How to Dispute Wrong Information in Debt Collection

Disputing wrong information offered by a debt collector or in debt collection is important. A debtor should never pay a debt that could list a wrong amount due or even belong to someone else. Dishonest debt collectors may inflate balances or provide other misleading information about the status of collection accounts. Knowing your rights under the Fair Debt Collection Practices Act makes disputing collection accounts easier. Delinquent accounts usually move to collections status after the debtor misses three or four payments. Eventually, creditors may transfer or sell the accounts to debt collection agencies; in the process, mistakes are sometimes made as the accounts change hands.

Instructions

1

Review the initial written notice from a debt collector about a debt you allegedly owe. Federal law gives you the right to dispute any information in the notice within 30 days of receiving it from the debt collector.

2

Send the debt collector a letter stating that you're exercising rights under the Fair Debt Collection Practices Act and that you're disputing the debt as described in the debt collector's written notice. The law doesn't require you to be more specific than that about why you're disputing the debt. Simply entering a dispute by letter protects your legal rights. In your letter, ask the debt collector to send you proof of the debt, such as copies of billing statements, including the most current statement. By law, debt collectors must suspend collection efforts until they've provided verification of the debt.

3

Dispute other wrong information in debt collection by writing the credit bureau --- if the information is on your credit report --- and the debt collector. Get a copy of your credit report from AnnualCreditReport.com, the only site recommended by the Federal Trade Commission for free credit reports. Read instructions on the credit report for disputing the information by mail, telephone or online. Allow 30 days for the credit bureau to investigate and remove information if it agrees with your dispute. The debt collector may or may not respond. It's possible that a debt collector challenged by a creditor will simply stop collecting if it can't verify the debt. In that case, getting the information removed from credit reports represents a victory.