Here is a sample nutcase letter. “What in the world is a nutcase letter, and what would I use it for?”, you ask? The purpose of the nutcase letter is to convince a creditor or collector to remove a derogatory listing from your credit report that is paid in full. Remember, collections and charge-offs still kill your credit score, even after they’re paid!
This letter was originally created by the member Psychdoc of the CreditNet forums. The aim of the nutcase letter is to pester the creditor/collector into submission. You will be demanding that they either validate a debt that has already been paid, or delete it from your credit reports. As you can imagine, once the creditor/collector has been paid, there is nothing in this for them except wasted time and money. So they will often find it much easier just to delete the debt from your credit reports and wash their hands of you, rather than to waste their resources digging up the required documentation (which they very well may not have anyway).
The letter also implies that you are a sue-happy nutcase who may be planning to take legal action against the creditor/collector if they don’t cooperate with you. Again, it would make much more sense for them to just delete the offending item rather than risk being dragged into court over a paid debt.
So without further ado, here it is:
Name of Old Fully-Paid Acquaintance Address
City, State, ZIP
To Whom It May Concern:
I am formally requesting that you validate all tradeline notations you have submitted to the three major credit reporting agencies by NAME OF COLLECTION AGENCY or NAME OF ORIGINAL CREDITOR for me, YOUR NAME, for account number XXXXXXXXX.
Due to possible inaccuracies in these CRA reports, I must demand that the validation I hereby lawfully request be in the form of a notarized statement by a person with original knowledge of the debt as it was constituted and who can testify that the debt was incurred legally, was not subsequently disputed as a result of returned, faulty, or recalled consumer products, was not utilized as a profit-loss tax deduction during the period it may have been payable, and was not claimed as a loss with any insuring entity during the period it may have been payable. Please be advised that I am not requesting a verification that you have my mailing address; rather, I am requesting validation, i.e., competent evidence that I had some contractual obligation sans consumer protection encumbrance which incurred the original claims associated with this tradeline.
I have enclosed two documents which will verify my address: a photocopy of a [YOUR STATE] Driver’s License and a photocopy of a recent [NAME OF UTILITY OR TELEPHONE COMPANY] statement.
Please know that you have 30 days from the tracked and confirmed delivery of this lawful notice to either answer these demands or to remove the associated negative tradeline notations from the CRA reports. Any other action may constitute evidence of your intent to abridge one or more civil or other constitutional rights. Please be further advised that continued unsubstantiated reporting of possible inaccuracies to third parties may provide a basis for criminal complaints being filed in accordance with FDCPA, FCRA, and other federal statutes.
I look forward to a timely and amicable resolution to this matter.
Your Name Address City, STATE ZIP