Credit Report Items in Dispute May Not be in Dispute After All!

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Completing the cycle of credit challenged client to closed borrower involves much more than writing dispute letters. Today I want to discuss removing dispute language from your credit report after the investigation has been completed.

First, I would like to clarify that there is no way to circumvent having dispute language populate on items that are being challenged on a credit report. Once an item has been challenged, the credit reporting agencies place a code of XB to that item. The appropriate language of  “In Dispute” or “Customer Disputes this information” is then illustrated on the report.

The reason DU and LP rejects files that have items in dispute is because the XB code removes any score impact the disputed items may have on the overall score, potentially raising the consumer’s credit score temporarily.

This is common knowledge in Mortgage Lending but what is less known is how to determine if the dispute has been resolved. Here is where you have to read the fine print. Often, investigations that have been completed have language similar to those that are still active. The keys to determining if a dispute is still active are as follows

  • When was the dispute initiated? (Data Furnishers have 30 days to respond to each inquiry)
  • Does the language reflect a current or closed dispute?

If the dispute is resolved,  the reporting code is changed from XB to XC or XH. The language you may then see may be similar to this: “Consumer Disputed This Information” or “Account in Dispute; Closed”. This ambiguous language signifies that the dispute has been resolved but the outcome was not favorable for the consumer. So as you review updated reports, look more closely and try running your findings again. You may be pleasantly surprised!

More on this topic to come!!

Chad Kusner/President Credit Repair Resources LLC

Have more questions? Email me at:

By | 2017-05-11T20:28:05+00:00 January 28th, 2014|Credit Report|0 Comments

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