How to Clear Charges From Collection Agencies

Collection agencies make a profit purchasing old debts from creditors and pursuing debtors for unpaid balances. If a collection agency claims you owe a debt, you can expect to see evidence of that fact on your credit report. In addition, a collection agency may also opt to file a lawsuit against you at your local court. You have options available to help you clear any charges against you by a collection agency, either in court or on your credit report.

Instructions

Clearing Your Credit Report

1

Write a letter to the collection agency demanding that it provide you with proof that you owe the debt. The Fair Debt Collection Practices Act (FDCPA) gives you the right to request that a collection agency validate any information it reports to the credit bureaus. Stipulate that a simple printout of the amount that you supposedly owe does not constitute legal proof that you owe the debt, only proof that the debt exists.

2

Wait 30 days for the collection agency to provide you with the requested validation.

3

Send a second letter to the collection agency demanding that it remove the debt from your credit report, in the event that you do not receive a response to your original request, or receive a printout of the debt and the amount owed. Inform the collection agency that failure to properly validate a debt while continuing to report it to the credit bureaus is a violation of the FDCPA and you are within your rights to file a lawsuit.

4

Dispute the collection agencys entry on your credit report with the credit bureaus via mail. Include any documents that support your position that the debt is invalid or does not belong to you.

5

File a lawsuit against the collection agency that is reporting the debt if it is not removed from your credit report. Often merely filing the lawsuit will result in the collection agency withdrawing the derogatory credit information.

Clearing Court Charges

6

Respond to the court summons over the debt as soon as you receive it and file an answer. A failure to respond within the given time frame can result in you involuntarily forfeiting your ability to defend yourself--and the collection agency will win by default.

7

Check the statute of limitations on the debt. If the statute of limitations for debt collection in your state has already expired, you can request that the lawsuit be dismissed on these grounds. Although a creditor can sue beyond the statute of limitations, it cannot collect on the lawsuit if a debtor points out the expired time frame in court.

8

Submit a discovery request to the collection agency requesting proof that you owe the debt, proof that it has been legally authorized by the original creditor to collect the debt, and proof that it is licensed to collect in your state.

9

Compile any evidence you have that invalidates the debt, such as documents that prove the statute of limitations has expired, or a letter from the original creditor stating that you never held an account with the company.

10

Appear in court with your evidence and present it to the judge. In many cases this will not be necessary as the collection agency will withdraw its lawsuit as soon as you request documentation it is unable to provide. Point out any request for information you made to the collection agency that was ignored.

11

Request a written copy of the courts decision after you win the case. Keep the paperwork in the event that the debt is sold to another collection agency. If and when this occurs, you will be able to prove that the law has already established that you do not owe the debt.