How to Dispute a Debt?

By Mary Guimont

You have a right to dispute a debt at anytime you want. No matter how much time has passed since the collection agency has had the debt  If the collection agency tried to tell you that you can not that is simply not true.

You have the right to dispute a debt, at anytime

When the collection agency contacts you which it is usually in a letter. In this first letter they are suppose to inform you where the debt came from and the balance that is due. Along with it they are suppose to inform you of this:

• That unless you dispute the debt within 30 days of the receipt of that letter, they can assume it is valid. That does not mean you cannot dispute the debt at all if you miss the 30 days. You can always tell them it is disputed. Also, just because they assume it is valid, that doesn't mean it is legally valid.
• That if the you notify the debt collector in writing within the 30-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment you if there is one, and a copy of such verification or judgment will be mailed to you by the debt collector. You can, within the first 30 days, demand that the collector validate the debt for you. That is, prove that there is a debt that you owe. If you send in a timely dispute, the debt collection agency must stop collecting the debt until they have provided that validation. Failing to do so, the debt collector violates the  Fair Debt Collection Practices Act   If you dispute the debt, then anytime the collector reports that debt to a credit reporting agency, then they must report that the debt is a disputed debt.

• A statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor. Lawyers collecting debts are under the same obligation to provide you validation. Remember, a debt collector presented with a timely (within 30 days of receiving your notice) demand for validation also must stop all collection activities until they provided the requested validation. Filing a lawsuit is a collection activity. That means they cannot sue you until they have validated the debt. You can dispute the debt in writing. Here is a sample letter