How To Dispute A Debt
If you owe money to a business and think that they are not paying you appropriately, it’s important to know how to dispute a debt with the proper techniques. The first step to effectively doing this is learning what constitutes “incorrect payback.” Every case of incorrect payback is handled differently by different agencies, so it helps to know at least some of the things that may get your claim to go to a collections agency instead of to the original creditor. The first thing you should dispute if you think there is any evidence that you owe money that is incorrect is immediately call the original creditor, explaining the situation. This should be done within 30 days after you receive the invoice. By clearing up any error as soon as you possibly can, you will avoid the possibility of your debts going directly to a collections agency. It can take many months before you can receive any kind of confirmation from the original creditor about a disputed debt.
Collection agencies have to abide by the Fair Debt Collection Practices Act, so once you dispute an alleged incorrect debt with them, they have to investigate with the appropriate agency. If you owe a dollar amount or less, and you do not recognize the name of the original creditor, they are required by law to investigate for you first. If no investigation takes place, they must contact the original creditor by mail. However, if they find proof that you owe more than a dollar to a third party, they must stop harassing you and must return all monies to the original creditor.
How long does it take a debt collector to investigate? They have up to 30 days to look into your complaint, to write you a letter, and then to contact you by phone. If they do not respond within the allotted time frame, they are not obligated to remove the funds from your account. You may ask the creditor to provide proof that you are legally permitted to obtain the money from their company. Once they confirm this, the funds should be removed from your account.
How To Dispute A Debt In The Right Manner
Now that you know when you need to start the process of disputing a debt, you should consider how to go about disputing it in the right manner. First of all, never send the debt collector a written dispute, but rather you should send them registered mail with a copy of the credit agreement and the fine print. Keep these items as proof in case the collector calls you to verify the validity of the claims. Also keep copies of all correspondence regarding the disputing process, and you should also keep track of the date on which the collector has written you to remove the funds. After the specified time limit has passed, the collector is legally obligated to remove the funds from your account. In addition, the debt collector is required to inform you of their decision in writing within 30 days. This can be done through registered mail, by personal delivery or by registered mail. If they fail to do so, you should file a complaint with the Federal Trade Commission.