How to Dispute an Account When the Credit Accounts Are Sold

A credit account is any debt that you accrue through credit alone, without having to provide collateral. Two common types of credit debts are credit card debt and medical debt. If you stop making payments on a credit account for long enough, the creditor will eventually sell the account to a collection agency. A collection agency will then add fees and attempt to collect the debt. Collection agencies also make negative notations on your credit report that remain for seven years from the date the debt first went six months delinquent. A successful dispute against a collection agency will result in the negative information being removed from your credit file.

Instructions

1

Pull your credit reports and check the age of the debt. The older the debt is, the less likely a collection agency is to still have the original paperwork for the debt. This gives you a higher chance to successfully dispute the report.

2

Write a dispute letter to the collection agency requesting that the debt be validated. The Fair Debt Collection Practices Act states that every consumer who requests one is entitled to a debt validation and that collection activity cannot resume until a validation is provided.

3

Send your dispute letter certified mail and request a return receipt. Someone from the collection agency must then sign for the letter when it arrives. The signature card will be mailed back to you. Keep the card for your records.

4

Wait for the collection agency to provide you with a legitimate validation. A legitimate validation should constitute copies of your original agreement to pay the debt, complete with your signature. A legitimate validation may also be a copy of the collection agency's agreement with the original creditor to purchase and collect the debt. A simple printout containing your name and the amount you owe does not constitute validation.

5

Send the collection agency a second dispute letter if you are not provided with legitimate validation. Remind the collection agency that unless it can provide you with proper documentation proving that the debt belongs to you, the negative notation must be removed from your credit report and all contact with you must cease.

6

Mail a copy of your original dispute letter, the signature card from the dispute, copies of your credit reports (with the collection agency notation highlighted), and a letter explaining the situation to each of the credit bureaus that are currently reporting the debt. Explain that you are requesting a full investigation be conducted into the validity of the debt. Due to guidelines set forth in the Fair Credit Reporting Act, the credit bureaus are legally obligated to investigate any disputed items.

7

Wait for the results of the credit dispute. The Fair Credit Reporting Act gives each credit bureau 30 days to investigate the validity of a disputed debt and provide the consumer with the results of the investigation. If your dispute is successful, you will receive an updated copy of your credit report with the negative information removed.