Stall Letter Guide

What Are Stall Letters?

Credit bureau stall letters are responses to disputes about inaccuracies on a credit report, claiming insufficient information or documentation. They aim to delay or dismiss the dispute, making consumers provide more evidence, which can be frustrating and time-consuming.

Why Do Bureaus Send These Stall Letters?

Credit bureaus send stall letters to delay the dispute process, often as a tactic to reduce the number of disputes they need to address promptly. By claiming insufficient information or documentation, they shift the burden back to the consumer, hoping some will give up or fail to provide the necessary details. This reduces the bureaus' workload and maintains the status quo of the credit report.

23 Ways to Deal with Credit Bureau Stall Letters

1. Ensure Complete Documentation: Provide all necessary identification and documents, such as the customer’s ID, Social Security card, and a utility bill, to avoid incomplete information claims.
2. Write a Thorough Response Letter: Create a detailed response letter that addresses each point raised in the stall letter, clearly explaining the validity of the dispute and reiterating the evidence.
3. Send Mail with Tracking: Use certified mail with return receipts for all correspondence to confirm that the credit bureau has received your dispute. (This is best used in certain cases.)
   
   
4. Include Your Credit Report: Attach a current copy of your customer’s credit report, marking the errors you are disputing.
   
   
5. Respond Promptly: Immediately provide the requested information and follow up within 30 days if your customer hasn't received a response from the credit bureau.
   
   
6. Avoid Online Dispute Systems: Send your disputes by mail rather than using online platforms to retain your customer’s full legal rights.
   
   
7. Keep Detailed Records: Maintain copies of all your customer’s dispute letters, responses, and supporting documents.
   
   
8. Use Legal References in Your Letters: Write your dispute letters with formal language and reference specific sections of the Fair Credit Reporting Act (FCRA) to assert your customer’s rights.
   
   
9. Directly Contact Creditors: Send dispute letters directly to creditors or collection agencies to request validation and correction of errors.
   
   
10. Be Persistent: Continue to dispute the issues even if you receive stall letters. Reiterate the law and provide any requested information.
    
    
11. Ask for Detailed Responses: Request specific information in your response letter to compel the bureau to provide thorough answers.
    
    
12. Add a Personal Touch: Resend your dispute with a handwritten note to emphasize its importance and add a personal element.
    
    
13. Get Your Letters Notarized: Strengthen your letters by having them notarized.
    
    
14. Inform and Reassure Clients: Explain potential stall tactics to your clients and provide them with regular updates to reassure them.
    
    
15. Use Fax for Quick Updates: Consider faxing your disputes for quicker processing and updates.
    
    
16. File Complaints with Authorities: If disputes are not addressed, file complaints with the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), the Attorney General's office in your customer's state and the credit bureau's state, and file a complaint with the Better Business Bureau.
    
    
17. Cite Consumer Protection Laws: Reference sections like 15 USC 1681 in your dispute letters to leverage the protection provided by consumer laws.
    
    
18. Escalate Within the Bureau: If initial responses are unsatisfactory, address your letters to supervisors or higher-level managers within the credit bureau.
    
    
19. Seek Help from Legal Clinics: Use free or low-cost legal clinics specializing in consumer law for additional guidance and support.
    
    
20. Consult Legal Experts: Consult a consumer rights attorney and consider legal actions, such as filing lawsuits, if necessary.
    
    
21. Take Legal Action in Small Claims Court: If the credit bureaus do not comply with dispute requirements, talk with an attorney and your customer about filing a lawsuit in small claims court.
    
    
22. Threaten Legal Action if Necessary: If the bureau is unresponsive or dismissive, mention the possibility of legal action in your correspondence. (Don’t mention it if your customer is not going to move forward with it.)
    
    
23. Expect a Response in 15 Days: Respond back to the bureaus and let them know that you recognize it’s a stall letter and expect them to continue their investigation and respond within the time frame allowed by law.

By implementing these strategies, you can effectively manage and counteract stall letters, ensuring that disputes are addressed promptly and accurately. This approach not only protects consumer rights but also enhances the credibility and effectiveness of your credit repair company.