Dispute Letter To Collection Agency – Step by Step!
A dispute letter to collection agency may help you from the trouble of unwanted notices and telephone calls about unknown debts that you have no account of. Sometimes collection agencies keep requesting payment for an old debt though notorious phone calls and notices that you may have no account of or you know that the requested amount is not correct and this problem may become a headache and would start disturbing your routine life.
In case, if you receive such letters from the collection agency, you can question them through a dispute letter and the collection agency has to produce the details and the verification of the debt they are requesting from you. Federal law gives the right to each and every individual to question about any such debt claim from the collection agency which they have no account of.
Steps to write dispute letter to collection agency
First of all you need to make certain that the debt in question does not belong to you and for that you need to collect all the documentation you may have for the account in question including credit card records, bank statements, bills etc. Write a letter addressing the collection agency clearly emphasizing on the fact that you pose a dispute on the debt claimed by the agency and ask them to validate their claim.
According to Fair Debt Collection Practices Act, any individual can put a question against the unwanted or unaccounted claims of the collection agency and the collection agency, in turn, has to give a written proof of the debt claimed. Make your letter simple, precise and to the point clearly out showing the purpose for writing it. Seal it properly in an envelope and the dispute letter to collection agency through a registered mail requesting a return receipt.
It would be really helpful in keeping a track of your dispute letter and can be really helpful for the future if the company refuses or shows no interest in providing the details requested. In such cases, the receipt may act as a proof for the legal violation of the act.
If the collection agency claims for a debt through credit card and you think that the account provided in the credit report is incorrect, you can write a dispute letter to the credit bureaus about the same. You can request them for the clarification and removal of the debt record from the credit report.
The bureau, contacting with the collection agency, will then attempt to validate the claimed debt. If this doesn’t work, then you can file a case against the collection agency debt claim in the court too and if collection agency fails to submit the proof of the debt claimed, then they have to withdraw the claim.
Response for the dispute
- Usually a dispute letter to collection agency includes a 30 days mandatory reply back period during which the collection agency is required to provide the details of the debt in account to the person in question. If the agency fails to do so, then you can send a second letter along with the receipt copy of the first one and ask them to abide by the rule to provide you with the proof of the claim or to take away the debt request.
You may opt for reporting the issue to the credit bureau to investigate about the credit report of inaccurate debt claim. For the future reference, keep the copy of all the documents and correspondence and the receipt copy safe with you as they may act as a helpful tool if you have to file a case against the collection agency In case of unresolved claims.