Section 609 “Loophole”

Section (609) of the Fair Credit Reporting Act is a Consumers Disclosure section which is to provide for the protection of consumers against false and erroneous reporting. This section of the FCRA places the burden upon the Credit Bureaus and the Creditor to prove an account is yours. To positively prove an account is yours, the creditor must provide the Credit Bureau a copy of the original creditor’s documentation (whatever you filled out and signed upon opening the account with the reporting creditor).

The FCRA was enacted by Congress to protect consumers from unverifiable accounts and information from being reported on your credit report. Example: If you filed a suit against someone and you showed up in court with no proof against that person, what would the judge do – throw the case out of court! Without documentation, the Credit Bureaus have NO right to list your personal financial information on your credit report. They are required by law to verify and validate every single account on your report.

A 609 letter is a letter used to dispute errors or other inaccuracies off your credit report. It can be used to remove collections, public records such as bankruptcies/tax liens/repo’s/evictions, derogatory accounts, Closed accounts, Charged Off Accounts, hard inquiries, and late payments. Removing these negative items will help to raise your credit score.

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