1103 West Meeker Street, Ste 101 • Kent, WA 98032 • (253) 631-6484
Your Rights Under the FDCPA: Disputing the Debt
LAW OFFICE OF MARK
MCCLURE, PS
MCCLURE, PS
Why dispute the debt?
What are the most important things to know about your
right to dispute the debt?
reporting agency?
probably owe the money?
- Your FDCPA dispute rights are a powerful tool. Once you dispute
the debt, the debt collector must stop all debt collection activities
until it provides you with proof that you actually owe the debt. If
the debt collector can't provide you with that proof, it will never
bother you again. If the debt collector does provide proof of the
debt, you will be in a better position to decide what to do about it.
What are the most important things to know about your
right to dispute the debt?
- Under the FDCPA, your right to dispute the debt has three
separate components:
- Right to notice of the debt
- Right to contest the debt
- Right to verify the debt
- There are time limits on some of these rights, so it is important to
stay alert.
- RIGHT TO NOTICE OF DEBT: Within 5 DAYS of first contacting
you, the debt collector must send you a letter telling you:
- the amount of the debt
- the name of the creditor
- information about what you can do if you think there has been a
mistake or you don't actually owe the money
- You have thirty days from receipt of this letter to dispute the debt.
- Within thirty days of receiving the written notice of debt, send a
written dispute to the debt collection agency. You can use this
sample dispute letter (MSWord tm) as a model. Once you dispute
the debt, the debt collector must stop all debt collection activities
until it sends you verification of the debt. You can also use the
sample dispute letter to discover the name and address of the
original creditor.
As with all dispute letters, you should keep a copy of the letter for
your records. Also it is a good idea to send the letter certified
mail, return receipt requested, so you have proof that the debt
collector received it. (If certified mail is too expensive, you should
at least get proof of mailing. Consult your local post office for your
options.)
- RIGHT TO DISPUTE THE DEBT: Within 30 DAYS of receiving
notice of the debt from the debt collector, you can send a letter to
the debt collector disputing the debt and requesting the name and
contact information of the original creditor. The debt collector
must stop all debt collection activities until it can "verify" the debt.
RIGHT TO VERIFY THE DEBT: A debt collector verifies the debt
by giving you enough information about the debt so that you can
tell whether you actually owe it. The type of information that must
be provided changes depending on your specific circumstances.
In most cases, verification should include, at minimum: the amount
of the debt, the date of the debt, and the name and contact
information of the original creditor.
If you contest the debt on grounds of identity theft or mistaken
identity, verification should include a copy of the original signed
contract or note.
If you contest the amount of the debt, verification should include
information about payments made, and interest and fees charged
and/or waived.
- You can, but the debt collector will be allowed to continue debt
collection activities and will not have to verify the debt. If you want
to assert your right to verify the debt, you must send a letter.
Can you dispute the debt if more than 30 days have passed since
you received notice of the debt from the debt collector?
Yes, but again the debt collector will be allowed to continue debt
collection activities and will not have to verify the debt. If you want
to assert your right to verify the debt, you must send your dispute
letter within 30 days of receiving notice of the debt from the debt
collector.
Still, if you have a good defense to the debt, you might want to
dispute the debt even though more than 30 days have passed.
Dispute in writing, and include any evidence that supports your
claims (such as copies of cancelled checks showing you paid the
debt or a police report in the case of identity theft). If the debt
collector knows that you don't owe the money, it should not try to
collect the debt. The FDCPA prohibits debt collectors from making
false statements about the character, amount, or legal status of
your debt.
What if the debt collector never sent you written notice of the debt?
You can still assert your dispute and verification rights. The 30
day time limit will not apply.
reporting agency?
- If you dispute the debt, the debt collector cannot report it to a
credit reporting agency unless and until it verifies the debt. If the
debt collector has already reported the debt (before it received
your dispute letter), it must notify the credit reporting agencies that
the debt is disputed. After verifying the debt, the debt collector
can report it, but only as a disputed debt.
A debt collector violates the FDCPA and the Fair Credit Reporting
Act if it reports a debt that it knows, or should know, to be false.
probably owe the money?
- Probably. When it comes to the amount that you owe, and the
creditor to whom you owe it, why trust the word of the debt
collector? The debt collector could be lying, or it could have bad
information. The dispute and verification process is designed to
provide you with accurate information about your debt, so that you
have the information you need to decide what to do about it.
There is no reason to give money to a debt collector who cannot
or will not provide you with this information.
- Don't worry. Although you will lose your right to verify the debt,
you can still stop the debt collector from contacting you by sending
the debt collector a letter, called a "cease letter." A sample cease
letter is available here.
- If you are sued by a creditor or debt collector, failure to dispute
the debt cannot be used against you in court.
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