Free Letter Challenging a Credit Denial

The first step in obtaining your credit report is to check the telephone directory in your area for the name and address of the local credit bureaus. You may find them listed in the telephone Yellow Pages under "Credit Bureaus" or "Credit Reports." Your local bank or retailer may also be able to identify them. Credit bureaus must share with you any information they have on file about you. Contact the Credit Bureau to determine the fee involved in obtaining a copy of your credit report. If you have been denied credit, employment or insurance in the last 60 days, there should be no charge. Most credit bureaus will mail you a copy of your report, but you may wish to visit their offices to review your credit report.

There are three primary Credit Bureau agencies in the United States that have credit information:

Equifax

P.O. Box 105873

Atlanta, GA 30348

(800) 685-1111

Experian (Formerly TRW)

P.O. Box 2104

Allen, TX 75013-2104

(888) 397-3742

Trans Union Corporation

P.O. Box 390

Springfield, PA 19064-0390

(800) 888-4213

1. The geographic location in which the company is the strongest;
2. How quickly they can obtain the information;
3. Their general access to the information; and
4. The number of times you have moved or changed addresses.

The fee for obtaining a credit report depends on the Credit Bureau and the state you live in. Contact the Credit Bureau to find out the cost of obtaining a report.

If you have been denied credit, employment or insurance within the last 60 days, your credit report should be provided free of charge. However, you must provide a copy of the letter from the company, agency, or organization which denied you credit within the last 60 days.

The Fair Credit Reporting Act covers all reporting on individuals as consumers when you apply for and obtain credit, employment, and insurance. The Act creates several consumer rights, including:

1. When a credit report is a factor in turning down an application, the reasons and the name and address of the credit reporting agency must be given.

2. Upon request, the credit reporting agency must inform you about the nature and substance of the information in your credit file.

3. Upon request, the credit reporting agency must tell you who has received a report of your credit report file. This extends to the past six months for credit and insurance purposes, and to the past two years for employment purposes.

4. If you find inaccurate and unverifiable information, it must be deleted from your credit file.

5. When you find inaccurate information, the credit reporting agency must investigate it.

6. If, after investigating, the credit reporting agency determines that the information is accurate, you have a right to dispute the item. A brief explanation can be filed and made part of all future credit reports.

7. Your credit file must be kept confidential and used only for legitimate business purposes.

8. Personal information in your credit file must not be provided to government agencies unless a court order is obtained.

9. If adverse personal information is in public records, you must be informed when it is reported for employment purposes. You also have the right to have this information kept current.

10. Adverse information must be deleted after seven years (after ten years in bankruptcy cases).

11. If an investigative report is made on your personal life, you have the right to be informed, upon request, of the scope and nature of the report.

12. If you find that an investigative report contains adverse information, you have the right to have that item reinvestigated before the report can be reused.

13. If a credit reporting agency is negligent, you can collect actual damages. If the negligence was willful, it may be possible to collect punitive damages plus attorney fees and court costs.

To request a credit report, information including full name, date of birth, current and previous addresses within the past two years, social security number, current employer, spouse and phone number may be required. Some credit bureaus require that you provide proof of identity such as a copy of your driver's license, current utility bill, or bank statement.

If your name includes Jr., Sr., III, or a similar appendage, be sure to include this with your name.

An investigative consumer report is a special credit report with more detail than a routine report. It includes information about your character, general reputation, personal characteristics, or mode of living. The information is based on personal interviews with neighbors, friends, or associates. The report could also contain information concerning your credit standing, driving habits, and driving record.

Requesting a Copy of an Investigative Report
If the information you receive from the lending institution indicates that an investigative report is being undertaken, you have the right (within a reasonable period of time) to request, in writing, a complete and accurate description of the report's nature and scope.

The lending institution must provide this information within five days after receiving your request. It is not required to respond unless an investigation actually is performed, nor is it required to provide you with information sources or a copy of the completed report.

Financial institution regulators recommend that institutions provide a complete and accurate description of the types of questions to be asked and the number and types of persons to be interviewed, along with the name and address of the investigating agency.

If your application for a loan or purchase of item(s) on credit has been denied, you can request the reason(s) for the denial. Further, if unfavorable action is taken regarding an existing account, you can request the reason(s) related to such action. You must make this request within 60 days of receiving a denial of credit or notice of other adverse action.

The lending institution or entity extending credit must disclose the nature of the adverse information. The lending institution is generally required to respond to your request within 30 days of receiving it. The lending institution should give you sufficient information to allow you to verify the accuracy of the adverse information. If the information is incorrect, you may use this letter to advise the lending institution of the correct information.

1. Sign the letter.

2. Retain a copy of the letter for your own records.

3. If the challenge relates to a joint application for credit, both Applicants should sign the letter.

4. A request for additional information and/or for the reason(s) for the denial of credit must be made within 60 days following your receipt of the credit denial. The lending institution generally must respond to your request within 30 days.