TLDR;
This video explains how to effectively dispute late payments on your credit report by understanding the different procedures each credit bureau—Experian, Equifax, and TransUnion—follows. It highlights common mistakes in the dispute process and provides specific strategies for each bureau to increase the likelihood of successful removal of late payments. The video emphasizes the importance of knowing your rights and following up on disputes to ensure timely responses and potential escalation through complaints.
- Each credit bureau (Experian, Equifax, and TransUnion) has its own rules for processing disputes.
- A single late payment can significantly lower your credit score and remain on your report for up to seven years.
- Knowing how to dispute late payments correctly is essential for correcting inaccuracies and improving your credit score.
Introduction: Why Your Dispute Letters Aren't Working [0:00]
The video introduces the problem of ineffective dispute letters for removing late payments from credit reports. It emphasizes that the reason many people fail in their dispute attempts is because each credit bureau—Experian, Equifax, and TransUnion—operates under different rules and processes. The video promises to provide strategies to "beat them at their own game" and successfully remove late payments by tailoring the dispute approach to each specific bureau.
Understanding the Impact of Late Payments [0:16]
The video highlights the significant negative impact of late payments on credit scores, noting that a single late payment can drop a credit score by as much as 100 points. This negative mark can remain on a credit report for up to seven years. The video underscores the importance of addressing and correcting any incorrectly reported late payments to avoid unfairly damaging one's credit.
Common Mistakes in Disputing Late Payments [0:33]
The video addresses the common mistake of assuming that all three credit bureaus—Experian, Equifax, and TransUnion—follow the same dispute process. It clarifies that each bureau has its own internal rules and procedures for handling disputes. Therefore, a generic dispute strategy is ineffective, and a tailored approach is necessary for each bureau to maximize the chances of successful late payment removal.
How to Dispute Late Payments with Experian [0:55]
The video details the specific strategy for disputing late payments with Experian. Experian relies heavily on automated verification systems, often verifying late payments without direct confirmation from the lender, which violates FCRA Section 611. To counter this, the video advises requesting a "method of verification" from Experian. If Experian cannot provide real evidence of the late payment, it must be deleted. If Experian claims the late payment is verified, demand a detailed explanation of how it was verified; lack of clear proof is grounds for deletion.
How to Dispute Late Payments with Equifax [1:31]
The video explains how to dispute late payments with Equifax, noting that Equifax adheres to Metro 2 compliance standards, which require reporting to be complete, accurate, and verifiable. If a lender does not report according to Metro 2 guidelines, the record can be challenged as incomplete and unverifiable. The video advises checking for missing payment history codes, gaps in reporting, inconsistent dates, and payment amount discrepancies. Any of these errors require Equifax to correct or remove the late payment.
How to Dispute Late Payments with TransUnion [2:03]
The video outlines the process for disputing late payments with TransUnion. TransUnion requires creditors to provide proof of late payments under FCRA Section 623 A1A, meaning they must have documented records. To dispute, send a direct dispute to TransUnion requesting creditor documentation. If they cannot provide this documentation within 30 days, the late payment must be removed. If TransUnion claims the late payment is verified, request all communication between TransUnion and the creditor; the absence of actual proof is a violation of your rights.
Following Up on Your Disputes [2:41]
The video stresses the importance of following up on submitted disputes. Each credit bureau must respond within 30 days. If a bureau fails to respond, the video advises escalating the dispute by sending another round of letters or filing a complaint with the Consumer Financial Protection Bureau (CFPB) against both the bureau and the lender for failing to provide proper documentation.
Recap and Final Tips [3:10]
The video recaps the specific strategies for each credit bureau: for Experian, demand a method of verification; for Equifax, challenge Metro 2 compliance issues; and for TransUnion, require actual creditor documentation. It reiterates that if the bureaus fail to comply and remove the late payments, filing a CFPB complaint and escalating the issue is the next step.
Engage with Us: Share Your Experience [3:27]
The video concludes by encouraging viewers to share their experiences with removing late payments in the comments. It invites viewers to ask questions for further assistance.
