Transcription
Stop disputing charge offs the wrong way. Every single guru telling you just dispute the balance is leading you straight into a dead end because the balance means nothing. The CFPB cannot delete it and filing the wrong dispute wastes months of your life.
So, on today's video, I'm exposing the 100% legal strategy to delete charge offs, build a paper trail, and potentially even get legal representation for free. But first, I want to break down some of the myths that are wrong. Let's just call it what it is. The good old dispute the balance is 100% wrong.
Because if you dispute the balance and just the balance, you're telling them how to fix it. We don't want to tell them how to fix it. We want to tell them that everything's wrong, because I would say more than 99% of the time it is. And the biggest myth of all, the CFPB will delete it if you complain, which is wrong because the CFPB, the Consumer Finance Protection Bureau, is not a disputing platform. It is a complaint center for consumers. You can send a dispute letter all you want, but if you didn't dispute it first with the creditor, the debt collector, the credit reporting agencies, you have nothing. You have built no case. You want to dispute it and then bring it to the CFPB showing them proof that they didn't take any action. And my favorite of all, using special UCCC code letters equals a complete scam. We just need to stop falling for TikTok fairy tales because charge offs are the highest level of delinquency on a credit report. And if you don't handle it properly, it'll follow you for up to 7 years. And of course, people will always say, "Well, I'll just pay it. That'll fix it." No. Paying a charge off only marks it paid and settled and it's still a charge off. The status of charge off is what's damaging your credit profile. It's not the amount. That's why I said the amount means nothing. But hold on, stick with me to the end because that amount, if it's still reporting, is actually going to help you.
Listen, I've been repairing credit for over 15 years. I've seen every trick, every loophole, every scam letter people think works. But the truth is only two things consistently stand a chance against charge offs: being number one, Metro 2 compliance attacks, because at the end of the day, everything on your credit report is structured in Metro 2 compliance, and if it doesn't meet the standard of reporting, which that's exactly what Metro 2 is, it must be deleted. And number two, building a legal case with proper documentation. Hear what I just said, with proper documentation. Because a lot of people say, "I'm just going to sue them." And then you take your case to an attorney, and they're like, "Well, you, you want me to sue them based on your word?" No, you need to build a case and then bring it to a consumer law attorney.
Always remember, stick to this general rule when you're always dealing with any type of consumer law attorneys. They don't want to take a case that they don't know they're going to win because consumer law attorneys usually work on a contingency basis, meaning they take zero payment until you win the lawsuit. So, they're actually front-loading all of the cost for the case until they close it and they successfully either settle it or they get, they actually get a lawsuit and get money out of it. Either or, they don't get paid up front. If you're working with a consumer law attorney that wants money up front, you need to go ahead and fire them because that tells you right there, they're most likely not going to win that case.
But before we jump in, make sure to smash that like button so YouTube pushes this video out to more people trapped by charge offs. And if you're new here, subscribe, of course, because this channel is about raw, uncut credit game tactics that actually work. So, I'm going to break this video down into four very important steps that you do not want to miss. So, let's go and jump right in with step number one, requesting the 1099.
First, we want to explain the charge off, which is going to equal the creditor claimed a loss. Now, what they should do is they issue a 1099-C, which is called a cancellation of debt, to the IRS. But of course, many times they don't, and that is your leverage. Now, we're going to write a very simple letter. Nothing scammy, no UCCC codes. Keep it short and simple and to the point because we want to sound as much as we can like we are just a regular human being because they don't expect regular everyday people to know this information. Remember that in your letter, you're going to simply state, "Dear creditor," you're going to put the name of Capital One, Chase Bank, whoever it may be. "It appears you charged off this account on my credit report. Yet, I have not received a 1099. Can you kindly send me the proper 1099 for this item? I greatly appreciate it." Now, remember, when you send this, you must send it certified mail with return receipt because documentation matters. We want to make a very clear trail of documentation because it builds your case. Remember, we're not going to pull up to the CFPB with the dispute letter. We're going to pull up with real viable proof.
Now, the first thing people will say in the comments, "Oh, a 1099 means that that's taxable income. You owe debt now to the IRS. This is not good. Don't do it, people." Yes. Yes, I know. Okay. But now we're going to move on to step number two, which is the tax loophole. When you get the 1099, creditors will scare you and say it's taxable income. But in reality, there's something called a Form 982, Insolvency Exclusion, because 90% of Americans qualify as insolvent. Your debts are greater than your assets, meaning the IRS may forgive it. So get a tax professional to file the 1099 with Form 982, and that debt equals legally extinguished.
I want to give a special shout out to all my beasters out there that are working hard to fix their credit using Dispute Beast, the most advanced AI credit repair software ever created that comes with a 110% money back guarantee. But specifically to Kennet. Kennet's credit score went up 282 points after just one round with Dispute Beast. And Arthur. Arthur's credit score went up 670 points after just two rounds with Dispute Beast. But let's not forget Destiny. Destiny's credit score went up 264 points after just one round with Dispute Beast. Dispute Beast link is going to be in the video description and pinned at the top of the comments for anyone that needs to fix their credit. And don't go to an H&R Block because the majority of these people are only pushing buttons. You want to go to a real accountant/tax professional that understands Form 982. Or if you feel comfortable, have Chat GPT write it up for you.
Now, we're going to move on to step number three where we attack the credit bureaus. Now, the creditor reported the debt as a loss. Correct. But it's still showing a balance on your report, and that's not accurate. It's inaccurate. And this time, we're going to send a simple dispute letter to any credit reporting agency that is reporting the item on your credit report. That means Experian, Equifax, and TransUnion, and any of the secondary credit reporting agencies. Also, no, you don't want to freeze them. You want to attack them. Freezing them is just going to leave it on your credit report. And in all reality, it does nothing to freeze them because they still have access to all secondary credit reporting agencies even if you freeze them. So stop listening to these amateurs out there. As you can see, I get really amped up about this because it makes me angry that they continue to spread this lie that, oh, freeze the secondary bureaus. It makes it easier. No, it doesn't. It makes you just leave it there and it does nothing. So again, we're going to attack it everywhere at every credit reporting agency. Let me give you the list real quick because you need to look to see where it's reporting.
Now, when I say all credit reporting agencies, I'm referring to Experian, TransUnion, Equifax, LexisNexis, LCI, Anovvice, ARS, Credit, Clarity, Data X, Microbuilt, and Factor Trust. That is a total of 12 credit reporting agencies that you need to attack these negative items with. Now, in your letter, you're going to simply state, "This account is reporting a balance even though it's been cancelled with a 1099. The date of first activity is wrong. The date of first delinquency is wrong. The account status, the account number." You see where I'm going here? We're going to name everything that is wrong on the item and we're going to make sure that we put it in the letter again. Now, we're going to send it certified mail with return receipt and we're going to make copies of all of them and save all of them. You're also going to make copies of your receipt where you mailed it.
Now, if they respond verified, because remember, this is an automated system. You're going to send round two. You did not address my dispute accurately and completely. And if you have to move to a final round three, which is what I call the final warning.
Now, we're moving to step number four, which is building a case. After two to three rounds, if they still don't delete it, boom, you've built a legal case. And now you have evidence of inaccuracies plus proof they ignored multiple disputes. That's gold for a legal team. Last part's the most important. You have two paths that you can take here. You can take all of your proof, meaning your dispute letters, your responses, and you can file a complaint with the CFPB, telling them that you demand deletion because they did nothing and they did not do a full investigation. Now, understand, the CFPB is floating on fumes. We don't know how long they're going to be able to, to actually be open because there's literally less than 200 employees versus 1,200 employees, which is pretty crazy for the entire United States. So, just remember that. So, you submit all of your documentation at the CFPB website, the Consumer Finance Protection Bureau, and that's when you file a complaint, and usually they'll respond within 15 days.
Now, your second option is to take all of your proof and find a local consumer law attorney in your area. And as I stated earlier, you bring all of your letters, all of your documentation, and tell them about your case. And they have to take the case on a contingency plan, meaning they don't get paid unless you win. But there is a third and final option. You file a lawsuit in small claims court against the actual credit reporting agencies, and you bring proof. That's all you need.
Now, let's do a four-step recap of the strategy. Number one, get the 1099. Number two, file Form 982 of insolvency with a tax professional. Number three, dispute the inaccuracies. And number four, build a legal case.
Now, make sure to comment the word "charge off" if you're going to use this tactic today to delete charge offs from your credit reports. And also remember, if you have any collections, charge offs, or any negative items that you need to delete from your credit reports, make sure to watch this video right here because it's going to show you how AI will do all the work for you. Mail the letters, and it comes with a 110% money back guarantee. And if you felt that I brought you some value in this video, make sure that you don't forget and subscribe to increase your credit score.