Debt Collection Dispute Follow-up Letters Stops Harassments

A debt collection dispute is used by consumers to challenge the validity of a debt. Consumers have the right to challenge or dispute debts alleged to be theirs by third party collection agencies.

These rights are spelled out in the Fair Debt Collections Practice Act (FDCPA). It allows you to write the collection agency and ask for verification of the debt. They have 30 days to respond and prove that you do, in fact, owe both the debt, and the amount as stated.

You can also request that they stop writing or calling you until they can verify the accuracy of the debt in question. If they can't provide proof that the debt belongs to you, they have to cease pursuing you for payment.

A debt collection dispute is very important for a number of reasons, both for consumers, as well as business owners.

Debt Collection Scams On The Rise

Its not unusual in today's climate to get a call from a collector saying you owe money for an unpaid debt. Its within your rights, and definitely within your interests to ask for written proof that this debt in question is yours. You also want to know that the agency calling you is the legal owner of the debt.

Unless you already know for a fact that you have an unpaid account(s), and you know the original creditor, its not a good idea to agree to any payment arrangements before getting proof in writing.

Business Owners: Timing Is Important

If you've done all you can to attempt to collect the debt, making phone calls and sending statements, then its very important to consider taking more intensive measures.

The psychological impact of introducing a third party collection agency can't be underestimated in its ability to do a more efficient and effective job at recovery than you've been able to internally. But again, acting early, and at the first sign that you're dealing with a problem customer, means the difference in getting some portion of your money. Or none at all.

If and when you decide to hire a collection agency, if you've already been in consistent communications with your customer, then they're less likely to be surprised to hear from them. And, they're less likely to dispute the charges because its fresh in their minds. And on some level, they expect to hear from them. They're not likely to challenge these charges with a debt collection dispute letter.

Sample Debt Collection Dispute Letters

Finally, don't be surprised if you never hear from the collector because when collectors cannot verify a debt, they usually drop the account or sell it to another collector.

Today's Date

Your NameYour Address

Collector's NameCollector's Address

Dear {insert name of collector or company},

I am writing in response to your (letter or phone call) dated {insert date}, (copy enclosed) because I do not believe I owe what you say I owe.

This is the first I've heard from you, or any other company on this matter therefore, in accordance with the Fair Debt Collection Practices Act, Section 809(b): Validating Debts:

(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.

I respectfully request that you provide me with the following information:

(1) the amount of the debt;
(2) the name of the creditor to whom the debt is owed;
(3) Provide a verification or copy of any judgment (if applicable);
(4) Proof that you are licensed to collect debts in (insert name of your state)

Be advised that I am fully aware of my rights under the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. For instance, I know that:

because I have disputed this debt in writing within 30 days of receipt of your dunning notice, you must obtain verification of the debt or a copy of the judgment against me and mail these items to me at your expense;
you cannot add interest or fees except those allowed by the original contract or state law.
you do not have to respond to this dispute but if you do, any attempt to collect this debt without validating it, violates the FDCPA;

Also be advised that I am keeping very accurate records of all correspondence from you and your company including recording all phone calls and I will not hesitate to report violations of the law to my State Attorney General, the Federal Trade Commission and the Better Business Bureau.

I have disputed this debt; therefore, until validated you know your information concerning this debt is inaccurate. Thus, if you have already reported this debt to any credit-reporting agency (CRA) or Credit Bureau (CB) then, you must immediately inform them of my dispute with this debt. Reporting information that you know to be inaccurate or failing to report information correctly violates the Fair Credit Reporting Act § 1681s-2. Should you pursue a judgment without validating this debt, I will inform the judge and request the case be dismissed based on your failure to comply with the FDCPA.

Finally, if you do not own this debt, I demand that you immediately send a copy of this dispute letter to the original creditor so they are also aware of my dispute with this debt.

Signature hereYour Printed Name

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