 TITLE: What Is a Direct Dispute? CONTENT: The Difference Between Direct and Indirect Disputes\n---------------------------------------------------\nThere are two types of credit report disputes defined by the FCRA: direct and indirect. Both are free to the consumer, but the disputing paths differ.\n*   **Direct disputes** occur when a consumer directly contacts the source of the information, also called the data furnisher, that provided what they believe to be incorrect information to the credit reporting company. For example, if a late payment for your ABC Bank credit card appears on your credit reports but you know you've made all your payments on time, you can contact the bank directly to notify them of the inaccuracy and ask that they contact the credit reporting companies and correct the information. This same scenario is applicable for any aspect of your account, like balances or dates, and any form of credit, such as mortgages, auto loans, personal loans and student loans.\n*   **Indirect disputes** occur when a consumer contacts a credit reporting company to dispute information being reported by a lender or other source. It's \"indirect\" because you are submitting your dispute to the credit reporting company, which then contacts the data furnisher—normally a financial services company or debt collector—and asks them to investigate the claim of inaccurate credit reporting.\nSome consumers may choose to contact both the data furnisher and the credit reporting company. If you feel a lender has reported information incorrectly, you may wish to contact them directly first and discuss the issue before filing a dispute with the credit reporting agencies. If the lender agrees with you, they can contact the credit reporting company and have the information corrected.\nWhether you contact the lender first or contact only the credit reporting company to initiate a dispute, the goal, of course, is to ensure the information on your credit reports is accurate. Either way, the lender will receive notice that you are disputing the information so they can investigate whether there has been an error. If the disputed information that appears on your credit report is deemed to be inaccurate, the lender will correct it or have it removed from your report.\nIn certain circumstances, the credit reporting company may be able to update the account information if you have documentation showing that a change should be made. For example, if you provide a letter from your lender stating that a loan has been paid off, you can submit that documentation to the credit reporting agencies, including Experian. Upon review, the reporting agency may be able to use the documentation to update the account right away.\nSimilarly, if a consumer claims one of their debts has been discharged in bankruptcy and provides a copy of their bankruptcy discharge paperwork and schedule of debtors, the credit reporting company may be able to simply update the consumer's credit report accordingly. END