The name of the phrase comes from the idea that 11 specific words should be used in a credit dispute letter in an attempt to force the removal of negative items from one’s credit report. Under the law, credit bureaus such as Experian, Equifax, and TransUnion should investigate any dispute and also provide proof when they affirm negative data.
The loophole is that, by including the 11 words in your dispute letter, it becomes difficult for the credit bureaos to prove that the negative item is factual. In theory, this means that they might delete some items as they cannot authenticate them.
The 11 word phrase itself is not disclosed to the public due to legal constraints. Of course, those who think they know the phrases will seek to cash in on it through credit repair consulting or books. However, I haven’t found any proof that there is any 11 word phrase responsible for the same power of credit improvement.
In short – no. Credit experts and consumer advocacy groups do not believe in the existence of any 11 word credit loophole.
The credit reporting system in the United States is almost completely governed by the Fair Credit Reporting Act, or FCRA. The law provides that credit bureaus should have adequate measures in place to ensure that the information in the consumer credit reports are as accurate as possible.
Even though you are legally allowed to challenge any inaccurate or unsubstantiated information appearing on your report, there is no proof that reciting a certain 11 word phrase can help eliminate negative items if only they are true and provable.
Ways of Challenging Credit Report Mistakes
If there are real mistakes and or false information or old information on your credit reports, then you definitely should dispute it. Here are some tips for effectively disputing credit report items:Here are some tips for effectively disputing credit report items:
- Always go through all three credit reports thoroughly and take the time to put a note on all the items that are inaccurate. The free annual credit reporting can be obtained from the website AnnualCreditReport.com.
- Writing preliminary letters of dispute that must contain details and information on the item(s) that is believed to be inaccurate and any document that you have (a payment receipt, court documents, etc.).
- Always use certified mail, return receipt requested when sending out the dispute letters. Specify your full name as well as your address, date of birth, and your Social Security number to ensure that the bureau can locate your file.
- Do not take any action without first waiting for the results of the credit bureau’s reinvestigation. Under the FCRA, they usually have 30 days to reply to the request.
- Understand that you may be required to go through the process again if the first attempt at dispute is not effective. If an item is verified as accurate you may submit a written statement of not more than one hundred words along with your credit file explaining why the item is accurate.
It might be noted that there is no magic phrase that can ensure that a credit reporting agency will remove an error but following the correct procedure does entitle you to the correct procedure according to your rights under the federal law. One should be constant, collect concrete evidence and it is possible that incorrect information will be removed from credit history.
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