ARKANSAS RESTORATIVE INITIATIVE • Credit Reporting Reality Guide

Credit disputes are about accuracy.

If something is reported inaccurately, inconsistently, or incompletely, you can dispute it. A consumer does not have to pay a debt to dispute the way it is being reported, even if they owe it. Those are separate issues: liability vs credit reporting accuracy.

Visual examples included
Built for consumers + practitioners
Factual • FCRA-focused
Jump to Visual Keys Dispute Steps Sample Dispute Language

The 3 truths most people are never told

1) You can dispute without paying
There is no federal requirement that a consumer must pay a debt before disputing inaccurate reporting. Disputes are about whether information is reported accurately and completely under the FCRA.
2) Reporting to credit bureaus is not mandatory
Credit reporting is generally voluntary. A creditor or collection agency is not legally required to furnish data to bureaus. Many choose to report because negative reporting can increase payment pressure, but the legal obligation is accuracy if they do report.
3) Free reports often hide the “date fields” where violations live
Consumer reports can omit or simplify critical dates (like true delinquency timelines). That’s why two tradelines can look “normal” until you compare fields across bureaus or across furnishers.

Legal anchor (plain-English)

Under the Fair Credit Reporting Act (FCRA), consumer reporting agencies must follow “maximum possible accuracy,” and furnishers must provide accurate, complete information and correct what can’t be verified. This guide focuses on identifying factual inconsistencies that trigger reinvestigation obligations.

Visual Key: What counts as a “dispute worthy” inconsistency?

Not every negative item is removable. But inconsistencies and impossibilities are factual problems, and factual problems are disputable.

Chronological impossibility
Example: last payment date earlier than the account’s open date.
Conflicting status across furnishers
Example: original creditor says “closed,” collector says “open,” same debt.
Date conflicts that suggest re-aging
Example: original creditor last active year is 2019, collector shows “last active” in 2025 with no consumer action.
Misclassified “payment status” on collections
Example: a collection reporting as “120 days late” like an installment account.

The point is not “magic deletion.” The point is: if reporting is inaccurate or can't be verified, it must be corrected or removed through the reinvestigation process.

Here are two example patterns

Below are simplified reconstructions of the exact inconsistency patterns from an actual credit report (no personal identifiers given). Use these as a checklist when reviewing your own file.

Example A: “Impossible dates” on a collection account

Field What it shows Why it matters
Red Flag Date Opened 09/01/2022 If the “last payment” or “last active” date is earlier than the account exists, that is a factual impossibility. Factual impossibilities are disputable because they indicate inaccurate reporting.
Red Flag Last Payment / Last Active 02/01/2022
Mismatch Payment Status “Late 120 Days” (while labeled Collection) Collections typically should not be aged the same way as revolving/installment accounts. Misclassification can be materially misleading and disputable.
Mismatch Account Status Open “Open” collections with $0 payment and old activity can raise verification questions. If the furnisher can’t verify, correction/removal may be required.
How to dispute this (factual framing):

“The account shows a Date Opened of 09/01/2022 but reports a Last Payment/Last Active date of 02/01/2022, which is impossible. Please reinvestigate and correct or delete any information that cannot be verified as accurate.”

Visual: Timeline check

Timeline accuracy check Dates must move forward. If they don’t, dispute the inconsistency. 02/2022 Last Payment 09/2022 Date Opened Impossible sequence → dispute

This is the cleanest “visual learner” check: dates must move forward in time.

Example B: Conflicting tradelines (Original Creditor vs Collection Agency)

When the original creditor and the collector report inconsistent statuses or activity dates on the same debt, that creates a factual dispute basis.

Furnisher Status Last Active Date Why this triggers a dispute
Original Creditor Closed 04/01/2019 If the collector reports a “last active” date years later without a consumer payment or new agreement, it can indicate inconsistent reporting or re-aging. Inconsistencies must be reinvestigated and verified.
Collection Agency Open 05/10/2025
Factual dispute angle (keep it tight):

“The original creditor tradeline reflects last activity in 2019 and a closed status, while the collection tradeline reflects activity in 2025 and an open status. These fields conflict on the same obligation. Please reinvestigate, verify accuracy, and correct or delete any information that can't be verified.”

Visual: “Double reporting” consistency check

Two tradelines can exist — but they must match reality. If the same debt shows conflicting status/dates, dispute the inconsistency. Original Creditor Status: Closed • Last Active: 2019 Collection Agency Status: Open • Last Active: 2025 Conflict

How to dispute (step-by-step)

Step 1: Dispute with the credit bureau (in writing)

  • Identify the tradeline exactly.
  • State the exact fields that conflict.
  • Request reinvestigation.
  • Keep copies.

Step 2: Dispute with the furnisher

Payment is not required to dispute inaccurate reporting.

What to attach

  • Credit report pages
  • Statements (if relevant)
  • Any correspondence
ARKANSAS RESTORATIVE INITIATIVE • Education and tools.

Analyze a Negative Account & Draft a Dispute Letter

This tool helps you document what you see on a negative tradeline and generate a fact-based dispute letter. You do not have to pay a debt to dispute inaccurate or unverifiable reporting. Disputes focus on accuracy and consistency.