Collection agencies are notoriously aggressive when it comes to the pursuit of money for delinquent accounts. Many states have laws such as the Fair Debt Collection Practices Act and the Fair Credit Reporting Act to provide consumers with some power in stopping collection practices on invalid debts.
Dispute the Claim with a Credit Bureau
The Fair Credit Reporting Act allows you to dispute any item on your credit report which you feel has been placed there in error. You are required to make this claim in writing to the credit reporting bureau which is showing the invalid information. The credit bureau is then required to investigate the claim by contacting the holder of the debt such as a collection agency. This helps determine if the credit information is valid or invalid. If the bureau finds the information to be false, it is required to immediately remove the information from your credit report and restore any damage the false information may have done to your credit score. This will effectively end any collection practices against you pertaining specifically to that debt.
Dispute the Claim with the Debt Collector
The Fair Debt Collection Practices Act allows you a 30-day window from the receipt of a written notice of a debt to dispute the claim directly with the debt collector. Upon receipt of your written dispute, the debtor is required by law to stop collection practices against you until the debtor can validate who owes them money. The debtor is also required to provide you with a detailed explain of why the debtor believes the debt is owed by you, along with any contact information of the original creditor.
Sue the Debt Collector
If a debt collector refuses to cease collection practices which you feel are invalid, you have the right to sue the debt collector in civil court. If the court rules the debt collection agency is in violation of the Fair Debt Collection Practices Act you are entitled to recover any damages resulting from the debt collector's illegal practices and any additional amount up to a limit of $1,000. Court costs and attorney fees may also be included in this lawsuit.
Reporting Debt Collector Violations
If you lack the finances to immediately retain an attorney, you may report the illegal debt collection practices to the Attorney General's office in the state which you are a full-time resident. If the debt collection agency is housed out-of-state, you can contact the Federal Trade Commission to report the violation. Multiple violations against a single debt collection agency could net the debt collector a criminal investigation on the state or federal level.
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