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Earn a high-yield savings rate with JG Wentworth Debt Relief
How to Dispute Debt Collection (and Win)
by
JG Wentworth
•
July 15, 2024
•
6 min
We’ve all been there – your phone rings with some unfamiliar area code, so you absently pick up expecting the usual telemarketer spiel. But the voice on the other end hits you with a curveball: “This is an attempt to collect a debt.” Panic sets in as your mind races…debt? What debt? How much do they say I owe? Before you know it, you’re caught in the debt collector’s web, trying to figure out what is going on.
As maddening as those catch-you-off-guard collection calls can be, it gets even worse when the debt they’re trying to collect is flat-out wrong. Maybe the amount is grossly inaccurate based on your records. Or perhaps it’s a debt you already paid off or are certain isn’t even yours.
When debt collectors get the facts wrong, it can feel like an impossible maze of phone calls and letters. You have to stand your ground – state and federal consumer laws give you powerful rights to dispute any debt you deem inaccurate, inflated or altogether invalid. Here’s your game plan:
This information is provided for educational and informational purposes only. Such information or materials do not constitute and are not intended to provide legal, accounting, or tax advice and should not be relied on in that respect. We suggest that You consult an attorney, accountant, and/or financial advisor to answer any financial or legal questions.
Request debt validation
As soon as a debt collector comes knocking, you have 30 days from their first contact to demand debt validation. This means requesting evidence that you are in fact legally obligated to pay the debt they’re trying to collect.
Send your debt validation request in writing (more on that shortly). The collector must then provide documentation like your original creditor agreement, accounting records showing the debt amount, and statements linking the debt directly to your identity.
If they fail to validate or their validation materials are incomplete or inconsistent with your own records, you can outright dispute and refuse to pay the debt they’re trying to collect. Be sure to get their admission in writing that their demand for payment is withdrawn.
Monitor your credit
Inaccurate debt collections can show up and weigh down your credit reports. So, look for any collections you don’t recognize or believe to be wrong. If spotted, you can dispute the debt directly with the three major credit bureaus and submit evidence to prove it’s inaccurate. The bureaus must then investigate and remove any debt from your reports that the collectors fail to verify as legit.
Get it in writing
Throughout your dispute process, be sure to communicate in writing rather than just taking a collector’s word over the phone. Follow up any calls with a letter summarizing your understanding and instructions (keep a copy for yourself too).
If you ever feel harassed or misled, send a cease and desist letter to that collector demanding they stop all further contact, by law. Be meticulous with your documentation – it creates a paper trail that protects you.
Report shady practices
Collectors are legally prohibited from making false, deceptive or misleading statements while trying to collect a debt. If at any point a collector attempts to bully you into paying what you believe is an invalid debt, you can report them to the Consumer Financial Protection Bureau and Federal Trade Commission.
Both agencies play a “cop on the beat” role regarding the debt collection industry. Consumers can file complaints with the CFPB and FTC when they encounter debt collectors who make false statements, fail to provide debt validation, harass over debts not owed, or otherwise violate consumer protection laws. This allows the agencies to investigate and take action against law-breaking collectors.
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Struggling to keep up with your debt?
If you feel like your debt is spiraling out of control, and it’s only a matter of time before debt collectors have a valid case against you, you might want to consider debt relief. At JG Wentworth, we’ve helped countless individuals resolve their debt through our Debt Relief Program.* In fact, if you have $10,000 or more in unsecured debt, there’s a good chance you’ll qualify and get the JGW advantage:
- One monthly payment
- We negotiate on your behalf
- Average debt resolution in as little as 48-60 months
- 24/7 support
- We only get paid if we settle your debt
If you think you qualify for our program, give us a call today so we can go over the best options for your specific financial needs. Why go it alone when you can have a dedicated team on your side, helping you to avoid having to deal with pesky collectors?
The bottom line
Disputing an inaccurate or flat-out incorrect debt collection takes persistence and firm resolve. But we all have these powerful rights as consumers to fight back against improper collection attempts and defend the integrity of our credit profiles. Stay armed with knowledge and documentation, and those debt collectors will be the ones feeling the heat.
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* Program length varies depending on individual situation. Programs are between 24 and 60 months in length. Clients who are able to stay with the program and get all their debt settled realize approximate savings of 43% before our 25% program fee. This is a Debt resolution program provided by JGW Debt Settlement, LLC (“JGW” of “Us”)). JGW offers this program in the following states: AL, AK, AZ, AR, CA, CO, FL, ID, IN, IA, KY, LA, MD, MA, MI, MS, MO, MT, NE, NM, NV, NY, NC, OK, PA, SD, TN, TX, UT, VA, DC, and WI. If a consumer residing in CT, GA, HI, IL, KS, ME, NH, NJ, OH, RI, SC and VT contacts Us we may connect them with a law firm that provides debt resolution services in their state. JGW is licensed/registered to provide debt resolution services in states where licensing/registration is required.
Debt resolution program results will vary by individual situation. As such, debt resolution services are not appropriate for everyone. Not all debts are eligible for enrollment. Not all individuals who enroll complete our program for various reasons, including their ability to save sufficient funds. Savings resulting from successful negotiations may result in tax consequences, please consult with a tax professional regarding these consequences. The use of the debt settlement services and the failure to make payments to creditors: (1) Will likely adversely affect your creditworthiness (credit rating/credit score) and make it harder to obtain credit; (2) May result in your being subject to collections or being sued by creditors or debt collectors; and (3) May increase the amount of money you owe due to the accrual of fees and interest by creditors or debt collectors. Failure to pay your monthly bills in a timely manner will result in increased balances and will harm your credit rating. Not all creditors will agree to reduce principal balance, and they may pursue collection, including lawsuits. JGW’s fees are calculated based on a percentage of the debt enrolled in the program. Read and understand the program agreement prior to enrollment.
JG Wentworth does not pay or assume any debts or provide legal, financial, tax advice, or credit repair services. You should consult with independent professionals for such advice or services. Please consult with a bankruptcy attorney for information on bankruptcy.