How to Dispute a Creditor's Letter

Creditors are businesses or individuals who await outstanding financial obligations. If you spent $2,000 on your credit card, the credit card company remains a creditor until you pay off the debt. Creditors can communicate with debtors by telephone or mail, but they must comply with federal and state laws, including the Fair Debt Collection Practices Act. Some original creditors sell debts to third-party collection agencies.

Instructions

1

Create an organization method, such as a journal or notebook, so you can maintain records throughout the dispute process. For example, take notes each time a creditor calls you and highlight the time and the callers name.

2

Identify the reason for your dispute. A creditor may have sent you a letter regarding a debt created by an entirely unknown person who shares your name. If you ignore the letter because you did not incur the expense, you risk damaging your credit.

3

Prepare a letter that informs the creditor about your dispute and clearly asks for an investigation. Include account numbers, amounts and creditors. Attach proof of payment, such as a cancelled check, if you have already paid the debt. Send the letter via certified mail so you have evidence that you mailed it and, more importantly, that the creditor received it.

4

Review the progress of your dispute. If the creditor reported your debt, contact the three major credit reporting agencies (TransUnion, Equifax and Experian) to notify them about the dispute. The creditor, whether original or third party, must stop contacting you until the debt is verified.

5

Reconcile the dispute results. If the dispute does not generate any changes or resolutions, or if the debt is accurate, consult with a nonprofit credit-counseling agency or a licensed attorney. You have a right to sue the original creditor for various reasons, including threatening behavior and harassment.