If You Dispute A Debt, The Collector Must Mark It As “Disputed” On Your Credit Report
If You Dispute A Debt, The Collector Must Mark It As “Disputed” On Your Credit Report.
Disputing A Collection Debt Can Help Your Credit Report
If you dispute a debt to a debt collector, this can be beneficial in several ways.
First, it lets the collector know that you are not agreeing to the debt.
Note: not disputing does not mean you agree to the debt but sometimes collectors who don’t understand the law think this…
Second, if the debt collector updates your credit report, it must show it as “disputed by consumer” which can help your credit report because some of the scoring models (to determine your credit score) ignore collection accounts that are disputed.
A lot of the credit scoring companies ignore disputed collection accounts as so many collection agencies put bogus accounts on credit reports.
If you have disputed the debt and the collection agency does not mark the account as disputed, then this normally will violate the Fair Debt Collection Practices Act (FDCPA) — in particular Section 1692e(8) which forbids false credit reporting.
So How Do You Dispute Collection Debt?
Two ways. You can do it verbally or in writing.
Both are effective and work but doing the dispute in writing is easier to prove.
Some collectors over the years have taken the position that all disputes must be in writing.
This is false.
This may be what they want, but that does not make it the law. The law is that disputes can be made over the phone.
If you do it this way, make sure you document carefully the conversation.
Who you spoke with, when, for how long, what you said, etc.
The better approach is to dispute in writing.
Keep a signed copy of your dispute.
Dispute Collection Debt To Protect Yourself
So many bogus scam collectors are out there — some that credit report.
If you don’t know if you really owe the collector who is credit reporting, then consider disputing it so you don’t have to deal with the arguments of the collector that you have somehow “agreed” that you owe the debt.
It is a bogus argument the collection agencies make, but avoid even having to deal with it by disputing the debt in writing.
After you have disputed the debt, pull your credit reports in 90 days or so and see if the account is marked as disputed if it has been updated.
If it has, then great — the collector is doing what the collector is supposed to do.
If not, then consider suing the collector.
To find out your options, you can call us, if you live in Alabama (we can’t help you if you live anywhere else) by dialing 205-879-2447.
I look forward to chatting with you.
Have a great day!