This form is to be used when a collection company is demanding full payment from you and you disagree with the balance. Use this form as your first letter of dispute.
A Section 604 dispute letter for charge off is a written communication submitted to credit reporting agencies (Crash) to dispute and seek rectification of inaccurate or incomplete information related to a charged-off debt. It is based on the provisions outlined in Section 604 of the Fair Credit Reporting Act (FCRA), which grants consumers the right to challenge questionable entries on their credit reports. When a creditor deems a debt uncollectible, they may choose to charge it off. This means that the creditor has declared the debt as a loss for accounting purposes. However, charge-offs can significantly impact an individual's credit score and overall financial standing. Hence, it's crucial to scrutinize the accuracy of such entries to ensure fair reporting and maintain a healthy credit history. There are generally three types of Section 604 dispute letters for charge-offs: 1. Validation Dispute Letter: This type of letter aims to request the creditor to provide documented proof that validates the existence and accuracy of the charged-off debt. A validation dispute letter requests the creditor to substantiate the original debt amount, creditor identity, and contractual agreement regarding the debt. 2. Consent Dispute Letter: A consent dispute letter addresses situations where the creditor has sold or transferred the debt to a third-party collection agency. By sending a consent dispute letter, consumers request proof that the creditor has provided proper authorization to the collection agency to collect on the debt. 3. Corrective Dispute Letter: If inaccuracies or incomplete information exist in the creditor's reporting about the charged-off debt, a corrective dispute letter can be sent. This letter requests the creditor to rectify any errors, such as incorrect dates, amounts, or misleading information, which may have a significant impact on the consumer's creditworthiness. In all types of Section 604 dispute letters for charge-offs, it is advisable to include relevant supporting documents, such as account statements, payment records, or any other evidence that strengthens the case for disputing the charge-off. Remember, the FCRA mandates that the Crash investigate and respond to consumer disputes within 30 days, either by modifying, deleting, or maintaining the disputed information. Hence, these dispute letters are vital tools for individuals to exercise their rights, ensure accurate credit reporting, and protect their financial reputation.
