Fair Credit & Low Rates

by Peter G. Miller
April 11th, 2008

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“I HAVE BEEN IN A CHAPTER 13 FOR 36 MTHS. AND COMPLETED IT ON TIME WITH NO LATES PAYS,THE PROBLEM I HAVE IS THE FESABILTY PROBLEM WHICH IS 8000.00 I TRYED TO GET MY HOUSE REFI. WITH FHA. THEY WILL NOT DO IT BECAUSE OF 2 RETURNED CHECKS ON MY CREDIT REPORT WHICH I PAID. IS THERE ANY HELP OUT THERE?”

Actually, yes. About those two returned checks. If your credit report is factually incorrect you can do something about it under the Fair Credit Billing Act.

Under the rule, says the Federal Trade Commission, you can complain if there has been a “failure to post payments and other credits.”

The FTC says:

___You must write to the creditor at the address given for “billing inquiries,” not the address for sending your payments, and include your name, address, account number and a description of the billing error.

___Send your letter so that it reaches the creditor within 60 days after the first bill containing the error was mailed to you.

___Send your letter by certified mail, return receipt requested, so you have proof of what the creditor received. Include copies (not originals) of sales slips or other documents that support your position. Keep a copy of your dispute letter.

___The creditor must acknowledge your complaint in writing within 30 days after receiving it, unless the problem has been resolved. The creditor must resolve the dispute within two billing cycles (but not more than 90 days) after receiving your letter.

It is extremely important to correct credit reports. If a report is incorrect you could be forced to pay a higher rate of interest or denied credit — meaning you could be forced to get a subprime loan or not offered any mortgage.

For specifics, see: Fair Credit Billing.

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