Wednesday, February 22, 2006

What Portions of a Debt Can Be Disputed With Collection Agencies?

What Portions of a Debt Can Be Disputed With Collection Agencies?

The federal Fair Debt Collection Practices Act (FDCPA) lays out specific rules related to how debt collectors can and cannot treat you. Just because you owe a debt does not mean you can get harrassing phone calls, or have your work and neighbors called about your debt. In fact, you can legally request that collectors communicate with you through mail instead of the phone.

Unfortunately there are times when debt collectors have things wrong, and to get these problems fixed the debts must be disputed. Technically you can dispute any debt you'd like, but specific instances of debt you should dispute include the ones below.

Fraudulent Debt

    Identity theft is a growing problem in today's world, and when your identity is stolen it can cause major problems with debt accumulation and credit collectors.

    If your identity was stolen and debts were created illegally in your name, you can dispute one hundred percent of those debts with the collection agencies. They are required by law to take specific steps to investigate debts caused by identity theft.

Incorrect Debt

    Collections agencies are run by humans and mistakes can be made. Sometimes a collection agency may contact you about debts that are not actually yours. If they've confused you with someone else, you can dispute the entire debt they're attempting to collect.

    On a similar note, the collection agency may have the wrong amounts listed for debt you do owe. You can send letters of dispute for the wrong amounts of the total debt as well as when you feel the fines, interest or fees are unusually large.

Paid Debt

    If you are contacted by a collection agency about previous debts you had but already paid and settled, you may need to send a dispute letter. When sending a dispute letter about paid debts, try to include copies of all pertinent information, especially the cancelled checks or credit card charges showing the debt was paid.

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