FTC New Law: Disputing With the Original Creditor

Effective July1, 2010, the new FTC law requires the original creditor of a consumer’s dispute to respond by conducting an investigation. The law does not permit them to verify the information but to do an actual investigation of the dispute.

Why is this one of the most powerful tool available to credit service consultants? Well, most creditors especially credit card companies only keep information for up to 13-16 months and as long as 24 months for a few. If your client have an account that at least 13 months old, chances are you will able have this account deleted off the credit report.

Just make sure you consider the credit score factors before disputing any account. Additionally make sure that you are requesting an investigation instead of verification.