How to Dispute a Collection Notice
If a debt collector calls or sends you a collection letter, and you know the charges are incorrect, you have legal recourse to stop harassment. By law, a collection agency must provide proof that the debt is yours, and stop harassing you to pay, once you write a formal letter of dispute.
The steps below will show you exactly how to write a letter of dispute for a collection notice. This does not relieve you of your responsibility to pay should you actually owe money, but it does give you time to learn the exact charges, and get debt collectors off your back.
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Instructions
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When you first receive a notice in the mail or phone call from the collection agency, jot down 4 things: the name of the agency, their address, the amount you supposedly owe, and the date of the phone call or letter.
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Next, draft a formal letter of dispute. Write your name, address, and date at the top of the letter, and the name and address of the collection agency below. Begin your letter with "To whom it may concern," or "Dear [name of agency]."
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In the first sentence, state that you are writing to dispute the notice received on XX/XX/XXXX that you owe $XXX.
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Next, request that the collection agency provide you with the following things in writing:
(1)The name of the original creditor (i.e. the company that hired the collection agency to harass you)
(2)Proof that the collection agency is licensed to collect debts in your state, and their license number, plus the name of the agent sent to collect this debt
(3)The exact amount that you supposedly owe, and a description of the product or service that you supposedly have not paid for
(4)The date of the transaction
(5)Copies of documents that prove you made a purchase or agreed to pay
(6)Copies of any judgments (if applicable) -
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Also, you must demand that the collection agency provide a copy of this letter to any credit bureaus they report to. (such as Trans Union, Equi-fax, etc.) If your credit score is negatively impacted by a false collection claim, you can seek legal damages.
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Lastly, state that you are aware of you rights under the Fair Debt Collection Practices Act, and the Fair Credit Reporting Act. Namely, that the collection agency must respond to your request withing 30 days, and in failing to do so, this collection case may be closed. Also, no debt collector can call you or try to get money from you or your employer.
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Sign and date your letter, make a copy, and then mail it. Be sure to keep copies of all correspondence between you and the debt collectors.
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Read sample dispute letters online for more detail. Also, visit the website of the Federal Trade Commission so that you can read the full text of the Fair Debt Collection Practices Act, as well as the Fair Credit Reporting Act.
Know your rights! And don't let collection agencies try to trample them.
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