How to Dispute Credit With Collection Agencies
Debt collection agencies are bound by the guidelines outlined in the Fair Debt Collection Practices Act--FDCPA. The FDCPA allows debt collection agencies to contact consumers in an attempt to collect a debt under certain specific conditions. Consumers also have the right to dispute credit accounts that the collection agencies claim they owe. Timing is important when filing a dispute. Consumers have 30 days to dispute credit accounts with collection agencies. Once a dispute is filed, collection agencies must stop collection activities on the account until proof of the validity of the credit account is established.
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Instructions
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Start a file relating to the credit account upon first contact from a collection agency. If the first contact is a phone call, note the date and time of the call. Also make note of any tactics that the collection agency may have used to intimidate you into repaying the debt. The FDCPA has strict guidelines for the times of collection calls and strict penalties for any type of harassment.
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Request that the collection agency send you something in writing referencing the alleged debt. Include the letter from the collection agency in the file.
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Write a letter to the collection agency to dispute the validity of the credit card debt. State in the letter that you do not believe that you owe the alleged amount and request validation for the account which includes the nature of the debt, the calculation of the amount allegedly owed, copies of the contracts or documents that form the basis for the alleged debt and the name and the address of the original creditor.
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Request in the same letter that the collection agency contact the credit agencies where it reported the alleged debt to advise them that the debt is disputed. Also request that the agency forward a copy of your letter to the original creditor to inform it of the dispute.
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Mail the dispute letter by certified mail within 30 days of the date that you received the initial letter from the collection agency. Keep a copy of the letter in your file.
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Tips & Warnings
Keep a copy of all correspondence with the collection agency in the file. Make notes whenever you receive a phone call from it regarding the alleged debt. The information in the file will be helpful if you decide to sue the collection agency for unfair practices.
