Disputing errors and dealing with collections

The 3 levers under the Fair Credit Reporting Act (FCRA)

1. Dispute online or by mail through each bureau (Equifax, Experian, TransUnion). They have 30 days to investigate. If they can't verify, they must remove it.
2. Direct dispute with the furnisher — the company that reported the item.
3. Demand validation from a collections agency within 30 days of first contact. They must prove they own the debt. Many cannot.

Free template letters

The CFPB publishes sample letters at consumerfinance.gov/ask-cfpb. Use these instead of paying anyone.

The 'pay for delete' negotiation

With collections accounts, you can sometimes negotiate: 'I will pay $X to settle this account if you remove it from my credit report.' Get it in writing before paying. Not legally guaranteed but common.

Statute of limitations

Debts have a state-specific statute of limitations (typically 3-6 years) after which they're legally uncollectable. Be careful — making a payment can restart the clock. Look up your state before paying any old collection.