How to File a Dispute Against a Debt Collection Agency
Although debt collection agencies serve a crucial economic purpose by collecting overdue accounts for creditors, mistakes do happen, leaving debt collectors aggressively pursuing some consumers for debts they do not owe. In an effort to protect innocent consumers from being held responsible for the financial mistakes of others, the U.S. Congress passed the Fair Debt Collection Practices Act (FDCPA) in 1978. The FDCPA provides you with the right to formally dispute your liability for collection accounts and demand proof that the debt in question actually exists.
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Instructions
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Read through any collection letters you received from the debt collection agency until you locate the company's mailing address. If you do not have any written communication from the collection agency that contains an address, pull a copy of your credit report. If the debt collection agency has already reported the account to the credit bureaus, its trade line will reflect its contact information.
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Write a letter to the debt collection agency disputing the validity of the debt. Demand that the company send you written proof that you owe the debt and that the amount it requests is accurate.
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Mail your letter to the debt collection agency using certified or registered mail. Ask for a return receipt. A return receipt provides you with written proof that your letter was properly delivered -- preventing the debt collection agency from claiming your debt validation request was never received.
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Tips & Warnings
The FDCPA does set a time frame during which a debt collection agency must investigate your dispute and validate your debt. Until the company sends the validation paperwork, however, it cannot continue trying to collect from you.
A common misconception about debt validation is that a debt collection agency must send you copies of your signed contract with the original creditor. This is not true. The FDCPA allows debt collection agencies to validate debts however they see fit.
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