Credit: Consumer Explanation Letter

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.

1. Consumer Explanation Letter or Letter of Explanation header

2. File and borrower information

Key takeaways: Important information.

1. Derogatory accounts, public records, address history, inquiries, variations, and additional remarks

2. 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.