Sample credit repair letter to remove a charge-off from your credit report

Below you'll find a sample credit repair letter to remove a charge off.

Two, in fact. The first includes a variety of phrases to dispute erroneous credit report entries that may or may not apply in your case; use the ones that work, delete the ones that don't. The second letter is a sample dispute letter noting errors found in the report.

Use any of the following sample responses that apply to your circumstances in your dispute letters to prove your point. Many experts claim that when you inject your personality into your letters, you will achieve better results getting chargeoffs and write-offs removed.

It has been advised to hand-write your letters, then burn a photocopy for your records. I've had good success typing them on my computer and printing a laser copy. That allows me to organize the files on my desktop, and not have to keep up with the second copy.

In either case, these are tools to clean up your credit yourself for free.

Sample Dispute Phrases To Use In Your Letters:

1. I do not recall opening this account with _______________. This account is not mine.

2. I was not 30/60/90 days late making a payment on this account.

3. I believe I paid this account with _______ in full as originally agreed. This account was not a charge-off as indicated on my credit report.

4. I do not owe a judgment for $_______ as indicated on my credit report.

5. I did not declare bankruptcy on ________ as indicated on my credit report. I have never declared bankruptcy.

6. I do not owe a tax lien for $ ___________ as indicated on my credit report.

7. This account was the responsibility of ____________________, whom I was separated/divorced from on _________________. I am not liable for this debt.

8. I do not have a VISA/MasterCard/Discover Card/etc. as indicated on my credit report.

Sample Dispute Letter

January 1, 2008

Dear Credit Bureau,

I have checked my credit report and have found a multitude of errors. I wish to dispute the following errors and have them removed promptly:

My account at the Big Hometown Store, account #123456-789, was paid in full according to the terms of my original terms with this store. It was not a charge-off. Please remove this incorrect charge off.

I was never 90 days late paying XYZ Credit Company, account #987-654321. Please correct this erroneous entry.

The entry stating I declared Chapter 7 Bankruptcy on March 8, 2003 is false. I have never declared any form of bankruptcy. This is not mine. This entry should be deleted from my credit report immediately.

My name is Johnny Jones. My mailing address is 1234 So. Main Street, Anytown, NY 20202. My Social Security Number is 555-11-9999. My previous address was 4321 No. Main Street, Anytown, NY 20202. My birthdate is January 1, 1950.

Sincerely Yours,

Johnny Jones

As stated previously, tailor the above format to suit your own particular circumstances. Use it as a format, customize the wording to fit your own credit situation, and retype the letters neatly for best results.

Keep copies of all letters you send and receive. Include all relevant items which you believe should be deleted from your credit report. These copies will not only help keep your credit repair process organized and on-track to fix your credit rating, but you will also be gathering evidence in the event your credit rights have been violated and you find the need to pursue legal action. If the credit reporting bureau does not remove certain items, repeat the process 120 days after you receive your updated credit report.

Perhaps you will need to provide more exact information to substantiate your claim that an item is incorrect. At this point, you may also need to call one of the many credit counseling bureaus located throughout the country. Check in your local telephone Yellow Pages under "Credit Reporting Agencies" for the local telephone number.

"What Is A Charge Off, And Why Should I Avoid One?"

Ben Moskel

If you consider yourself as someone with bad credit, chances are that you have at least one or more “charge offs” on your credit reports. A “charge off” is a fairly generic term used in the debt and credit industry. A charge off is a term that simply means that the original creditor has given up collecting a delinquent debt. Once the creditor exhausts all collection efforts, it will typically charge the debt off and sell the debt to a third party.

For example, in the case of a delinquent credit card bill, the creditor usually attempts to collect the debt for approximately six months before determining that the debt should be written off or charged off. The creditor suffers because it has lost money on the loan, but experiences a tax benefit by writing the debt off. The creditor is allowed to deduct any charged off debts from its profits which mean it pays less income tax because of the lost profit directly related to those debts.

For consumers, a charge off can be devastating from a credit history perspective.

Next to repossession or foreclosure, a charge off is about the worst mark a person can have on his credit. It can prevent you from getting approved for a mortgage, car loan, credit card, or nearly any other type of new credit. Further, a single charged off debt could create multiple separate negative marks on a person’s credit history. This is due to the fact that a debt could be bought and sold multiple times as each party tries to recover lost profits.

Using the credit card example above, let’s assume that a credit card account is charged off. It may be sold to the highest bidding collection agency for thirty cents on the dollar. If that collection agency is unsuccessful in collecting the debt, they will likely cut their losses and try to sell that same debt to another agency for ten cents on the dollar.

As debts become older they are typically more difficult to collect. Debtors are less likely to pay old debts. Plus, the debt gets closer to the statute of limitations which is a point when reached, gives the debtor a “get out of jail free card.” A debtor has no legal obligation to pay once the statute of limitations runs on a debt.

In any event, as the debt is bought and sold over and over again, it is likely that each collection agency will place a negative mark on the person’s credit report. Some consumers report a long trail of charge offs on their credit report for a single debt!

This may sound egregious to some people. The Fair Debt Collection Practices Act and the Fair Credit Reporting Act police credit bureaus and collection agencies and prohibit them from providing misleading, inaccurate, or unverifiable information. It does not specifically prohibit a string of collection agencies from this practice. Although it is implicit that a collection agency should remove a credit report charge off mark once they sell a debt, it does not mean it is always diligent in doing so.

Therefore, the burden often falls upon the individual consumer to remove the inaccurate items by way of dispute letters, investigation requests, etc. Thus, a person dealing with even a single charged off debt may have a lot of work to do if they want to clear their credit history of charge offs.

In sum, a charge off is something that consumers should try to avoid if possible. If you are delinquent on an account, try negotiating directly with the creditor. It is both in the best interest of both parties to avoid a charged off debt.

Ben Moskel is an attorney who practices in the Western New York area. He handles matters surrounding credit repair, charge offs, and other credit matters.

Article Source: Ben Moskel