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How To Dispute A Debt With A Collections Agency

You have the right to dispute a debt when a collector contacts you. Maybe the debt is not yours, maybe it is, but you dispute the account or maybe you are unsure. You have an absolute right to dispute the debt. If a debt collection agency tells you that you can’t or that your time is up to dispute the debt, that is untrue.

SmithMarco, P.C. is a nationwide consumer rights law firm with offices in Illinois and Florida. We are attorneys who are available to help you protect your rights while disputing debt collection activity by third-party debt collectors. Call us today for a free initial case consultation.

You Do Have The Right To Dispute The Debt – At Any Time

When a debt collector first contacts you, they typically send you a letter telling you who they are, what debt they are collecting and how much you owe. In that first letter you get from the debt collector, they must tell you:

That, unless you dispute the debt within 30 days of the receipt of that letter, they can assume it is valid. That does not mean you cannot dispute the debt at all if you miss the 30 days. You can always tell them it is disputed. Also, just because they assume it is valid, that doesn’t mean it is legally valid.
That, if you notify the debt collector in writing within the 30-day period that the debt or any portion thereof is disputed, the debt collector will obtain verification of the debt or a copy of a judgment you have, if there is one, and a copy of such verification or judgment will be mailed to you by the debt collector. You can, within the first 30 days, demand that the collector validate the debt for you. That is, prove that there is a debt that you owe. If you send in a timely dispute, the debt collection agency must stop collecting the debt until it has provided that validation. Failing to do so, the debt collector violates the Fair Debt Collection Practices Act (FDCPA). If you dispute the debt, then anytime the collector reports that debt to a credit reporting agency, they must report that the debt is a disputed debt.
That, upon the consumer’s written request within the 30-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor. Lawyers collecting debts are under the same obligation to provide you with validation. Remember, a debt collector presented with a timely (within 30 days of receiving your notice) demand for validation also must stop all collection activities until they provide the requested validation. Filing a lawsuit is a collection activity. That means they cannot sue you until they have validated the debt. You can dispute the debt over the phone when the collector calls you. The collector, at this time, does not have to validate the debt or provide you any documents, but at least they are on notice of the dispute and must notify any credit reporting agency they communicate with that the debt is disputed.

Our attorneys are happy to discuss your specific circumstances and educate you on all your rights as a debtor.

Step-By-Step Instructions For Disputing Collection Of A Debt

Having to interact with debt collectors can be stressful. Fortunately, you can follow a simple three-step process to dispute a debt that’s in collections.

1 – Gather Evidence Supporting Your Position

You will want to gather evidence about two things: the debt itself and the collections process. To document the debt, locate credit contracts, account records and proof of payment so you can dispute that the debt is yours and/or that the amount of the debt is correct. To document the collections process, keep a log of phone calls, letters and other creditor/collections correspondence. If you filed an identity theft report with the police or the Federal Trade Commission, include that too.

2 – Draft And Send A Dispute Letter To The Collector

When you are ready, dispute the debt in writing. If you wish, ask us for sample letters to use to communicate with the collectors. A dispute letter can be a powerful tool, but you will want to ensure you have:

Dated the letter accurately
Provided identification (name and address) for yourself and the debt in question (account numbers)
Provided details related to errors in the collections process (often about the nature of the debt or amount)
Specifically requested details that confirm the validity of the debt
Requested that all communication occur in writing

Additionally, referencing your rights under the FDCPA sends a signal to the collector that you understand your rights as a debtor and expect them to comply with the law. Send the dispute letter via certified mail to create a record of when the collection entity received it.

3 – Follow Up With Credit Agencies After Sending The Dispute Letter

This is a critical step to ensure the collector obeys the law and lists your debt as disputed.

Once you have sent your dispute letter and have confirmation of receipt by the collector, you’ll want to begin checking your credit reports to see if the debt is now listed as disputed. You can request free credit reports from Experian, Equifax and TransUnion at https://www.annualcreditreport.com/. All three credit bureaus allow you to file a dispute of your report online, as well as by phone or mail.

Credit reports are updated weekly, so you may need to monitor them for some time until the debt shows as disputed.

Answers To Common Consumer Debt Collection Questions

All debts are not equal in the way they are collected or disputed. Our attorneys have supplied answers to several common questions we hear at our offices.

Can I get rid of debt collectors without paying?

If a debt is valid and belongs to you, you are, in most cases, legally bound to pay it. Two exceptions to this rule are when the debt is so old that it is “time-barred” from being collected or when the collector has violated the FDCPA and forgiveness of the debt may be included in damages that a court awards you in a claim against your collector.

Can I dispute a child support or alimony debt?

You may, in certain circumstances. If you receive a “Notice of Debt” for unpaid child support, you may contest the amount in an administrative hearing. You may also ask for a modification of your support amounts, although this only applies to future payments. A number of states have informal or formal debt compromise provisions related to child support; Illinois allows this in limited situations under Project Clean Slate.

Will my debt be erased if my identity was stolen?

You are not liable for debt accrued through identity fraud. However, it’s critical that you file a police report and make a claim at the FTC’s IdentityTheft.gov website. Creditors and collection entities are required to stop collection efforts, and credit bureaus will block or remove identity-theft debts from your credit report when presented with evidence that the debt was fraudulent.

Contact Our Consumer Rights Lawyers For Advice On Interactions With Debt Collectors

We are confident that we can help you resolve any consumer rights dilemmas involved in responding to creditors or debt collectors. Contact us from anywhere in the U.S. by email or by phone at 888-915-0836.