The 623 Dispute Method: Disputing with the Original Creditor

7 min read

Fixing mistakes on your credit report usually starts with a dispute through the credit bureaus. But what happens if they don’t remove the error? That’s where the 623 dispute method comes in.

This process gives you a second chance by going directly to the original creditor instead of relying only on the bureaus. It can be especially useful if older accounts are being reported inaccurately or if the creditor no longer has full records.

woman disputing credit report

Handled correctly, a 623 dispute can push creditors to investigate their own files and remove information that can’t be verified. It’s not a shortcut, but it can be a powerful tool if the first dispute doesn’t work.

What Is the 623 Dispute Method?

The 623 dispute method is a way to challenge inaccurate information on your credit report directly with the original creditor. It’s named after Section 623 of the Fair Credit Reporting Act (FCRA), which requires creditors to review disputes once you’ve already filed through the credit bureaus.

Unlike a traditional dispute with Equifax, Experian, or TransUnion, a 623 dispute isn’t about asking the credit bureau to verify information. Instead, it forces the creditor to investigate their own records. If they can’t prove the debt is accurate, they must notify the credit bureaus to remove or correct the negative item.

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How the 623 Dispute Process Works

Before you can file a 623 dispute, you must first submit a standard dispute with the credit bureaus. Only after that process is complete can you move on to the creditor. The typical steps look like this:

  • File a credit bureau dispute: Start by disputing the error directly with the bureau reporting it.
  • Wait for the bureau’s response: They usually have 30 days to investigate and reply.
  • Send a 623 dispute letter to the creditor: If the negative item remains, send a written request to the original creditor asking them to investigate their records.
  • Creditor investigation: The creditor must review the information and respond within 30 days.
  • Next steps if unresolved: If the creditor can’t verify the debt, the negative entry must be removed. If they refuse to comply, you may need to escalate with regulators or pursue legal action.

This method can be especially effective for older debts where creditors may no longer have complete records, but it only works if you follow the steps in the right order.

What to Include in a 623 Dispute Letter

A 623 dispute letter must be clear, specific, and supported by details. Creditors are allowed to reject vague or incomplete requests, so you want to give them enough information to take the dispute seriously. At a minimum, your letter should include:

  • Personal information: Your full name, address, and phone number.
  • Account details: The account number exactly as it appears on your credit report.
  • Explanation of the error: A short, direct statement about why the information is wrong.
  • Supporting evidence: Copies of bank statements, payment confirmations, or any records that back up your claim.
  • Request for action: A direct request for the creditor to investigate and notify the credit bureaus if they cannot verify the information.

Keep your letter short and to the point. The goal is to trigger an investigation, not overwhelm them with unnecessary details.

When a 623 Dispute Can Work

The 623 dispute method is most effective when the creditor no longer has complete or accurate records. This often happens with older accounts that have been closed for some time. Situations where this method may succeed include:

  • Older charge-offs: Accounts that were written off years ago but are still listed incorrectly on your credit report.
  • Late payments with missing records: If a creditor no longer has documentation of the delinquency.
  • Transferred or sold accounts: Debts that changed hands, where the original creditor cannot verify the details.

In these cases, creditors may be unable to provide proof, which forces them to contact the credit bureaus and request removal of the negative item.

When a 623 Dispute Won’t Work

Not every account can be challenged successfully through this method. Creditors with strong recordkeeping systems or accounts that are still recent are unlikely to be removed. Common situations where a 623 dispute may fail include:

  • Recent delinquencies: Lenders usually keep detailed records of payments within the last couple of years.
  • Active accounts: Creditors with ongoing relationships often have easy access to accurate information.
  • Vague requests: If you don’t clearly explain the error or provide supporting evidence, the creditor can deny the investigation.

A 623 dispute is a powerful option, but it works best when the account history is older and documentation is harder for the creditor to find.

If the creditor fails to investigate your request or refuses to remove information they cannot verify, you may need to take the next step. The Fair Credit Reporting Act gives you the right to escalate the situation, but only if you first filed a dispute with the credit bureau.

Your options include:

  • Filing a complaint: You can submit a complaint with the Consumer Financial Protection Bureau (CFPB) or your state attorney general’s office.
  • Taking legal action: If the creditor violated your rights under the Fair Credit Reporting Act, you may be able to sue for damages in federal court.
  • Seeking regulatory help: In some cases, state or federal regulators may pressure the creditor to resolve the dispute, though there’s no guarantee they will act.

Legal action should be considered carefully, but it exists as a final safeguard when creditors ignore their obligations.

Should You Hire a Credit Repair Company?

If you’ve gone through the 623 dispute process and still feel stuck, working with a credit repair company may be worth considering. These companies know how to handle complex disputes and can save you time by managing the paperwork and deadlines.

The right credit repair company can:

  • Review your credit reports: Spot errors you might have missed.
  • Prepare dispute letters: Draft targeted letters for both credit bureaus and creditors.
  • Track responses: Stay on top of deadlines and follow up if creditors don’t comply.

Whether you have one negative item or several, professional help can give you a stronger case. Some companies even back their work with a money-back guarantee if they cannot achieve results.

See also: Best Credit Repair Companies (Updated Reviews for 2025)

Final Thoughts

The 623 dispute method can be a powerful tool when errors remain on your credit report after a credit bureau dispute. By going directly to the original creditor, you create another opportunity to clear inaccurate information and strengthen your credit history.

This process works best when records are incomplete or outdated, but it requires careful steps and proper documentation. If handled correctly, it can lead to the removal of damaging entries that should never have been reported in the first place.

If you feel overwhelmed or unsure, consider getting help from a credit repair company or legal professional. With the right approach, you can improve your credit profile and open the door to better financial opportunities.

Frequently Asked Questions

Does a 623 dispute hurt your credit score?

No, filing a 623 dispute does not lower your credit score. The dispute process is about accuracy, not new activity, so your credit score will only change if an item is removed or corrected.

How long does a 623 dispute take from start to finish?

Most creditors must respond within 30 days of receiving your letter, but the full process can take up to two months when you include the initial credit bureau dispute and follow-up time.

Can I send a 623 dispute letter by email?

Creditors usually require mailed letters so they have an official paper trail. Certified mail is the safest way to ensure your request is received and logged properly.

What happens if the creditor says my request is frivolous?

If the creditor decides your dispute lacks enough detail, they can label it as frivolous and decline to investigate. They must notify you in writing within five days, so you’ll know if this happens and can resubmit with more details.

Do I need to hire a lawyer for a 623 dispute?

Most people can handle a 623 dispute on their own. However, if a creditor refuses to follow the Fair Credit Reporting Act or you’re considering legal action, consulting a lawyer may give you stronger leverage.

Lauren Ward
Meet the author

Lauren is a personal finance writer with over a decade of experience helping readers make informed money decisions. She holds a Bachelor's degree in Japanese from Georgetown University.