How To Dispute A Collection On Your Credit Report

If you find any errors in your credit report, gather supporting documents first, then notify the credit bureaus and your creditors.

Your credit report plays a vital role in your ability to secure loans and other financial products, so maintaining its accuracy is highly important. In particular, having outdated or incomplete information related to debt collection may affect your credit score negatively.

If you notice discrepancies in account details, transactions, and dates, you may be wondering: Can I dispute a collection debt on a credit report? The answer is yes—you can and should dispute any errors in your credit report. Filing a dispute is free of charge and must be done as soon as possible.

Don't worry; there is a clear pathway to resolve this issue, and I'll walk you through the steps you need to take to get your credit report looking as sound as your financial habits.

Step-by-Step Guide: How To Dispute A Collection On Your Credit Report

Step 1: Review The Details

Check all entries thoroughly and take note of everything that needs to be updated. If you already repaid the debt, make sure that it says "paid" and that the balance shows zero. The date of last activity and the payment status should also be accurately reflected.

Step 2: Compile Supporting Documents

Documentation is key when disputing any discrepancies on your credit report. Gather all evidence of your payment including receipts, bank statements, and any communication with the creditor or collections agency.

Step 3: Contact The Credit Bureaus

If your credit report has not been updated correctly, reach out to the credit bureaus and provide them with all the evidence that proves the debt has been paid. You can easily file a dispute online with Equifax and TransUnion in Canada to have the information corrected. Take note that they are required to investigate any inaccuracies within 30 days.

Step 4: Reach Out To Creditors

At the same time, contact the creditor or the collection agency that reported the debt. Inform them of the discrepancy on your credit report and request that they update their records and notify the credit bureaus of the change. It's also helpful to get a letter from them that confirms the debt has been paid.

Step 5: Follow Up And Monitor Your Credit

Once you've completed these steps, follow up to confirm the implementation of the changes. You can keep an eye on your credit report by using the free services offered by the bureaus or by signing up for credit monitoring. We recommend keeping a close eye on your credit report, it can help you spot other issues and even improve your habits. Try taking a look once a month to stay informed and updated.

Once you've sorted out any issues on your credit report, it’s all about prioritizing your existing debts and maintaining healthy financial habits.

Here at Parachute, we’re committed to helping Canadians overcome debt and build financial resilience. More than just a loan, our debt consolidation services equip you with the knowledge and skills to manage your finances effectively in the long term. If you're facing high-interest debt and seeking a compassionate approach to consolidation, we're here to support your journey.

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