What does it mean when an account is in dispute?
While the credit bureaus are conducting their investigation of the validity and accuracy of an account they will often times put the verbiage, “consumer disputes account information” or “information disputed by consumer” in the comments section of that particular account. Please note, that not all accounts will have the dispute comment.
How does this affect me?
If you are planning or in the process of purchasing a home you would most likely need to get that verbiage off your credit report. A large majority of mortgage lenders have adopted the practice of denying approval for mortgage financing if there are “consumer dispute statements” on the credit report.
How long does this process take to remove an account from dispute?
Each creditor has different procedures of removing the account from dispute. In our experience, we see that these accounts are properly updated within 7-60 days after we send out a letter requesting the removal. You can ask your creditor directly for a more accurate answer.
Is there anything I can do to speed up the process of removing the account from dispute?
Yes, in our experience, we have seen quicker results by calling the creditor, i.e. Capital One directly. Listed below are the steps we recommend to take to remove the dispute verbiage via phone. We have also attached a script that we’ve created.
how_to_remove_an_account_from_dispute
How to Remove an Account from Dispute by Phone:
1. Call the creditor directly. The phone number can be found on the credit report or online.
2. Explain to the representative what you need to be completed:
i.e. “I recently had my credit report pulled by my loan officer and noticed that there was a Compliance Condition Code listed under my account, it read: “Account Information Dispute by Consumer” Please remove this Compliance Condition Code by submitting a Universal Data Form to Equifax, Experian and Trans Union to remove the verbiage, “Account Information Dispute by Consumer”. I no longer dispute this account.”
*If the representative does not know what you are referring to, try getting transferred to a credit bureau dispute specialist or the department that handles reporting information to the credit bureaus.
3. Request that you get something in writing that confirms the creditor will remove the account from dispute.
Helpful Tip:
-Ask the creditor how long the process will take to update the account on your credit report.
