A Credit Clearance Letter Example

Congratulations! You’ve paid off the cause of the negative items on your credit report and can finally file for dispute at the bureaus. You’ve probably read about the ITC clearance process and know that to dispute inaccuracies with the bureaus you need to submit supporting evidence. But how do you properly write an explanation of your evidence? Cape Town Legal Consultants has put together a credit clearance letter example.

Disputing inaccurate information is your right. Section 72 in the National Credit Act, entitled “Right to access and challenge credit records and information” says that everyone has a right to challenge the accuracy of information concerning them. You can require the National Credit Regulator and bureaus to investigate your case free of charge. Failure to do this is an offence.

Now that you know that disputing inaccurate information is your right, it’s time to find out how you can write the perfect credit clearance. We’ll discuss what information and documents to use, tone and conventions you should account for, and review a sample letter together.

What Should Be in A Credit Clearance Letter?

These letters are also referred to as credit dispute letters. They tell credit reporting agencies that you believe certain information on your report is incorrect. When you dispute information, the credit bureau will contact the information provider to verify their information. If the lender finds that there is information that should be corrected, they’ll let the bureau concerned know and you’ll receive an updated credit report.

Note that you can’t dispute items on your credit report just because they’re negative, like collections or defaults. If the information provided by the lender is accurate, it won’t be removed.

Some items you could dispute include:

  • Incorrect addresses or contact numbers
  • A late payment reported by a credit company that you can show is incorrect with supporting documentation
  • A bankruptcy item when you haven’t filed for bankruptcy

You can dispute negative items on Experian and TransUnion’s websites. With smaller bureaus, like South Africa’s XDS, it may be necessary to send an email or physical letter.

What Information Should I Include?

Include identifying information the bureaus can use to verify that you are who you say you are like proof of address, your full name, identity number, your current address and any other addresses at which you have lived during the past two years, a copy of your passport or Smart ID, and a bank statement or utility bill.

You should also include the account information of each dispute (credit provider, account number, balance etc.) Try to be as specific and factual as possible.

Example Clearance Letter

Here is an example credit clearance letter email to Experian.

Subject line: Credit Item Dispute

Dear Experian,

My name is John Doe and I would like to dispute the following negative items on my credit report:

Firstly, my address is incorrect. I have moved from 777  Carrel Road in Blouberg, Cape Town to 111 Peralta Lane in the Northern Province. I have attached the corresponding proof of address and a utility bill.

Secondly, ABC Loans has reported that I made a late payment on my personal loan two months ago. I have included bank statements that supports otherwise.

I have included a copy of my identity document, credit report, and account information for verification.

Thank you for your help.

Kind regards,
John Doe

As you may have noticed, the letter is not overly complex or formal. It uses clear and concise language and is specific about the problem. John attaches a PDF copy of the front and back of his smart ID, a standard bank statement with his address information, and a utility bill.

A credit clearance letter example.

If you need help with credit clearance, contact Cape Town Legal Consultants. We are renowned experts in the credit clearance process and can help you get judgments, defaults, and debt review flags removed from your credit report.