After sending out the first round of letters, different results may arise from each of your disputes. Some potential scenarios and how to respond to them are described below:

• If the CRA responds within the 30-day period, and failed to validate the items as reported by the creditor or collection agency, they will remove the disputed information.

• If the CRA responds within the 30-day period that they were able to validate the items as they are currently reported, you will need to contact the creditor or collection agency who reported the items to your credit file. If the item is truly erroneous (e.g.: a closed account over 7 years old), a creditor is usually amenable to your request. You may need to provide documentation to a creditor or collection agency to persuade them to report changes to the CRA.

However, if you knew the debt was valid and you were disputing as a strategy for removal from your credit file due to the 30-day limit for validation, put your negotiation skills to good use. It is possible to negotiate with a creditor for deletions and/or changes to information reported to your credit file provided you pay a past due balance in full, or bring payment history to “current” status.

The likelihood a creditor will delete late payment information is limited, but worth trying if you are diligent. Whatever terms reached and/or payment records stemming from them must be documented. If the creditor fails to report changes to the CRA directly, you will have to start a new dispute with the CRA yourself based on the negotiated payment for deletion or change and provide documentation.

Negotiating with collection agencies is a harrowing process; please see “Collection Accounts” for tips, tools, and potential traps.

• If there is no response from the CRAs within the 30-day period, they are required to delete the item being disputed. You will need to send a second letter for these items stating the CRA has failed to respond to your last correspondence disputing the items, and demand they be removed from your credit file per FCRA regulations. This deletion demand can be done regardless of validation, as the CRA failed to respond to you within 30 days.

• If the CRA responds during the 30-day period stating they have “received” your dispute information and will be investigating over 30 days from the date of the “received” letter, it is essentially a trick to extend the validation deadline. The 30-day period starts with your dispute letter, not the day they inform you they “received” your dispute letter. Track 30 days from the letter you sent; if you do not receive validation of the debt information you disputed, demand a deletion or change with a second letter.

Regardless of how your disputes are resolved, it is best get monitor your credit file to ensure the deletions or changes have been made (see “Part IV: Credit Monitoring”).
References:

Federal Trade Commission. Facts for Consumers: Building a Better Credit Report.

NeighborWorks America. Realizing the American Dream: A Manual for Homebuyers, 3rd Edition.