INFORMATION

(a) Except as authorized under subsection (b), no consumer reporting agency
may make any consumer report containing any of the following items of
information: (1) Cases under title 11 of the United States Code or under the
Bankruptcy Act that, from the date of entry of order for relief or the date of
adjudication, as the cause may be, antedate the report by more than 10
years. (2) Suits and judgments which, from date of entry, antedate the report
by more than seven years or until the governing statute of limitations has
expired, whichever is the longer period. (3) Paid tax liens which, from date of
payment, antedate the report by more than seven years. (4) Accounts placed
for collection or charged to profit and loss which antedate the report by more
than seven years. (5) Records of arrest, indictment, or conviction of crime
which, from date of disposition, release, or parole, antedate the report by
more than seven years. (6) Any other adverse item of information which
antedated the report by more than seven years. (b) The provisions of
subsection (a) are not applicable in the case of any consumer credit report to
be used in connection with (1) a credit transaction involving, or which may
reasonably be expected to involve, a principal amount of $50,000 or more;
(2) the underwriting of life insurance involving, or which may reasonably be
expected to involve, a face amount of $50,000 or more; or( 3) the
employment of any individual at an annual salary which equals, or which may
reasonably be expected to equal $20,000, or more.
SS 606. DISCLOSURE OF INVESTIGATIVE CONSUMER REPORTS

(a) A person may not procure or cause to be prepared an investigative
consumer report on any consumer unless (l) it is clearly and accurately
disclosed to the consumer that an investigative consumer report including
information as to his character, general reputation, personal characteristics,
and made of living, whichever are applicable, may be made, and such
disclosure (A) is made in a writing mailed, or otherwise delivered, to the
consumer, not later than three days after the date on which the report was
first requested, and (B) includes a statement informing the consumer of his
right to request the additional disclosures provided for under subsection (b) of
Page 83

this section; or (2) the report is to be used for employment purposes for
which the consumer has not specifically applied. (b) Any person who procures
or causes to be prepared an investigative consumer report on any consumer
shall, upon written request made by the consumer within a reasonable period
of time after the receipt by him of the disclosure required by subsection (a)
(1), shall make a complete and accurate disclosure of the nature and scope of
the investigation requested. This disclosure shall be made in a writing,
mailed, or otherwise delivered, to the consumer not later than five days after
the date on which the request for such disclosure was received from the
consumer or such report was first requested, whichever is the later. (c) No
person may be held liable for any violation of subsection (a) or (b) of this
section if he shows by a preponderance of the evidence that at the time of the
violation he maintained reasonable procedures to assure compliance with
subsection (a) or (b).
SS 607. COMPLIANCE PROCEDURES

(a) Every consumer reporting agency shall maintain reasonable procedures
designed to avoid violations of section 605 and to limit the furnishing of
consumer reports to the purposes listed under section 604. These procedures
shall require that prospective users of the information identify themselves,
certify the purposes for which the information is sought, and certify that the
information will be used for no other purpose. Every consumer reporting
agency shall make a reasonable effort to verify the identity of a new
prospective user and the uses certified by such prospective user prior to
furnishing such user a consumer report. No consumer reporting agency may
furnish a consumer report to any person if it has reasonable grounds for
believing that the consumer report will not be used for a purpose listed in
section (b) Whenever a consumer reporting agency prepares a consumer
report it shall follow reasonable procedures to assure maximum possible
accuracy of the information concerning the individual about whom the report
relates.
SS 608. DISCLOSURES TO GOVERNMENTAL AGENCIES

Not withstanding the provisions of section 604, a consumer reporting agency
may furnish identifying information respecting any consumer, limited to his
name, address, former addresses, places of employment, or former places of
employment, to a governmental agency.
SS 609. DISCLOSURES TO CONSUMERS

(a) Every consumer reporting agency shall, upon request and proper
identification of any consumer, clearly and accurately disclose to the
consumer: (1) The nature and substance of all information (except medical
information) in its files on the consumer at the time of the request. (2) The
sources of the information; except that the sources of information acquired
solely for use in preparing an investigative consumer report and actually used
for no other purpose need not be disclosed: Provided, That in the event an
action is brought under this title, such sources shall be available to the
plaintiff under appropriate discovery procedures in the court in which the
action is brought. (3) The recipients of any consumer report on the consumer
which it has furnished (A) for employment purposes within the two year
period preceding the request and (B) for any other purpose within the six
month period preceding the request. (b) The requirements of subsection (a)
Page 84

respecting the disclosure of sources of information and the recipients of

consumer reports do not apply to information received or consumer reports
furnished prior to the effective date of this title except to the extent that the
matter involved is contained in the files of the consumer reporting agency on
that date.
SS 610. CONDITIONS OF DISCLOSURE TO CONSUMERS

(a) A consumer reporting agency shall make the disclosures required under
section 609 during normal business hours and on reasonable notice. (b) The
disclosures required under section 609 shall be made to the consumer. (1) in
person if he appears in person and furnishes proper indemnification; or (2) by
telephone if he has made a written request, with proper identification, for
telephone disclosure and the toll charge, if any, for the telephone call is
prepaid by or charged directly to the consumer. (c) Any consumer reporting
agency shall provide trained personnel to explain to the consumer any
information furnished to him pursuant to section 609. (d) The consumer shall
be permitted to be accompanied by one other person of his choosing, who
shall furnish reasonable identification. A consumer reporting agency may
require the consumer to furnish a written statement granting permission to
the consumer reporting agency to discuss the consumer's file in such person's
presence. (e) Except as provided in sections 616 and 617, no consumer may
bring any action or proceeding in the nature of defamation, invasion of
privacy, or negligence with respect to the reporting of information against and
consumer reporting agency, any user of information, or any person who
furnishes information to a consumer reporting agency, based on information
disclosed pursuant to section 609, 610, or to false information furnished with
malice or to injure such consumer.
SS 611. PROCEDURE IN CASE OF DISPUTED ACCURACY

(a) If the completeness of accuracy of any item of information contained in
his file is disputed by a consumer, and such dispute is directly conveyed to
the consumer reporting agency by the consumer, the consumer reporting
agency shall within a reasonable period of time reinvestigate and record the
current status of that information unless it has reasonable grounds to believe
that the dispute by the consumer if frivolous or irrelevant. If after such
reinvestigation such information is found to be inaccurate or can no longer be
verified, the consumer reporting agency shall promptly delete such
information. The presence of contradictory information in the consumer's file
does not in and of itself constitute reasonable grounds for believing the
dispute is frivolous or irrelevant. (b) If the reinvestigation does not resolve
the dispute, the consumer may file a brief statement setting forth the nature
of the dispute. The consumer reporting agency may limit such statements to
not more than one hundred words if it provides the consumer with assistance
in writing a clear summary of the dispute. (c) Whenever a statement of a
dispute is filed, unless there is reasonable grounds to believe that it is
frivolous or irrelevant, the consumer reporting agency shall, in any
subsequent consumer report containing the information in question, clearly
note that it is disputed by the consumer and provide either the consumer's
statement or a clear and accurate codification or summary thereof. (d)
Following any deletion of information which is found to be inaccurate or
whose accuracy can no longer be verified or any notation as to disputed
information, the consumer reporting agency shall, at the request of the
Page 85

consumer, furnish notification that the item has been deleted or the
statement, codification or summary pursuant to subsection (b) or (c) to any
person specifically designated by the consumer who has within two years
prior thereto received a consumer report for employment purposes, or within
six months prior thereto received a consumer report for any other purpose,
which contained the deleted or disputed information. The consumer reporting
agency shall clearly and conspicuously disclose to the consumer his rights to
make such a request. Such disclosure shall be made at or prior to the time
the information is deleted or the consumer's statement regarding the
disputed information is received.
SS 612. CHARGES FOR CERTAIN DISCLOSURES

A consumer reporting agency shall make all disclosures pursuant to section
609 and furnish all consumer reports pursuant to section 611 (d) without
charge to the consumer if, within thirty days after receipt by such consumer
of a notification pursuant to section 615 or notification from a debt collection
agency affiliated with such consumer reporting agency stating that the
consumer's credit rating may be or has been adversely affected, the
consumer makes a request under section 609 or 611(d). Otherwise, the
consumer reporting agency may impose a reasonable charge on the
consumer for making disclosure to such consumer pursuant to section 609,
the charge for which shall be indicated to the consumer prior to making
disclosure; and for furnishing notifications, statements, summaries, or
notifications to person designated by the consumer pursuant to section 611
(d), the charge for which shall be indicated to the consumer prior to
furnishing such information and shall not exceed the charge that the
consumer reporting agency would impose on each designated recipient for a
consumer report except that no charge may be made for notifying such
persons of the deletion of information which is found to be inaccurate or
which can no longer be verified.
SS 613. PUBLIC RECORD INFORMATION FOR EMPLOYMENT PURPOSES:

A consumer reporting agency which furnishes a consumer report for
employment purposes and which for that purpose compiles and reports items
of information on consumers which are matters of public record and are likely
to have an adverse effect upon a consumer's ability to obtain employment
shall: (1) at the time such public record information is reported to the user of
such consumer report, notify the consumer of the fact that public record
information is being reported by the consumer reporting agency, together
with the name and address of the person to whom such information is being
reported; or (2) maintain strict procedures designed to insure that whenever
public record information is likely to have an adverse effect on a consumer's
ability to obtain employment is reported it is complete and up to date. For
purposes of this paragraph, items of public record relating to arrests,
indictments, conviction, suits, tax liens, and outstanding judgments shall be
considered up to date if the current public record status of the item at the
time of the report is reported.
SS 614. RESTRICTIONS ON INVESTIGATIVE CONSUMER REPORTS

Whenever a consumer reporting agency prepares an investigative consumer
report, no adverse information in the consumer report (other than information
which is a matter of public record) may be included in a subsequent consumer
Page 86

report unless such adverse information has been verified in the process of
making such subsequent consumer report, or the adverse information was
received within the three month period preceding the date the subsequent
report is furnished.
SS 615. REQUIREMENTS ON USERS OF CONSUMER REPORTS

(a) Whenever credit or insurance for personal, family, or household purposes,
or employment involving a consumer is denied or the charge for such credit
or insurance is increased either wholly or partly because of information
contained in a consumer report from a consumer reporting agency, the user
of the consumer report shall so advise the consumer against whom such
adverse action has been taken and supply the name and address of the
consumer reporting agency making the report. (b) Whenever credit for
personal, family, or household purposes involving a consumer is denied or the
charge for such credit is increased either wholly or partly because of
information obtained from a person other than a consumer reporting agency
bearing upon the consumer's credit worthiness, credit standing, credit
capacity, character, general reputation, personal characteristics, or mode of
living, the user ' of such information shall, within a reasonable period of time,
upon the consumer's written request for the reasons for such adverse action
received within sixty days after learning of such adverse action, disclose the
nature of information to the consumer. The user of such information shall
clearly and accurately disclose to the consumer his right to make such written
request at the time such adverse action is communicated to the consumer.
(c) No person shall be held liable for any violation of this section if he shows
by a preponderance of the evidence that at the time of the alleged violation
he maintained reasonable procedures to assure compliance with the
provisions of subsections (a) & (b).
SS 616. CIVIL LIABILITY FOR WILLFUL NONCOMPLIANCE

Any consumer reporting agency or user of information which willfully fails to
comply with any requirement imposed under this title with respect to any
consumer is liable to that consumer in an amount equal to the sum of (1) any
actual damages sustained by the consumer as a result of the failure; (2) such
amount of punitive damages as the court may allow; and (3) in the case of
any successful action to enforce any liability under this section the costs of
the action together with reasonable attorney's fees as determined by the
court.
SS 617. CIVIL LIABILITY FOR NEGLIGENT NONCOMPLIANCE

Any consumer reporting agency or user of information which is negligent in
failing to comply with any requirement imposed under this title with respect
to any consumer is liable to that consumer in an amount equal to the sum of
(1) any actual damages sustained by the consumer as a result of the failure;
(2) in the case of any successful action to enforce any liability under this
section, the costs of the action together with reasonable attorney's fees as
determined by the court.
SS 618. JURISDICTION OF COURTS; LIMITATION OF ACTIONS

An action to enforce any liability created under this title may be brought in
any appropriate United States district court without regard to the amount in
controversy, or in any other court of competent jurisdiction, within two years
Page 87

from the date on which the liability arises, except that where a defendant has
materially and willfully misrepresented any information required under this
title to be disclosed to an individual and the information so misrepresented is
material to the establishment of the defendant's liability to that individual
under this title, the action may be brought at any time within two years after
discovery by the individual of the misrepresentation.
SS 619. OBTAINING INFORMATION UNDER FALSE PRETENSES

Any person who knowingly and willfully obtains information on a consumer
from a consumer reporting agency, under false pretenses shall be fined not
more than $5,000 imprisoned not more than one year, or both.
SS 620. UNAUTHORIZED DISCLOSURE BY OFFICERS OR EMPLOYEES

Any officer or employee of a consumer reporting agency who knowingly and
willfully provides information concerning an individual from the agency's files
to a person not authorized to receive that information shall be fined not more
than $5,000 or imprisoned not more than one year, or both.
SS 621. ADMINISTRATIVE ENFORCEMENT

(a) Compliance with the requirements imposed under this title shall be
enforced under the Federal Trade Commission Act by the Federal Trade
Commission with respect to consumer reporting agencies and all other
persons subject thereto, except to the extent that enforcement of the
requirements imposed under this title is specifically committed to some other
government agency under subsection (b) hereof. For the purpose of the
exercise by the Federal Trade Commission of its functions and powers under
the Federal Trade Commission Act, a violation of any requirement or
prohibition imposed under this title shall constitute an unfair or deceptive act
or practice in commerce in violation of section 5 (a) of the Federal Trade
Commission Act and shall be subject to enforcement by the Federal Trade
Commission under section 5 (b) thereof with respect to any consumer
reporting agency or person subject to enforcement by the Federal Trade
Commission pursuant to this subsection, irrespective of whether that person
if; engaged in commerce or meets any other jurisdictional tests in the Federal
Trade Commission Act. The Federal Trade Commission shall have such
procedural, investigative, and enforcement power, including the power to
issue procedural rules in enforcing compliance with the requirements imposed
under this title and to require the filing of reports, the production of
documents', and the appearance of witnesses as though the applicable terms
and conditions of the Federal Trade Commission Act were part of this title.
Any person violating any of the provisions of this title shall be subject to the
penalties and entitled to the privileges and immunities provided in the Federal
Trade Commission Act though the applicable terms and provisions thereof
were part of this title. (b) Compliance with the requirements imposed under
this title with respect to consumer reporting agencies and persons who use
consumer reports from such agencies shall be enforced under (1) section 8 of
the Federal Deposit Insurance Act in the case of: (A) national banks, by the
comptroller of the Currency; (B) member banks of the Federal Reserve
System (other than national banks). by the Federal Reserve Board; and (C)
banks insured by the Federal Deposit Insurance Corporation (other than
members of the Federal Deposit Insurance Corporation. (2) section 5 (d) of
the Home Owners Loan Act of 1933, section 407 of the National [lousing Act,
Page 88

and sections 6 (i) and 17 of the Federal Home Loan Bank Act, by the Federal
Home Loan Hank Board (acting directly or through the Federal Savings and
Loan Insurance Corporation), in the case of any institution subject to any of
those provisions; (3) the Federal Credit Union Act, by the Administrator of the
National Credit Union Administration with respect to any Federal Credit union;
(4) the Acts to regulate commerce, by the Interstate Commerce Commission
with respect to any common carrier subject to those Acts: (5) the Federal
Aviation Act of 1958, by the Civil Aeronautics Board with respect to any air
carrier or foreign air carrier subject to that act; and (6) the Packers and
Stockyards Act, 1921 (except as provided in section 406 of that Act), by the
Secretary of Agriculture with respect to any activities subject to that Act. (c)
For the purpose of the exercise by any agency referred to in subsection (b) of
its powers under any Act referred to in that subsection, a violation of any
requirement imposed under this title shall be deemed to be a violation of a
requirement imposed under the Act. In addition to its powers under any
provision of law specifically referred to in subsection (b), each of the agencies
referred to in that subsection may exercise, for the purpose of enforcing
compliance with any requirement imposed under this title any other authority
conferred on it by law.
SS 622. RELATION TO STATE LAWS

This title does not annul, alter, affect, or exempt any person subject to the
provisions of this title from complying with the laws of any State with respect
to the collection, distribution, or use of any information on consumers, except
to the extent that laws are inconsistent with any provision of this title, and
then only to the extent of the inconsistency.
EFFECTIVE DATE
Sec. 602. Section 504 of the Consumer Credit Protection Act amended by
adding at the end thereof the following new subsection: (d) Title VI takes
effect upon the expiration of one hundred and eighty days following the date
of its enactment." And the Senate agree to the same.
Page 89

BONUS #4
Your Credit Score - FREE
Checking your credit score is an easy way to find out how lenders view
your credit worthiness and can alert you if you need to manage your credit
more carefully. In the past, credit bureaus and other companies wouldn't
share this information with consumers, but E-LOAN now lets you view
your credit score for free.
You can get your credit score absolutely free at:
https://www.eloan.com/myeloan/viewscore?linksrc=score&sid=7won
Vdq3Xj26SqwyWWgoB7oOXvg
If the above link does not work, go to:

www.eloan.com and locate the little Icon at the bottom right of the
page that says: “Free credit scores – Now available”
You will need to set up an account – It’s FREE
I recommend you get either a tri-merge credit report or all three before you
embark on the credit restoration process.
Page 90

Financial Links to assist you with your pursuit of

DYNAMITE Credit:
http://www.erasingbadcredit.com/creditlinks.html
www.ErasingBadCredit.com
Page 91

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eBusinesspower 2000,2001 www.ErasingBadCredit.com

WHAT IS A CREDIT BUREAU? ........................................................................................7

HOW DO THE CREDIT BUREAUS OBTAIN INFORMATION? .................................9

HOW LONG DO THE CREDIT BUREAUS KEEP MY CREDIT INFORMATION?.9

WHY SHOULD I CHECK MY CREDIT REPORT?........................................................9

HOW DOES THE CREDIT REPORTING SYSTEM WORK?.....................................10

HOW HAS THE COMPUTER AGE AFFECTED THE CREDIT REPORTING

WHAT ARE THE LAWS GOVERNING CREDIT BUREAUS?...................................11

HOW DOES INFORMATION GET INTO A CREDIT REPORT? ..............................12

DO I HAVE THE RIGHT TO KNOW WHAT IS IN MY CREDIT FILE?..................13

HOW CAN I FIND OUT WHAT INFORMATION IS IN MY CREDIT FILE?..........15

WHO MAY OBTAIN A COPY OF MY CREDIT FILE? ...............................................17

HOW DO ERRORS OCCUR AND HOW FREQUENTLY?..........................................18

CAN I REMOVE ACCURATE CREDIT INFORMATION FROM MY CREDIT

HOW CAN I ADD POSITIVE DATA TO MY CREDIT REPORT?.............................19

WHAT SHOULD MY GOALS BE IN CREDIT RESTORATION?..............................20

SHOULD I APPLY FOR CREDIT WHILE IN THE RESTORATION PROCESS? ..20

HOW LONG SHOULD THE CREDIT RESTORATION PROCESS TAKE?.............21

WHY DOES THE CREDIT RESTORATION PROCESS TAKE SO LONG? ............21

HOW MANY ROUNDS OF DISPUTES SHOULD I EXPECT TO UNDERTAKE? ..22

eBusinesspower 2000,2001 www.ErasingBadCredit.com

WHAT CAN I EXPECT FROM THE BUREAUS AS I WORK THROUGH THE

ARE THE CREDIT REPORTS ALL THE SAME? ........................................................23

WHAT'S THE WORST THING THAT CAN APPEAR ON MY CREDIT REPORT?

HOW TO READ AND INTERPRET YOUR CREDIT REPORT .................................24

WHAT IF THE CREDIT REPORT IS NOT TRW, TRANS UNION OR EQUIFAX?

STRATEGIES YOU MUST KNOW BEFORE YOU EMBARK… ...............................45

SIMPLE STEP BY STEP INSTRUCTIONS TO REPAIR YOUR CREDIT ................46

FEDERAL LAWS ARE IN YOUR FAVOR!....................................................................48

THE EASY ITEMS TO REMOVE ....................................................................................50

AND THE HARD ONES ARE: ..........................................................................................51

DETAILED STEP-BY-STEP ACTIONS: .........................................................................51

eBusinesspower 2000,2001 www.ErasingBadCredit.com

Q. WHAT IS SECURED DEBT? .......................................................................................59

Q. WHAT IS AN UNSECURED DEBT?...........................................................................59

Q. WHEN DOES A SECURED DEBT BECOME AN UNSECURED DEBT?.............59

HOW DO I BUILD CREDIT?............................................................................................65

WHAT IF THE CREDIT BUREAU REFUSES TO ACCEPT MY DISPUTE SAYING

WHAT IF YOU DON'T GET ANY RESULTS? ..............................................................67

THE FAIR CREDIT REPORTING ACT .........................................................................81

eBusinesspower 2000,2001 www.ErasingBadCredit.com

These methods are sometimes referred to as "Credit Repair". These

Some credit blemishes will be easier to remove than others. The

eBusinesspower 2000,2001 www.ErasingBadCredit.com

eBusinesspower 2000,2001 www.ErasingBadCredit.com

A credit bureau, or credit repository, is an entity that gathers information

• Identity information such as your name, address, social security

There are three major credit bureaus in the United States:

eBusinesspower 2000,2001 www.ErasingBadCredit.com

These three bureaus provide nationwide coverage of consumer credit

The credit bureaus are a for-profit system that generates billions of

It is essential to understand that Credit Bureaus are

Credit Bureaus are paid by the people who request your

However, because of the tremendous amounts of information on their

eBusinesspower 2000,2001 www.ErasingBadCredit.com

How do the credit bureaus obtain information?

Credit bureaus obtain identification and credit information from credit

Bureaus obtain monetary-related public record information directly from

How long do the credit bureaus keep my credit

• Closed or Inactive Accounts - 10 years from the date of last activity.

• Derogatory Accounts - 7 years from the date of original

• Public Records - 7 years from the date of payment or indefinitely if

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