Direct Dispute of Inaccurate Information
Date: 2026-01-18 From: Cody Rice-Velasquez To: Financial Center First Credit Union Disputes / Compliance Department [Address]
RE: Direct Dispute of Tradeline Accuracy – Account #[ACCOUNT_NUMBER]
To the Compliance Department:
I am writing to formally dispute the accuracy of the information you are furnishing to the consumer reporting agencies (Equifax, Experian, and TransUnion) regarding the above-referenced account(s).
This dispute is filed in accordance with Section 623(a)(8) of the Fair Credit Reporting Act (15 U.S.C. § 1681s-2(a)(8)) and Regulation V (12 C.F.R. § 1022.43).
Specific Errors Disputed
You are currently reporting this account as active, delinquent, and accumulating a past due balance. This is factually and legally incorrect for the following reasons:
- Debt Extinguishment via Judgment: A foreclosure judgment was entered on [INSERT DATE], which merged the note and mortgage into the judgment. There is no longer an “installment loan” contract in existence to report late payments on.
- Sheriff Sale: The property was sold on [INSERT DATE], extinguishing any security interest and ending any accrual of post-judgment interest or fees reportable as consumer credit delinquency.
- Writ of Assistance: The court process has moved to possession/eviction. Continued reporting of “missed payments” for months after the judgment and sale constitutes a misrepresentation of the legal status of the debt, violating both the FCRA and the FDCPA.
Required Correction
I request that you immediately update the tradelines with all three bureaus to reflect:
- Balance: $0.00 (or the fixed deficiency amount if legally established, not an evolving monthly contract balance).
- Status: “Closed,” “Foreclosure,” or “Paid,” effectively stopping the monthly “Late” reporting.
- Pay History: Remove all late markers reported after the date of judgment/sale.
Supporting Documentation
Attached you will find:
- Credit Report Excerpt: Showing the erroneous “Late” reporting for [Month/Year] through [Month/Year].
- Court Judgment: Establishing the date of merger.
- Sheriff Sale Record: Confirming the disposition of the collateral.
Notice of Liability
Failure to investigate and correct this specific dispute after receipt of this notice may render Financial Center First Credit Union liable for willful noncompliance under 15 U.S.C. § 1681n, which allows for statutory damages, punitive damages, and attorney fees.
Please provide a written response confirming the correction within 30 days as required by law.
Sincerely,
Cody Rice-Velasquez