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Overdue payment reminder letter for Public Relations

having lay payments on your credit drops your score like a rock this affects you getting approved for credit cards cars and homes so today I'm revealing all of The Insider secrets to take care of those lay payments from your credit repard let's turn that payment history from Red crosses to Green check marks in fact I have applied these methods successfully with hundreds of clients that you can see here so before I actually go over the step-by-step process let's take a closer look at lay payments and why they matter so much in the realm of credit a lay pay payment in the simplest terms is a payment on a credit obligation that you fail to pay by the due date but how late a payment has to be to affect your credit can vary now the key factors are how recent was the late payment how severe and how many late payments you have on your report the general rule is that a payment becomes officially late and reportable once its 30 days pass to Due Date however this can vary depending on the lender's policies some may not report it until it's 60 days late While others may give you a grace period but remember once it's reported it sticks to your credit report for 7 years which feels like a lifetime especially when you actually need your credit now why does this matter your credit score and number that rates your credit worthiness is highly influenced by your payment history in fact payment history makes up 35% of your FICO score and the FICO score is the most commonly used credit scoring model used by lenders so to put that into perspective if FICO credit scores range from 300 all the way up to 850 this means that there are 550 points in between them 35% of 550 which would be roughly around 190 points that's why when you have a lay payment this can drop your score by more than 100 points there are four common types of lay payments 30 days 60 days 90 days and 120 days late payments sometimes you may see it go all the way up to 180 days late but usually at that point the lender probably charges off or they sent it to collections so to be up front with you the more late payments that you have the more difficult it would be to get them removed for instance if you have one or two late payments here and there then you have better odds rather than having a multiple string of lay payments because this will get seen as a pattern and there's going to be way more receipts to back this up but the good thing about lay payments is that over time they will tend to affect your credit much less the newer the delinquency the more effect it would have on your credit score so let me show you a chart that's coming directly from FICO as you can see even in the first year you will be labeled as very high risk now that level of risk almost Cuts in half in year two then it slowly trickles down your risk profile after 4 years now once the late payment is over 6 years it will still have an effect on your credit score but it is still possible to get a 800 plus score even if you have a lay payment on your report but it will not allow your credit score to be as high as it could be now anytime that there is a lay payment showing on your credit report it can still be a factor when lenders are reviewing your profile and deciding whether or not they would want to l lend you money so based off the chart it will be in your best interest to tackle late payments that are more recent since they would have a higher impact on your credit score so that older AR are if you were to remove them yes they could improve your credit but not as much if it was something new so what are some common reasons for Lay payments well the most common one is just simply forgetting I get it life gets busy and it's easy to miss a payment for others is financial hardship that can lead to lay payments maybe you lost your job or had unexpected medical expense sometimes it's just a matter or not of having enough funds in your account to cover an automatic payment or maybe you moved and the billing statement didn't reach you on time understanding these reasons is crucial because it shapes the approach that we take to address and resolve lay payments but don't worry whether your late payment is due to an oversight or financial challenge there are steps that you can take to remove it from your credit report so first and foremost you will need to get a copy of your credit report in my personal opinion it is best to get a credit report where you can see all three credit bus side by side rather than going directly through each Bureau so these type of credit reports are available from a variety of companies such as score Master identity IQ or my FICO but usually anything that's simpler and easier in life usually comes at a cost since with any of these companies that you decide to go with you have to pay anywhere between $ 20 to $40 a month now you can definitely do it the free route by getting a credit report from annualcreditreport.com but it just takes a little bit of time on your end to try to figure out where is everything at so let me show you a real example of a credit Port from a client that was pulled from Smart credit so this is the the main reason why I like credit reports from like score Master identity IQ just because you get to see all the credit bureaus side by side and you can compare them line by line now this is how actually credit repair agencies and if you want to do your own credit repair this is how you should actually look at your credit ports so you could identify any errors so essentially you would want to see everything line by line to see how they are so let me zoom in a little bit so the account information here is blurred for the client's privacy as you can see right here the high balance this is 487 this is correct on Experian but on eifax is only 3 00 so there's an error right there last date of activity last verified some of these are different usually depending on how the credit Barre reports the information if it's within the same month that's usually fine but if it's like different months and different years then there's definitely an error going on so the DAT reported this one was in December this one's in March this one is in December so there's probably something going on here with Experian now the date open this one is the 15th this one is in January January so that should be fine okay this shows when the account was actually closed other credit barrs do not show that the account rating paid account description individual which is correct dispute status none of these are being disputed the Creditor type so this shows that this is a credit card and this one shows that it is a mortgage finance company which is definitely an error cuz it's labeled incorrectly this one's labeled as a credit card which is fine so there's something going on with Experian so anytime that there is inaccurate information in between any one of them and they don't all align accurately you have the right to dispute them now the account status close payment status is shows that is current other remarks when it was closed things like that payment amount last payment that looks fine uh pass due amount zero account type credit card credit card see even though this one says that is a mortgage company but it says it's a finance card here there's something going out with experience so that's something that I would definitely dispute this one shows the credit limit as 300 this one shows as zero see sometimes Equifax has stuff labeled all incorrectly high balance it shows that is zero this one show high balance as you were shows that it was 300 but it shows the credit limit of zero so this kind of show that this client was overusing their credit limit it's possible to delay payments and the interest charges now where you want to focus most of your time is usually in the 2-year payment history part okay this is usually where you can see like the green check marks or red crosses things like that but this one's looks a little bit different because you have to align the dates as you can see here this is 2023 it starts right here this one starts right here okay and Transunion it starts right here so they don't all look the same so that's kind of where you have to like be in detective mode to see what's going on all right so this one is March of 2022 it was 30 60 9010 day late so this was for eifax let's check out Experian here Experian 2022 here see for 2022 in March this one says is okay so there's some in congruent information here okay so it says okay okay okay okay but the 30-day late doesn't even show up until September by that time on Equifax it doesn't even report any more information so there is some inaccurate reporting of lay payments on Experian and possibly eifax so if you were to take this one's TransUnion on Top This is 2022 it doesn't report the lay payment until May 30 like until May of 2022 see March May then it goes all the way up to 120 in August see there is in congruent information going on there this one doesn't report late payments until like the end of the year the thing about these type of accounts you can even see like a summary here at least it reports that there are late payments that are going on here like there's 30 60 and 90 this is all correct here but the time and the date is incorrect so that's usually how you can spot these errors and you can actually dispute them with the credit bureaus and that's how you can actually win your case in your best interest to actually get a copy of report like this and print out the sheet you know and start start marking it up and then like Circle this circle that Circle this or whatever it is then whenever you dispute to each credit Barrel you can actually attach this file to show that you have proof like hey there's something going on here you said that there's a report right here but experience says this but TransUnion says that and um that's usually how the disputing process actually works okay so once you have analyzed your credit report and know which late payments to tackle the first way that you should actually tackle these lay payments is by doing it via dispute letters honestly I think that this is the best route to take since this is where I have seen the high succcess rate when it comes to deal with late payments this is also what the majority of credit repair agencies still do to this day so I'm going to give you their exact strategy now there is something that you have to be aware of when you're disputing late payments with letters is that it can take anywhere between 1 to five rounds of letters to actually see some progress so down in the description below will be a sample dispute letter that you can use and you can just modify to your own personal situation so whenever you are customizing this letter it is best to keep it simp simple and factual and straight to the point now in this letter do not try to beg or explain your situation because this letter is going to be sent directly to the credit bureaus themselves and they really don't care all they really care about is if the information is reported correctly so before you send off this letter there are a few things that I would recommend doing first is by placing a security freeze with some of the most common public record credit barrels such as Lexus Nexus sream and innovis the first two companies Lexus Nexus and sream can be Frozen all at one place it's pretty straightforward and I'll link it down in the description so you can do so once you receive an email or a mail confirmation that your accounts Haven been frozen which can take anywhere between 72 hours all the way up to 30 days then you can move on to the next step if you don't hear anything within 3 weeks then I would just start off by sending the letter anyways because it can take some time for the letters to reach the credit barrels now once you have those security freezes in place it is time to prepare your letter so let's hop on the computer so I can walk you through it so whenever you click on the link just make sure that you make a copy of this letter so you're able to customize it okay so it's pretty self-explanatory so just adjust the date to today's date or whenever you are planning to send out the letter next is to plug in your personal details like your name your address social security number I would recommend at least putting your last four sometimes it is better to have your full social just due to the fact that it could be a stall tactic from the credit barel to be like hey we need to verify who you are can you send us a copy of your Social so that kind of like makes the process a little bit longer so I recommend to have a at least your last four there and if you're comfortable then put your full social next your date of birth now we would want to put the credit bureau's address right here this is also where we're going to be sending this letter I will also list all the credit barrels addresses in the description that you can just copy and paste into this letter okay this template is pretty straightforward this is basically goes over that hey I noticed that there are some errors this is the account name the account number whatever it is so this could be like Chase JP Morgan whatever it is account number XYZ 416 whatever it is and the reason is like there are incorrect delay payments displaying on my credit report from March 2022 all the way up to June of 2022 now for the first letter you can just keep this as is or you can just customize it to your own situation in regardless they just when the credit barrels receive these letters it goes through a automated system right and it scans through the whole letter so it can know what's going on and what you're complaining about from there then they will do an investigation all right this will also tell them to hey uh send me updated copy to the address above then from there you should hear something back within the next 30 to 40 days ing to the FC they have 30 days to investigate your dispute if not then they would have to update it as unverifiable okay so down here you would just type in your full name all right I would not recommend signing it just type in your full name and that's perfectly fine you can also write this letter if you would like Anyway if you download this letter you can just dis change it and just send it off so now before you send off this letter just make sure that you include a photo ID utility bill and sometimes I would even consider even sending a social security card just so you don't get that stall letter saying that hey we need to verify it like I mentioned earlier so the reason behind this is that the credit barrels they want to make sure that they have the right person and saying who you are when you are disputing items with them also that credit report that you marked up earlier you can actually attach that to the file or just print it out and make a copy and send it in the letter so you have further proof to resolve your dispute so once you have your documents in order now you will just send it to the credit bus where there is a discrepancy so what I mean by this is that if there's late payments on just one credit bureau then just send it to that one for instance if you only have lay payments reporting on Experian then just dispute with Experian if there are lay payments on all three of them then you would have to make a separate letter and send to each three of the credit barrels now when it comes time to actually sending this letter you can either send it by certified mail or first class stamp either way it should not really matter the credit barrels get thousands and thousands of letters per day so I feel pretty safe and confident just sending it by first class stamp and you should still get the same result now this is just the first step of the disputing process because this process can go through multiple rounds and there's usually a lot of back and forth but this will get the ball rolling for them to remove the lay payment if it is indeed incorrect so just keep in mind that this usually can take up to five rounds of letters of just going back and forth and you really got to be persistent whenever you are disputing so now let's talk about the additional rounds that you may encounter if the late payments Still Remains on your credit board so the first common reason is that you may not even get a response back from the credit barrels so let's modify this simple disputing letter that you were able to download earlier and we can just say like hey respond to us okay so reappear you can just say that failure to respond this you could leave as is the account information you can leave as is as well so this is where you would want to make adjustments to the meat of the letter so here's a prompt that you can actually put in so freeze this video if you want to copy and paste this or just adjust your letter to this but basically says that this is a formal complaint that you ignore my previous requests and fail to maintain reasonable procedures in your operations please refer to my previous letter that needs to be reinvestigated this information must be deleted as soon as possible the information is inaccurate and reducing my ability to buy a home car Etc or whatever you're trying to do with your credit okay thank you for your time in this matter sincerely your name Des send this letter after you have not get a response from the credit bus within 40 days so with the credit repairing process it is best to mark your calendar if you have a iPhone or Android make sure you set a reminder 40 days from the time that just sent out that letter so you can actually keep track of the time frames of when the credit barrels will get back to you cuz a lot of times I see a lot of people failing because they don't follow up the credit bureau they're trying to just wait it out and hopefully you just forget about it and it just makes it a little more difficult for you so they won't have to actually work on your issue all right now let's move on if you actually got a response back from the credit bus so this is how I would actually respond back to them using our same basic disputing letter So based on the information on top the same credit Barrel the same you could put disagreement with investigation so you can leave this information as is then this is where you kind of ask for more information that you disagree with the investigation response the incorrect lay payment below still appears on your report and even after investigation I like these items to be reinvestigated right away for a good reason these mistakes have a significant impact to my credit score so actually let's copy this and change this right here this make it sound a little bit more clean because it says that the account information here please provide more of the information during the investigation because a lot of times whenever you hear response back from the credit bureaus usually they will just send you like hey this information was verified updated or it was deleted okay if it was deleted perfect no need to follow up usually it just says verify they never say how they verify they never told you like this is how we investigated this is who we contacted on this date XYZ whatever it is of how we came to this conclusion you usually just get a big print out of your credit report saying that this information was updated and verified it really never goes into details like that but but ing to FC their poster actually provides you with all the details of the investigation so essentially you were just asking about this the names the addresses of who you contacted how did you actually verify this information so essentially you're just kind of like poking them just a little bit more so they could actually do this a lot of times they really don't want to actually provide the information of how they verified it sucks because they actually control all of this information but when you ask them like Hey how do you actually prove that this is correct a lot of times they don't want to share this information and it takes longer to actually gather all this information to actually share it with you so in this case this would hopefully get the lay payment removed from your report now let's just say that they do come back and they provide you with the information or they just showed you the same response after like the first letter saying hey this information is verified let's see how can we handle the disputing process during round three all right so now let's go with round three again the top is the same basically you're just a little bit more aggressive with your disputes saying that you a request to reinvestigate the information and you attach the prior correspond respondence so it's good thing that you do all this electronically just so you can actually like have all this data and all this paperwork to actually back up what's going on so essentially you're just keeping the paper trail this is the account in question again you would have to share to your account now remember just pause this video copy the exact information when you are doing your disputes you're basically saying that hey I'm losing my patience like what's going on here because a lot of times they just do send you like computer generated responses I'll be forced to seek legal advice and submit complaints to the cfbb which hint hint is like the next step and FTC and and uh my State Attorney General essentially you just kind of like almost in a way like random like hey if you don't actually do a real investigation I'll be forced to seek legal action or just take this one step further also make sure that you correct this information and send me an updated report of my credit and again for the same information attach all the personal details and just send it off to the credit bureaus so one thing that I forgot to mention was that usually after the first round of letter where you send in your driver's license and utility bills usually like round two and three you typically don't have to send that just due to the fact that that they already know who they're dealing with but for me I like to just put all the information there just to know that there's no other reason of them slowing down the process because there has been times where you go through like round two and three and they're asking to verify your information so I just like to plug in all of my personal details all the documents into the letter just so they make sure that they actually have it so as you can see these are just some examples that you can actually take and just spin them and customize them towards your own specific situation so again just remember that this can actually go up to 5 rounds now anytime that you don't get a response back within 40 days I would go ahead and send a non-response letter essentially what I showed you like a few rounds ago saying like hey why didn't you respond and just to nudge them a little bit so they can keep the process going now if you don't want to monitor or figure out what to say next I do have a DIY credit repair software that does make the credit repair process extremely simple now this software can help you repair your credit for a fraction of cost of what you would have to pay a credit repair agency it also allows you to easily dispute as many accounts as you want across all three three credit bureaus so if you have other things besides lay payments so this includes heart inquiries collections charge off and pretty much any other delinquency that you have in your account the software can actually help you out with that so with the software you can actually create your own dispute letters in a matter of a few seconds specific towards your situation and you can just print them out and send them out whenever you're ready so the reason why I like this is that it keeps it simple so rather than you following up with the credit bureaus the software will time and suggest a new strategy for addition disputes if it wasn't removed plus you get additional resources on different strategies and a private Facebook group to ask questions which I'll be there to help you out so if you're interested in making credit pair a little bit simpler I do have a link down in the description now let's just say that after five rounds whether you done it yourself just with the letters manually or you use credit rehab Pro and you're not seeing any success from your disputes I would go ahead and try this next strategy which is filing a complaint with the cfpb so this is a government agency that keeps all of the financial institutions in check which also includes Crea bureaus so let me hop on my computer and show you exactly how to do this now just go to this website consumerfinance.gov this is the cfpb's website right here and to submit a complaint it's pretty simple just go to the very top click submit a complaint then from there you would have to scroll to the very bottom it tells you like hey things to do before you submit a complaint all you have to do is just click this big button right here start a new complaint so from here you would actually have to making an account just so they can actually follow up with you now since I already have an account I can just log in if you have not so just plug in your personal details here like your first name last name make a password and all that stuff since I already have an account let me just log in so once you're logged in and ready to submit a complaint this is what you would actually want to do you would have to go to credit reports or personal Consumer Reports click on that since it's about your credit report you want to click on credit reporting scroll to the very bottom and click next then on step two you would click on incorrect information on your report which is this one right here so which best describes your problem this would be account status incorrect like it's showing up an open account when it's closed or a delinquent account when it's not so just click on that have you already tried to fix this problem yes you have because you disputed with the credit bureaus did you request any information yes you did you want to ask for proof of how they verify the information just click yes right here I usually just leave it blank whether did the company provide this information no they did not because they didn't show you the verification information click next so this is where you would have to describe of what happened and what you want to do so I actually already made a little copy and paste thing that you actually copy and paste so let me just put it in here so right here you would just plug in I was reviewing my credit report and found some errors relating to my payment history on some accounts the credit reporting agencies have the responsibility to report accurate information have never been laid on account name this could be chase the credit card whatever it is the account number please investigate these errors and remove the late payments if these cannot be verified so you can actually use this verbatim whenever you are filing with the Creditor bureaus so pause the screen copy paste this try that now what will be a fair resolution to this issue essentially to update this information or remove them okay so essentially you would want to update and verify that these delay payments are incorrect and to be removed from my credit report so attach documents this is where you can actually attach the credit report that we marked up earlier or you can actually send any of the letters or The Correspondents that you dispute with the credit bus so once you're done that just press next then from there you would just click on who did you complain with so this could be all three credit barrels or just with one let's just say TransUnion is one of them so TransUnion LLC now this is where you would have to plug in your information I recommend plugging all of them as much as you can your social security number date of birth and your name if you complain to any other company like Experian or eoa you can say yes as well so essentially you're doing pretty much the same thing as you did up here so for this example let me just say no click next then from there it will say like who are you submitting this complaint for you would say yourself then after that it would just verify all your personal details like your email address as for any other demographics you could either answer them or not then at the very bottom you can just press submit now if you're still having problems trying to remove these lay payments from your account and you've got no luck through disputing with the credit bureaus or even after filing a complaint with the cfpb now it is time to ask for forgiveness the next approach for tacking lay payments on your credit report involves a Goodwill negotiation you can do this either by calling the lender sending an email or through a traditional letter often the fastest solution comes from a direct phone call but just remember that when you're oping for a phone call this means that you are admitting that these late payments were your responsibility it's kind of like a point of no return because if you later choose to dispute these late payments this conversation might be used against you as evidence so only consider Goodwill requests only as a f option so imagine that you're dealing with your local credit unit you would then want to call them up and have a chat with someone in customer service this will be your chance to explain your reasons for the lay payments highlighting your loyalty as a long-term customer and asking if there's any chance that they can wave the late payment record I would only recommend doing this once you have at least 6 months of ontime payments and signed up for automatic payments this shows that you're back on track now when you're on that call kindness and patience goes a long way try to make a personal connection with with the rep share how the lay payment is affecting your life events like buying a house or getting a new car it's about creating a win-win situation they get Assurance of future timely payments and you don't stress about missing deadlines but remember though automatic payments only work if your accounts have the funds to cover them so let's say that your account that you have with that credit union is usually running low or it doesn't really see regular deposits they might view you as higher risk the key thing to remember is that autopad payments is only good if you have the money in your bank account to cover the transaction but just to set expectations right even if you set up automatic payments there's no guarantee that they will remove the Light payment so this is more of like a Goodwill gesture that you're asking for so going through this conversation the rep may have to bring this to their higher reps or it may take the right rep to actually help you out but it is best to stay persistent because at this point there's really nothing to lose because the late payment is already on your credit report you tried multiple rounds you filed a complaint and it's still on there so the best thing they can do is say yes or just say no now there has been videos that have been surfacing that says that lay payments are illegal this is just a myth there is no legal standing that stops lenders from reporting late payments they are completely within their right to do so so it's whether their choice to actually report them or not now if you don't succeed on your first attempt with the customer service rep don't lose help because you could just try again with a different service rep because everyone is different and you might find someone who is more willing to help you on your next call now let's move on to the next tactic which is somewhat similar to a Goodwill negotiation which involves reaching out not to a customer service rep but directly to the company CEO through email I know that you might be wondering really can emailing a CEO make a difference surprisingly it has worked for quite a few people however it is important to remember that it is unlikely that the CEO themselves will actually read your email usually is an assistant or secretary that filters their emails first this method is somewhat similar to disputing via phone in your email you would just detail your circumstances mentioning any Financial challenges that you face and how hard that you've worked to stay on top of your payment since then your ass would be a Goodwill gesture to remove the lay payment as it's currently a barrier to securing new financing so to actually find CEO emails there's a handy resource called CEO email.com it's pretty straightforward just like that while not every email listed there might be correct it is definitely worth a shot so here's how the website would actually work now all you have to do go to CEO email it will look something like this okay don't get afraid if it just says for UK companies it actually has us companies as well down here it has like a bunch of list of companies now let's just search for a company so for instance let's just say that you have lay payments with Navy Federal you click search then from there scroll down a little bit and it'll tell you like hey this is the company here us this is all the information here so let's click on Navy Federal coo email and address so this is CEO's email Mary McDuffy navyfed.org this is also the phone number as well as well seems this 800 number seems like is a generic number but you can definitely try out this email and you just plug in whatever we spoke about earlier about forgiveness saying that hey we're going back on track and hopefully you can get the lay payment removed from sending out this email again you just have to think about this way what do you have to lose lay payment is already a negative on your record so reaching out could only potentially help your situation now let's go over the next method which is involves drafting a Goodwill letter sending directly to the lender so this letter is going to be very similar to the previous two since you're just asking for forgiveness so actually during the pandemic a lot of financial institutions showed the willingness to offer Goodwill adjustments especially for those with a solid payment history a strong relationship with the institution and a compelling heartfelt story however the success with this approach can very depending on the lender some like may be less helpful but in the last couple of years there has been a noticeable shift with many lenders being more open to removing lay payments particularly to those that are related to covid-19 reasons now now it is important to note that Goodwill letters are the most effective if you only had one or two late payments if your history shows a pattern of late payments getting them removed will be much tougher unless you have a really convincing story you should also have shown that you've been back on track for at least the past 6 months now it really wouldn't make sense to request for forgiveness if you're still behind I do have a Goodwill letter template that you could find in the video description simply you just fill it out send in your details and send it off or you could just write one your own and just explain it in your own words and just send it to the lender so the essence with a Goodwill adjustment whether over the phone via email or through a letter is just a strike and emotional cord you really need to show your loyalty to the company explaining the reasons for your lay payments and try to get empathy from the person on the other side so when mailing this letter unlike disputing with the credit bus you don't need to include your driver's license or proof of address just include the account number for easy identification so to find a mailing address for any lender all you got to do is just a quick Google search and that usually does a trick for instance inance searching for Chase mailing address usually leads to a page with irrelevant address this method usually works for most financial institutions and you should be able to find this online easily now let's address lay payments on accounts that are already closed firstly it is important to recognize that since the account is closed typical strategies like negotiating for automatic payments reaching out to the CEO or sending a Goodwill letter really won't be as effective there's no ongoing relationship with the lender which reduces their incentive to help so the best course of action is to dispute the Light payment through directly with the credit barrels after opening a dispute if the credit barrels confirm that the late payment is accurate your next step is to go through the late payment process that I mentioned earlier in this video ing to the Fair Credit Reporting Act credit barrels are obligated to investigate your dispute and respond within 30 days now sometimes the credit barrels do not respond to your letters right away sometimes you may get loss or sometimes they're just not responsive if this is the case then I would go through the cfpb strategy so when it comes to Clos accounts it is usually more effective to dispute lay payments that are older ideally over year because recent lay payments are going to be tougher to challenge the more recent the lay payments are the more difficult will be to get them removed so just to be honest with you guys removing lay payments from your credit report are usually challenging because given the accurate nature of these records but nonetheless it is worth attempting if you want to clean up your credit but remember the impact of lay payments does diminish over time for example a six-year-old lay payment won't prevent you from achieving a decent credit score in the mid 700s however the more recent ones can significantly impact your score in the short term before wrapping up I would like to mention that all the resources discussed will be linked in the video's description now if you have lay payments but you also have heart inquiries or collections that you want to remove check out these videos over here