How to Dispute Debt With Collection Agencies

Disputing debts is simple and a must.

A debt collection agency is tasked with collecting a debt from a borrower. The company works on behalf of the original lender or may have purchased the debt from the original lender. In either case, the Fair Debt Collection Practices Act governs the debt collector. This law helps to protect borrowers from harassment and unfair debt collection acts. The law can help you to dispute a debt with a collection agency, too.

Instructions

1. Advise any debt collection company that contacts you by phone that you wish to see written proof of the debt. The Fair Debt Collection Practice Act requires that any debt collector provide written notice within five days of the first contact detailing why he is calling, the name of the creditor and the amount of the debt.

2. If the creditor's letter is not specific or does not provide enough information for you to familiarize yourself with the debt, send written notice within 30 days of receiving the debt requesting proof of the debt.

3. Write a polite, detailed letter outlining you wishes to dispute the debt. Ask that the collector explain the nature of the debt, how the debt was calculated, who the original creditor was, including their address. Request copies of any contracts or documents showing your agreement to pay the debt.

4. Request that the debt collector contact any credit agencies to which he is reporting the debt to alert them that you are disputing the debt. Further, request that a letter of your dispute be sent to the original creditor.

5. Include a statement within the dispute letter stating that you wish no further communication be sent to you regarding the debt.

6. Submit the dispute letter by certified mail or deliver in person within 30 days of receiving the initial collection notice.

Tips & Warnings

• If the debt collector is unable to show proof of the debt, he is likely to stop contacting you. If the debt collector has proof that you owe the debt, such as a signed contract, he has the legal right to further collect on that debt. If a debt collection agency violates these laws, contact an attorney Collection Practices Act gives you full ability to sue for any losses you suffered due to the violation of the law.

References

• ExpertLaw.com provides a detailed letter which can be sent to a collection agency to dispute their claim.

Resources

• ExpertLaw.com provides a detailed letter which can be sent to a collection agency to dispute their claim.