If a first party collection contacts you about a debt you’re unsure of, consumers have the right to dispute it. Besides, you may want to verify what you owe the debt. You have the option to dispute the debt if:
- You believe you don’t owe the debt or the debt isn’t yours
- The amount claimed by the debt collector is incorrect
- The collection account isn’t yours
- The debt is past seven years
You must know that disputing a debt doesn’t mean the collector will forget about it. Instead, the first party collection agency will prove that you owe what they claim you do. Here we’ll focus on consumer options after disputing a debt.
Disputing a debit claim by a collection agency
A debt collection, be it first party collections or a third-party collection agency, is required by law to provide you with specific information about the debt. They’ll be required to provide written information if they don’t provide it initially within five days of contacting you. The information includes
- Creditor’s name
- The amount
- A clause stating
- Dispute the debt within 30 days
- The dispute within the states time
- The debt will be assumed to be valid if there’s no dispute within the indicated time
If consumers can identify inaccuracy, they may write a dispute letter directly to the collection agency. Moreover, this must be done within 30 days after the initial communication from the collection agency.
Besides, the letter must include personal identification information and the creditor. However, consumers must request the agency not to report the debt until the dispute gets resolved. The agency must prove that you owe the debt, and every information is correct once they receive the dispute letter from the first party collection agency.
Disputing a debt on a credit report
If your accounts include inaccurate records of your debt accounts, you may dispute the information and get it removed from the report. While consumers have the option to do this on the credit bureau websites, the credit bureau will investigate the validity and update the information when required.
However, if you owe the debt, the first party collection agency will continue to contact you and request payment. Understanding the rights as protected by the Fair Debt Collection Practices Act (FDCPA) helps stop unfair practices.
Debt collection suit
The first party collections may file a complaint against you if the agents fail to yield positive results. If such things happen, it’s best to file an answer to the lawsuit. This helps you avoid a default judgment that may allow the collector to garnish the wages.
However, you must know that each state has its guidelines on responding to a debt collection suit, including the deadline for filing an answer. But some courts in different states provide Answer Form to be completed and filed. Meanwhile, others allow the defendant to create their own document.
Final Wrap
You need to include the right solutions when collecting a debt. It’s vital to partner with a professional firm for seamless collection. Contact the experts today!
