How to Dispute a Debt and Win | Simple Tactics I Business
 
 
 
 
 
 

How to Dispute a Debt and Win | Simple Tactics

/ 09:21 AM May 17, 2022

Don’t just toss it in the trash if you’ve received an inaccurate, unfair, or misleading debt collection letter. Instead, learn how to dispute a debt and win!

Learn How Debt Collectors Operate

Learn How Debt Collectors Operate

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Debt collection can affect even the most financially responsible individuals. A bill could slip your mind, you could disagree with your original creditor about how much you owe, or your billing statements could get lost in the mail before you even realize you have a debt. Debt collectors occasionally manufacture bonus debts to terrify people into paying them.

Even if you wish to disregard collection accounts, taking care of the history is usually the best idea for you and also your credit scores in the long run. Once you pay, the collector calls and mailings will cease, your credit will improve, and it is unlikely that you will be sued for the debt.

In all negotiations, knowing as much as you can about the other side allows you to be in an excellent position to get what you want out of the deal. The purpose of a debt collector is to collect as much money as possible, and they accomplish this in two ways. State law allows debt collectors to apply fees on the debt. On the other hand, Garbage debt buyers earn off loans they bought for pennies on the dollar.

Collectors only profit when debtors pay their bills. They can’t confiscate property or take money from your bank account unless they sue and get a court order and authorization to garnish their paychecks.


Ways In Disputing A Collection


Ways In Disputing A Collection

When you receive a call from a debt collector for the first time, your first move is to figure out who you’re speaking with. Obtain the collector’s info, company names, address, and phone number. Do not, however, divulge any personal information. Do not correct inaccuracies such as an incorrect phone number or address.

Avoid bringing up the subject of debt. It is possible that saying anything inappropriate will backfire. So, except for requesting the collector’s contact information, say as little as possible. If the collector refuses, it’s a telltale sign you’re dealing with a con artist.

During the initial phone discussion or within five days, the collector must supply you with information on the debt amount, the identity of the current debt owner, and the information you need to contact the original creditor. Reach out to the company from which you allegedly borrowed or purchased on credit using this information. You might have forgotten about the debt, in which case you should recognize and settle the loan.

Dispute The Debt Through A Letter To A Debt Collector

Your following line of action is to dispute the debt through a letter which is a verification letter to the caller’s address. Send a debt dispute letter in the first 30 days after receiving the debt collector’s contact information. If you do not answer within this time frame, the collector may believe the debt is real and approach you again.

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Writing a letter to dispute the debt is not as difficult as it seems. The dispute letter states that you respond to a collection call and do not believe you owe the loan. Also, ask the collector to show proof that you owe the amount and, if that isn’t possible, stop bothering you about it. If you need further information, such as contact information for the original creditor, you should inquire if you have not already.

FEATURED STORIES

The debt dispute letter might occasionally dispute the debt successfully. This case is especially true if the collection efforts are being conducted by a scammer or a debt buyer who lacks proof that you owe the bill. In one of these cases, you might never hear about it again. To guarantee you have a record of the dispute letter, keep sample letters and send the letter via a method that tracks the mail and indicates that it was delivered successfully.

It is important to check credit reports regularly. Most agency conflicts stem from loans that clients do not even own. Collection agencies sometimes rely on faulty and unconfirmed second or third-hand information. Hence, check credit reports carefully and dispute the debt claim by a collector through a letter.

Always Check Credit Reports

You can notice an issue early and rectify it before the debt reaches a collection agency by monitoring your credit report regularly. You can achieve a lot with credit monitoring, and l websites like experian.com offer free credit report services.

If you hire a lawyer within a month of receiving a judgment against you, you may be able to have it overturned if your lawyer files a motion to reconsider. The most important thing is to ensure that the debt collector has all the information needed to take the matter to court and await court judgment.

The debt collector frequently works off a line of data that states the amount owed, but there is no solid proof that you are the debtor. If you can’t figure out a way to stop the phone calls (or your text messages), ask for help from a non-profit credit counseling agency, such as InCharge Debt Solutions.

Credit Report Matters

Disputing a debit against collectors can be incredibly difficult; you might need to request debt validation. Its main objective is to squeeze money from each consumer on its list. Having Debt Solutions experts and certified counselors on your side can help deal with collectors and credit report problems, steering you toward perfect disputed debt solutions.

Assimilate Your Rights Under The Fair Debt Collection Practices Act (FDCPA)

Problems between consumers and debt collection firms have existed for a long time. The Fair Debt Collection Techniques Act (FDCPA) was created in 1978 to safeguard customers’ collection rights from abusive debt collection practices.


The FDCPA is the primary law that oversees debt collectors. Credit cards, vehicle loans, mortgages, school loans, and medical loans are all covered, but business obligations are not. The law is implemented by the Federal Trade Commission and the Consumer Financial Protection Bureau (CFPB).

If you can’t take phone calls at home or work, the FDCPA prevents collectors from phoning you; this is your right under the Fair Credit Reporting Act. It doesn’t specify how often they can call you; they can contact you several times every day. Threatening harassment, on the other hand, is prohibited.

No debt collection agency can tell others about the debt they’re trying to collect. This incident entails printing a written notice on your envelopes stating that they are attempting to recover a debt. They can’t convince you to owe more than you do or threaten to arrest you by pretending to be a law enforcement officer.

When Can A Debtor Be Reported To A Credit Reporting Agency?

When Can A Debtor Be Reported To A Credit Reporting Agency?

The Consumer Financial Protection Bureau debt collection rule requires debt collectors to follow specific protocols before reporting to a credit reporting agency. Once the debt collector has fulfilled the rules for contacting you, they can submit your debt to credit bureaus, as long as they follow credit reporting laws.

A Collection agency must perform one of the following things before reporting your debt to credit reporting agencies:

  • A debt collector must meet with you in person to discuss the debt.
  • A debt collector must also speak with you over the phone about the debt.
  • It would be best to send a written notice through certified mail regarding the debt (return receipt requested.) They are to wait a fair amount of time (usually a fortnight) for an announcement that it was not delivered
  • Or send you an electronic debt notification and wait for the same range of time for a statement that the message was not delivered.

When a debt collector contacts you with a validation notice concerning a debt, it implies they’ve met their obligation to contact you and can start reporting the debt to credit reporting agencies.

It’s essential to regularly check your credit reports for accuracy, whether or not you have a debt in collection.

You can file a complaint online with the CFPB if you believe a debt collector has wrongly given information about a debt to a credit bureau organization without following the FDCPA’s requirements.

Ways to Remove Collections from Credit Reports

Ways to Remove Collections from Credit Reports

There’s a chance to eliminate the collection from your credit report. A group remains on your credit record for seven years after your last payment, and there are three options for getting debt removed.

Contest The Assertion

Contesting is possible only if you do not owe the amount or if the collection agency cannot carry out legit verification of the debt you owe after a month. Erasing a debt from your credit report takes a lot of time; it may take up to seven years for a collection agency. You can mail them proof of when the delinquency began in this situation to get it erased early.

Invest In A Removal Service

Even if you settle the collection agency and pay the debt, the collection will appear on your credit report for seven years. Bargaining with the collection agency can help you have the collection removed. Pay the collection agency a fee, and they will stop reporting your collection; make sure the agreement is in writing.

Favorable Removal

Favorable removal can eventually remove a paid-off collection account from your credit report. You can request that your creditor remove the account from your credit report as a condition of full payment or goodwill gesture, but no creditor is compelled to do so.

Things You Should Not Do When In Debt

Things You Should Not Do When In Debt

There are some things you should avoid doing when you’re in debt to avoid getting into problems, and they’re listed here.

  • Ensure that you do not ignore the calls or letters telling you of debts owed, whether it’s your debt or not. Take steps to dispute the debt claim that has been indicated.
  • Do not speak on the phone. To retain paper evidence, it is preferable to communicate in writing, even for a disputed debt.

    Suppose you must speak on the phone, tape the call. You may need permission to record, depending on your location. Tell them you’re going to record. Permission is granted if they continue the dialogue.
  • Not attempt to conceal money or assets. Pushing funds into a friend’s or family member’s bank account is not ideal. In reality, it’s illegal and known as a fraudulent conveyance.
  • Please don’t believe anything they say. Debt collectors are renowned for seeking to collect money through any methods possible, including fraud. You can always seek a debt validation letter if you need additional time. Everything should be laid out for you, and you should have some extra time to double-check that the debt is exact.

Expired Debts

A debt cannot be collected if it expires. This kind of debt is termed a time-barred debt. This type has passed the statute of limitations. The length of time varies by location, although it is usually three to six years. You can check your state’s rule by calling your state attorney general.


Many debt collection agencies can try to collect a debt that has expired. However, a collection agency merely can not force you to pay it. Get the specific date the debt was incurred from the creditor or debt collector to see if it is time-barred. Also, make sure you do not utter anything in writing or orally that implies you recognize the debt. The timer may restart as a result of this.

Conclusion

A debt collection agency will frequently attempt to collect money from those who believe they do not owe the debt. If this happens to you, you have the option to protest the charge and, hopefully, disrupt the collection effort. There are rules to protect you from maltreatment throughout this collection activity, and you can report any violations to the Consumer Financial Protection Bureau’s complaint hotline. Although going up against forceful and demanding collection agencies may appear fruitless, the truth is that you can successfully dispute the debt claims.

Frequently Asked Questions (FAQs)

Frequently Asked Questions (FAQs)

What Is The Role Of A Debt Collection Agency?

A debt collector is a service provider, providing services to creditors and employed by debt collection organizations, while some work independently. Some of them are also lawyers. Customers’ debts that are at least 60 days past due —— delinquent debts —— are sometimes collected and remitted to the original creditor.

The law protects what Kinds Of Debts?

The FDCPA protects you against consumer debts like credit card debt, vehicle loans, medical bills, school loans, mortgages, and other household expenses. Not so with business debts.

Is It Possible To Be Contacted At Any Time And Anywhere By Debt Collectors Anywhere?

Even if you owe the debt, you have to grant permission to be contacted at any time. Debt collectors cannot contact you before 8 a.m. or after 9 p.m. If you inform them you’re not authorized to receive calls at work, they won’t be able to contact you.

What Is The Best Way To Eliminate Debt Collections From Your Credit Report?

Collections can be on credit reports for up to seven years after the missed payments. Regardless of whether you pay the collection accounts, the status will indicate the payment status. Unpaid debt in collection accounts will have a more significant influence on your credit scores than paid collections.

How Can I Get a Copy Of Your Credit Report?

You may get a free annual credit report from each of the three major reporting agencies at AnnualCreditReport.com. Equifax, Experian, and TransUnion are among these companies.

You can acquire free credit reports every week to keep track of your finances. You have the legal entitlement to the specifics of the claimed debt: amount, the current owner of the debt, and information necessary to contact the original creditor through phone calls within five days. If it doesn’t arrive in five days, make a note of it.

Request a copy of your credit report from each of the three major credit reporting agencies (Experian, Equifax, TransUnion) immediately. The Fair Credit Reporting Act (FCRA) mandates credit bureaus to furnish you with collection account information and credit score. Look over each report for mistakes, fill out a credit bureau complaint form, print your credit report, and highlight important information.

Can A Debt Collector Contact Someone Else About My Debt?

Debt collectors can’t discuss your debt with anyone other than you and your spouse. The debt collector must call your attorney if you have told them an attorney represents you.

However, a debt collector can contact other people to learn your address, phone number, and place of employment. However, they can not contact you more than once or tell you that you owe the debt they are requesting.

Is It Possible For Me To Obtain Verification Of Debt?

For verification of the debt, your best option is to write a debt dispute letter telling the collection agency to verify. Precise and straightforward debt dispute letters are essential for this purpose.

What Should I Do If I Have Reason To Believe A Debt Collector Has Broken The Law?

Besides filing a complaint, you can sue a debt collector in state or federal court. You must submit your lawsuit within one year of the collector’s violation of federal law. You could sue for damages if you lost wages or incurred medical expenditures from the debt collector’s actions. Then you can get a wage garnishment.

Even if you can’t provide proof for your case, the judge can still pay you attorney’s fees and court costs. The judge can also pay up to $1,000 in damages. Even if a debt collector violates the FDCPA and the court finds out, you may still owe money.

How Long Can Debt Collectors Pursue Past Due Accounts?

In some states, a debt collector has restrictions on attempting to collect on a debt if the statute of limitations for the state has expired. Even though a debt collector cannot sue in some states, they can continue to pursue consumer debt indefinitely.

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