How to Dispute a Collection Letter

If you receive a letter from a collection agency requesting payment, there are steps you can take if you do not recognize the account in question, do not own the account or know that the amount requested is incorrect. Debt collectors are required, under law, to provide proof that a debt is valid if requested to do so by the consumer they have contacted.

Instructions

1

Gather any documentation you may have about the account, including receipts, invoices, bills, canceled checks, bank statements, credit card statements and any other correspondence you may have received.

2

Send a letter to the collection agency, requesting that they validate the accuracy of the debt in question. They will need to provide proof that they own or have been assigned the debt by the original creditor, complete payment history from the original creditor and a copy of any original loan agreements or applications signed by you. Make a copy of the letter you will be sending.

3

Mail the letter by certified mail with return receipt requested. Always keep a paper trail and a log of any collection phone calls you may have received as well. Store all correspondence, including original documentation, your letters to the debt collector and return receipts, in a safe place for later reference.

4

Allow 30 days for the collection agency to respond to your dispute. If you have received no response by then, send a second letter, including the original letter and a copy of the return receipt proving that they indeed received your first letter. In this letter, advise them that, due to their noncompliance with the Fair Debt Collection Practices Act, they will need to remove this listing from your credit report.

5

Report your dispute to the major credit bureaus. Send a copy of the correspondence with the collection agency and notify them that the collection agency has not responded to requests for validation of the debt. The credit bureaus will then conduct an investigation to determine the status of the debt.

6

Pay the debt or work out a settlement agreement with the collection agency, if it is found that the debt is indeed valid. Demand written confirmation of any settlement agreement before you make the first payment. Maintain the paper trail in case your payments are not properly posted during the course of the agreement.