How to Challenge a Debt

Constant calls from a debt collection agency are bothersome, especially if you are wrongly accused of a debt. Bill collectors who call you in an attempt to collect debt must be in compliance with the Fair Debt Collection Practices Act. Avoid answering questions or admitting to any debt over the phone. Inform the collector that you wish to handle the matter directly with the creditor. Insist they follow the FDCPA and send you information on the debt so that you may review its validity. To challenge a debt, follow a few simple steps.

Instructions

1

Know your rights. After initial contact, the collector has five days to send you a letter stating the collection. The letter must also include how to proceed if you do not owe the debt. If you tell the debt collector to stop calling, they are only allowed one more phone call to explain how they wish to proceed. Keep records of all phone calls and letters. If the collector violates your rights, report it to your state Attorney General's office.

2

Write a dispute letter. The dispute letter should be a formal, legal letter. The tone should be professional and state the facts. Include documentation to support the dispute. Supporting documents can include identification, payment receipts or court documents. You must do so within 30 days of receiving the letter from the collector. Mail the letter to the address provided on the collection notice. In order to obtain proof of receipt, send the letter certified mail.

3

Monitor your credit report. As soon as you dispute a debt with a debt collector, they are required to report the debt to credit bureaus as "in dispute." The dispute will remain on your credit until the collector sends you proof that the money is owed.

4

Wait for a response. If the collector does not provide you with proof, they must cease contact. If the collection agency does not follow the proper procedure, contact the major credit bureaus to file a dispute. Equifax, Experian and Trans Union will allow you to dispute any debt on your credit report. You must have a valid reason and proof to back your statements.

5

Report violations. If the collector is not following the guidelines set by Federal Trade Commission, file a complaint. You can file your FTC complaint online or by calling the FTC at 800-382-4357. You can also notify the FTC by mail at Federal Trade Commission, Consumer Response Center, 600 Pennsylvania Ave., NW, Washington, D.C. 20580.