How to Dispute a Debt and Win!

We’ve talked a lot on our blog about how to handle your unpaid debts so that your credit score doesn’t tank, because a low credit score makes it much harder for you to borrow money, buy a house, and purchase a vehicle. Even potential employers today have the ability to find out how you handle money before deciding whether or not to hire you. For the aforementioned reasons, keeping a decent credit score is something that rightfully demands your attention.

Keeping tabs on your ever-shifting credit score and the details contained within your credit report(s) is the easiest way to ensure that you don’t have any long-lost debts doing serious damage without your knowledge. If and when you discover an unpaid debt that belongs to you, it’s important to pay the debt ASAP to avoid losing valuable credit score points. Working with your credit repair attorney in NJ, you can negotiate a debt pay-off schedule that works for you. Remember to check back in with the credit reporting bureaus as soon as you’ve paid off said debt to make sure it has been removed from your credit report.

What happens if you receive a notice from a collection agency for a debt that you have no recollection of owing? While your first instinct may be to toss it in the trash with the rest of the “junk mail,” slow down for a minute. There are two very good reasons why you should NOT ignore any letter from a debt collector.

  1. Everyone makes mistakes. It’s possible that you do owe an original creditor money. Bills are be misplaced, mis-sent, and lost every day. The original creditor may have also made a billing error when they originally charged you. The bottom line is that it is possible that you owe money that you forgot about or didn’t know about.
  2. Debt collectors can continue to attempt to collect on a debt, even if it was never your debt to begin with, unless you respond to them, in writing, within 30 days. Therefore, even if a collection agency is completely falsifying information in the hopes that you will simply send them some money, do not ignore it.

If you are being held responsible for a debt that you don’t recognize or remember, you can dispute the debt by sending the collection agent a letter via Certified Mail, with return receipt requested. In your letter, state that you are writing to dispute the alleged debt, and that all collection attempts should cease unless they can provide you with all of the following:

  • The full amount of the alleged debt
  • The name and address of the original creditor
  • Proof that you are responsible for the alleged debt
  • Documentation showing that the collection agency is licensed to collect debts in New Jersey

If the person attempting to collect money is doing so fraudulently, you should never hear from them again once they receive this letter from you. On the other hand, if there is a legitimate debt that you’re responsible for, you will receive the information you requested. Either way it is advisable to contact a credit repair attorney and/or a consumer fraud attorney in order to get your desired results and to keep your good credit score safe.

Image: “Credit Dispute” by Cafe Credit – licensed under CC 2.0

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