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- Lesson 6 – Beyond Round 1VIDEO · 19 MIN·PREREQUISITE
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Lesson 6 – Text
Beyond Round 1
(Text to Read)
You’ve sent out your round one letters, now what?For starters, expect each of the 3 bureaus to mail you a response, but also expect some push-back. This is totally normal. One or more of the credit bureaus may fail to respond or respond with a stall letter.
- How do you handle those situations?
- What if the credit bureaus verify the information is accurate, what do you do then?
- What letters do you send?
- How often do you send them?
I will explain all of this to you in this lesson plus much more.
Common ResponsesThe FCRA requires the credit bureaus and sometimes the furnisher to send a written response, depending on the situation – but for the most part, you should always expect a response. Typically, each credit bureau will send you either a full credit report or partial report with a cover page that summarizes the changes. Generally they are easy to read and understand. The responses are important because it lets you know whether or not the disputed information was modified or removed, but it also provides important clues. Deciphering the responses may seem complicated but it’s really not.
We’re going to start by talking about Credit Bureau Responses. The credit bureaus (Equifax, Experian and TransUnion) have developed a system of stalling the credit repair process and discouraging consumers from repairing their credit. Some of the stall tactics include sending letters designed to make you believe they wont do what you want.
Some of the most common stall letters are:
- A letter saying they received a suspicious request to access your credit file.
- A letter stating that the request you sent them was not legible
- They may say they require additional documents to verify your identity
- Another very common response is “Your request was deemed frivolous and will NOT be investigated.”
When you are faced with such disappointing responses, many people simply give up. Don’t give up! You should expect these response at some point during the process, the credit bureaus will use these tactics, so be ready for them. When your faced with a stall tactic, leverage your rights and aggressively re-initiate the investigation. The course your taking today is a Basic Disputing Course, so I will not be going over every scenario, but what I can tell you is that here at Credit Repair Cloud, we have over 100 letters, training, support and an amazing community of credit experts that will help you tackle any situation.
Although many of the responses you receive will be designed to discourage you, you will also be surprised at how the bureaus often delete items, sometimes items you would think would be difficult just fall off. When it comes to furnisher responses, it’s common for a furnisher to respond to a dispute asking for more information or evidence the account is incorrect. They often use similar stall tactics just like the credit bureaus. You can expect vague responses, often no response at all – but again, this is where you can leverage your rights as a consumer.
For example, if a furnisher doesn’t respond to a simple dispute letter – you can demand validation. When you do this, it places the burden of proof on the furnisher to supply you with actual proof the account is correct. You may receive a simple letter saying the account is valid, you or may receive a massive envelope with your original contract and copies of every account statement going back 10 years. So with that being said, you can expect a wide range of responses from the furnishers.
3 Primary CategoriesThe next step you take depends on the response you received. There are many ways it can go… But for the sake of simplicity, I have categorized all of the different response types into 3 primary categories:
- No Response – meaning you do not receive any response in the mail.
- Verified – meaning, the bureau refuses to delete them. This could be a verification letter, or a stall letter or a request for more information, regardless of the details – we categorize this as Verified.
- Deleted – this is the result you want – the bureau removed the information from your report!
It’s very important that you understand how to handle responses correctly because it these quick little decisions will play a huge role in your overall success.
– NO RESPONSE: If a credit bureau fails to respond to a dispute you sent, for example of the 3 letters you sent, Experian doesn’t respond… It’s ok, don’t take it personally – you should always simply follow up by using the “No Response” letter template. This will usually get their attention without having to make any threats. So, again, whenever a credit bureau simply fails to respond to your round 1 letter – just fill out the “No Response” letter template and drop it in the mail.
– VERIFIED: Next, let’s say that Equifax responds to the letter you mailed them and verifies the information refusing to delete it. That’s ok, the key here is persistence. Don’t take no for an answer – ever! In this situation, simply use the “Re-investigation” letter, change the text as you see fit and drop it in your mailbox. Easy. – DELETED: Finally, it is very possible you get good news back, TransUnion deleted some or all of the items you disputed… AWESOME! What do you do next: You should dispute more items using the same exact Round 1 letter! Yup, start over at the beginning and challenge more items!
Remember, every cycle will be different. Each credit bureau maintains their own records and has different procedures, so you will often see items removed on one bureau, but not the next. It can become complicated keeping track of all of the results. Those of you taking advantage of the Credit Repair Cloud software, don’t really need to worry about this. The system makes it super easy to keep track of everything. So, now you know what the responses “no response”, “verified” and “deleted” mean and how to respond, so send out your follow up letters and wait another 30 days.
Responses from Round 1This is where we left off on the dispute process chart, we sent round 1. Now, you need to identify the outcome from the first round. Take a look at the responses. Each of the 3 bureaus should have sent you a letter.
- NO RESPONSE – If any of them failed to do this, you now need to send Letter #2 “The No Response letter”.
- VERIFIED – If any of the credit bureaus verified the items you disputed, you should send Letter #3 “The Re-investigation Letter”
- DELETED – What if the credit bureau deleted all the items? Awesome! You can go back and dispute more items using the same Round #1 Letter.
It’s really that simple.
Follow Up with the Credit BureausPlease take a look at the attached “Basic Disputing Flowchart”, specifically “Round 2” so you can start connecting the dots.Now that you’ve sent your follow up letters, you can see this cycle is JUST LIKE like the last cycle. You look at the responses and determine what to do next, you fire off your next cycle of letters, then you wait for the next round of responses.
Send a Warning ShotSo at this point, you sent a Round 1 letter and depending on the results you received – or lack thereof, you have either sent a “No response” letter or a “Re-investigation” letter.
When you get the next round of results, just like last time – inspect them. If you got a bunch of deletions – AWESOME. Just like before, you can always revert back to Round 1 and dispute more items. But, if that’s not the case and the credit bureaus are still ignoring you, or responding inappropriately, it’s time to send a warning shot. The bureau warning letter is a bit more aggressive – making it very clear that you mean business. So, if that’s the case, go ahead and fire off a warning letter to each bureau that is not taking you seriously.
Furnisher Disputes We just talked about disputing with the credit bureaus. As I said before, I’ll say it again: persistence pays. The process of disputing items with the bureaus can be repeated as many times as you like.
Often, when you least expect it; even when you have disputed an item 10 times – all of the sudden on the 11th attempt it magically disappears! So don’t give up – but also consider other options such as furnisher disputes. When you have exhausted your efforts with the bureaus and progress seems to have slowed down, the next step is to contact the companies that reported the negative information – these are called furnishers.
Furnishers can be creditors like credit card companies, banks, lenders or collection agencies. There are many others such as landlords, child support courts, bankruptcy court and more. Anyone that reported information about you is a furnisher and subject to the same laws and… many of the laws that regulate the credit bureaus also regulate the furnishers, in some cases the laws are even more stringent.
Go ahead and send letter #5 “Dispute with Furnisher” and just like you did on the first step with the credit bureaus, you will include a reason and instruction for each item you are disputing. Easy peasy, fill in the blanks and fire off your first letters. You can send a letter to some or all of your furnishers, that is really up to you. You will then sit back and relax while you wait for the results.
Follow Up with Furnishers
After 30 days or so, review the responses. Just like we did with the credit bureaus, we are looking for the results of each investigation. Look to see what was received and determine if the furnishers responded, verified or deleted the items you disputed.
- If no response was received from any of furnishers, go ahead and use Letter #6, No Response.
- If any of the furnishers verified the item you disputed, go ahead and send letter #7, Re-investigation.
- If the furnisher deleted the item, awesome! You can dispute more items using the same old letter #5.
Drop your letters in the mail and wait for the results.
Results from Furnisher Follow UpI’m including a full image of Round 5 so you can connect the dots. Now that you’ve sent your follow up letters to the furnishers, you can see this cycle is JUST LIKE the last cycle. Look at the responses from your follow up letters and determine what to do next. What was the response? Verified, no response or deleted?
Send a Warning Shot If the furnisher deleted everything, that’s great – you can go back again and send “Letter #5, Dispute with Furnisher” and challenge some more items. If the furnishers verified the items or failed to respond – it’s time to take your warning shot! Let them know you mean business and send Letter #8, Creditor Warning letters to each of the furnishers that did not respond with a deletion. Send out your warning letters, and wait for a response.
Demand ValidationSo far, you have disputed items with the bureaus, followed up with them and sent a warning. If that didn’t work, you switched gears and sent disputes to furnishers, followed up and sent warnings the creditors or debt collection agencies. If that doesn’t get the items deleted, there are still plenty of strategies to keep keep chipping away to get them removed. Although this is a “basic disputing course” I am starting to move into advanced waters, – but I would like to offer at least two more options for you at this stage.
Now that you sent warnings to the furnishers that either did not respond or did not delete what you asked, the next step would be to demand validation. Debt validation is typically only used on debt collection agencies, unless your state law provides otherwise, the FDCPA only requires debt collectors, not original creditors, to verify debts. You still can always try even if it is not a 3rd party debt collector. The right to request verification of the debt is provided by the federal Fair Debt Collection Practices Act (FDCPA). The law was enacted to allow consumers to obtain more information about the debt that is being collected and to act as an informal dispute resolution system between consumers and their collectors.
There are many instances when you may want to request verification of the debt.
Some may include:
- Perhaps you don’t recognize or remember incurring the debt being collected.
- You may feel that the amount of the debt may not be correct.
- Maybe the debt is expired or not yours at all.
You want to verify that the collector actually owns the debt it is trying to collect. Even if you have no reason to contest the validity of the debt, the FDCPA still allows you to request verification. This means that even if the debt is legitimately yours and is owed, you still have a right to request verification. A debt collector may not ask you to cite reasons why you want verification of the debt.
So, go ahead and give it a whirl. Send Letter #9 Validation Demand and wait 30 days.
Send EstoppelSo you’ve sent a validation letter to the furnishers that either ignored or verified your previous disputes. Your next step depends on the response from the furnishers. Did they delete the item from your report? If yes, GREAT! You can dispute more items using letter #5.
DId they ignore your validation demand? If yes, the next logical step would be to send Letter #10 – Estoppel by Silence. This is a letter that can be extremely powerful when debt collectors ignore a request for verification. Essentially it tells the collection agency that by being silent, they must agree with you. So, if you reach this point and the debt collectors ignore your validation demand, go ahead and fill out the Estoppel By Silence Letter #10 and mail it out.
So what comes next? Just like every other round, it depends on the responses you receive.
Throughout this course, I have articulated some of the most basic strategies and scenarios. By now, you should be able to put a finger on 90% of the process, but just like anything in life – the more you put into something, the more you get out of it. The best way to level up and truly understand credit repair, is to do it yourself. You’ve run the basic disputing options full course – at this point you have the option to either start over from the beginning with Letter #1 and dispute again with the credit bureaus or use letter #5 and dispute with the furnishers. There are also many additional strategies and advanced options you can learn.
Be Persistent & Apply PressureIt appears we’ve gone full circle. At this point, you should have a fundamental understanding of the credit system and the laws that can be used to your advantage as well as some of the basic strategies to repair your credit.
- With credit repair – you’ve got to be persistent and apply pressure every step of the way!
- Whatever you do, make sure you do not take the responses or lack thereof personally.
- The bureaus will usually do everything within their power to convince you that your efforts are in vain.
- Never give up when you encounter resistance – just keep applying pressure.
- Think of credit repair as a little bit of work, every once in awhile over a long period of time, 99.99% of the time is waiting for mail to arrive.
- Some people with minimal problems, or people that have proof finish very quickly.
- But the majority of credit repair requires you to fight a bit. So again, whatever you do – never give up!
- Many people that have major problems follow the process I’ve outlined in this course and are able to move mountains quickly – sometimes getting all the items they dispute deleted on the first try.
You Got This
Whether you are repairing your credit for yourself or helping a friend, family member or maybe you want to build a credit repair empire, either way – you’ve got this! You can do it!
I gotta mention one more time that Credit Repair Cloud makes the process much, much easier. Everything from importing and auditing the credit reports with one click to automatically generating the letters and keeping track of the results, it literally makes everything a breeze – so easy you can do this in your sleep. We have made it not only easy and fast to get your business off the ground – we give you an actual blueprint and every tool you could possibly need, to become the next credit repair millionaire, like these guys here! Thousands of credit repair companies are using our software and many have become millionaires. By the way, most of the people in our millionaires club did not come from money or even a business background. Many didn’t even go to college. They learned credit repair by repairing their own credit after facing their own financial hardships. But when they started helping family and friends, and felt the satisfaction that you feel when you’re changing someone’s life, they were hooked. It’s that desire to help people that makes them so successful. If you set out to make money, sure you’ll make money, but you probably won’t have a very fulfilling life. But when you set out to help people and truly change lives, that is when you will have the greatest success.
Congrats! You’ve made it through the entire course. Now it’s time for your final exam! Once you have passed it, you will earn your diploma. Please make sure you have downloaded all of the documents attached to the course and I’ll see ya after the exam!
End of Lesson 6
Please proceed to the FINAL EXAM!
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