How to Dispute Credit Collections

Credit card companies often send unpaid consumer debts to collection agencies in bulk. It is rare for a collection agency to have access to the original paperwork for each account it purchases. This can leave a debt collector with very little information on the account other than the amount of the debt and the name of the debtor. Collection agencies will attempt to locate debtors as best they can, but occasionally make mistakes. If you feel that you are being pursued by a collection agency in error, the Fair Credit Reporting Act and the Fair Debt Collection Practices Act allow you to dispute the validity of the collection agency's claim with the agency itself and with the credit bureaus.

Instructions

1

Review all three of your credit reports as soon as you are contacted by a collection agency. By law a collection agency must wait 30 days from the date you first receive written notification of the debt before assuming that the debt is valid and reporting the debt to the credit bureaus.

2

Send a written request for a debt validation to the collection agency. Notify the company that the debt does not belong to you and that you are requesting proof that the debt is yours.

3

Wait for a response from the collection agency. The FDCPA does not set a specific time frame for how long a collection agency has to respond to a debt validation request, but until it can prove that the debt is legitimate, it cannot contact you about the debt or report the debt to the credit bureaus. If the collection agency agrees to stop pursuing you for the debt, ask for a statement in writing that all collection efforts will be dropped and the debt will not be sold to another company.

4

Write to the original creditor of the debt if the collection agency responds and does not agree to cease collection activity. Explain the situation and request a statement that you do not, nor have you ever, had an account with the creditor. If you have had a previous account, request a statement stating that the account is current.

5

Send a written dispute to each credit bureau if the debt appears on your credit report. Request a full investigation into the item. Include a copy of your letter from the original creditor stating that you never owed a debt to the company.

6

Send a copy of the letter from the original creditor to the collection agency if the collection agency continues to claim the debt is valid. Include a statement threatening to file a lawsuit against the company if it does not drop the current claim against you immediately.