A12

							Should You Dispute With The Original Creditor?

Many times people will blindly dispute any and all negative items on a credit report,
including the original creditor, and by doing so will suffer unintentional
consequences. This is often referred to as waking a sleeping giant. We will give you
an example of this by using a charged off credit card account as an example. Lets
pretend that you had a credit card that you could not continue to pay on due to an
unexpected hardship. First the card would report late payments and then after
about four months of missed payments they would most likely charge off the
account, close it, and engage a collection agency to collect the debt on their behalf.
This will usually result in two accounts reporting to your credit relating to the
account. First, the original creditor would be reporting the closed account and have
it marked as a charged off account. Second, the company that is now collecting the
debt on behalf of the original company will be reporting a collection account.

Attempting to blindly dispute information can awaken the sleeping giant so to speak.
Sometimes the original creditor will over look an account and not pursue a
judgment or lawsuit for the unpaid balance. If you leave the account alone and wait
for the statute of limitations to expire this can prevent them from suing you in the
future for the unpaid balance. If you dispute the item with the credit bureaus they
will then contact the original creditor and request that they verify the account
information and ownership. This will alert them about the unpaid debt and in some
situations they may begin to pursue the collection activity again and may even seek
a judgment, which will further damage your credit score. Sometimes the best plan of
attack is to leave some accounts alone and let time play a role in the credit clean up
process.

Each state has different time frames for the statue of limitations, and they often vary
depending on the type of debt and account. You first will want to make note of your
states statute of limitations in relation to the account in question. For example, a
credit card debt may have a different time then a car loan. If the debts are older and
past the statute of limitations then disputing them will not put you in danger of a
potential lawsuit. Even so, it is wise to seek the help of a professional and not just
blindly disputing an item on your credit reports. The credit repair process is a very
specific and calculated step-by-step process that must be done correctly to work
correctly. Entries put on your credit report by a collection company are something
that can be attacked regardless of when they were reported. The FDCPA protects the
consumer from unethical and illegal collection practices that many of these
companies are notorious for. Experienced credit repair companies know exactly how
to deal with these companies and help you rid them from your credit reports and in
return improve your credit scores. Whether you need help dealing with original
creditors, collection agencies, or any other negative issue with your credit reports,
you can find the help you require by contacting Credit Restore USA today and
enrolling in their credit repair service.