If You Paid a Bill & a Collection Agency Sends You a Bill, Do You Have to Pay It?

You receive a bill in the mail, but you're sure you paid it already. After checking your financial records, your suspicions are confirmed. Although this situation is unsettling, it does not have to adversely affect your credit. By following the proper procedures, you can avoid having to make a second payment for a bill that you have already paid.

Fair Debt Collection Practices Act

Collectors must present proof that the debt is valid upon your request. Proof can be a copy of the original bill, along with instructions for you to dispute the debt. The Fair Debt Collection Practices Act, or FDCPA, allows consumers the right to halt communications from a collector if they believe they do not owe the debt. Consumers must send written notice to the collector within 30 days after receiving a bill or other notification of the debt. Once the collector receives this letter, further communication must cease, except for notices of further action, such as filing a lawsuit.

Establish a Dispute

A claim that you have already paid a bill is one of several valid grounds established by the FDCPA for a dispute. Provide proof to the creditor such as a canceled check or copies of money orders. Provide this proof within 30 days after receiving the bill or collection order. However, if you miss this deadline, you do not forfeit your rights. Even if the creditor sues you, you have the opportunity to present your side of the dispute in court.

Contact Credit Bureaus

Check your credit report with each of the three major credit reporting bureaus: Equifax, Experian and TransUnion. While your dispute is under investigation, creditors are not allowed to place derogatory items in your credit report concerning that debt. In addition, credit reporting bureaus are not allowed to include the disputed item in credit reports provided to third parties. If derogatory items are present, ask the credit reporting bureau to place a notation in your file indicating that the matter is under dispute. If you prevail, ask each credit reporting bureau to remove any derogatory items related to that particular debt.

Write a Dispute Letter

When contacting a creditor, collector or credit reporting bureau concerning your dispute, include your full name and address, the account number or case number, and indicate the date that your received correspondence or a phone call from the collection agency or creditor. State why you are disputing the debt, and request verification from the collection agency that the debt is valid. Also include a request for the collection agency to stop contacting you and other third parties, such as friends and your employer, concerning the debt. Send the letter by certified mail with return receipt requested.