The consumer explanation letter or credit letter of explanation (LOE) is a document that is completed and signed by the borrower to address any derogatory accounts, inquiries, history, and discrepancies that appear in their credit report.
Context: Identifying the document.
Consumer Explanation Letter or Letter of Explanation header
File and borrower information
Key takeaways: Important information.
Derogatory accounts, public records, address history, inquiries, variations, and additional remarks
Borrower signature and signature date
Notes on Consumer Explanation Letters:
All derogatory accounts, public records, addresses, and variations must be explained by the borrower.
The borrower must state on all addresses whether they currently own that property.
All inquiries in the last 90 days must be addressed by the borrower and the borrower must state whether a new credit was opened as a result from that inquiry.