Wondering how to dispute collections or how todeal with debtcollectors in general?
Its a common issue.
Despite the often threatening undertone, you dont have to respond to a debt collector right away.
We Dare You to Take Control of Your Debt
Up for a debt challenge?
In 10 days,these 10 practical stepscould help you get back on the right financial track.
What Is a Debt Collector?
A debt collectors job is to settleconsumer debts.
If the debt collector is working for a third-party agency, what you owe likely is long past due.
If you keep avoiding payment, your debt may then be transferred to a debt buyer.
These companies purchase debts and have their own in-house debt collectors.
The FDCPA restricts the actions debt collectors can take to collect payments.
You have the right to cease all communication with your debt collector.
You have options when working with a debt collection agency on your debt.
It only applies to third-party debt collectors.
How to Dispute Collections
If you think a collectors information is wrong, go with your gut.
Information can get lost or jumbled as companies buy and sell debts.
And even if youre wrong, your due diligence could work out for you in the end.
Its important to keep written records of every communication so you have proof for any future disputes.
Debt collectors have to send a debt verification letter within the first five days of contact.
We didnt feel this was fair, said Gillaspia.
So I sent a legal demand letter to the collections agency.
It turns out the update didnt change the statute of limitations, and the inquiry worked in their favor.
Drowning in Expenses?
Maybe youre scrambling after your car broke down.
Or you got a medical bill you werent expecting.
Or inflation has finally pushed your budget over the edge.
You dont need to go it alone.
When money is tight,these resourcescan help you manage unexpected expenses without stress.
You could hire debt settlement companies likeFreedom Debt RelieforNational Debt Reliefto do the negotiating for you.
Seek Help from aCredit Counseling Agency.
In extreme cases, you could either report the harassment to your local law enforcement agency or the FBI.
you could also work with a personal attorney to file a cease and desist letter through certified mail.
This can be via email or physical letters sent through certified mail.
The CFPB provides a series oftemplate lettersto help you communicate with debt collectors in writing.
You also have the right to record phone calls with debt collectors.
Just double-check you notify them before you get going recording.
If you forget to record a call, keep detailed notes about what you discussed.
Even after youve made your last payment toward the debt, dont throw those records away.
You could need them again.
After a few days, the calls stop.
You brew coffee at home, you dont walk into Target and you refuse to order avocado toast.
(Can you sense my millennial sarcasm there?)
But they can only sue within the statute of limitations.
In most states, the statute of limitations to sue for debt is three to six years.
In most other situations, you wont be arrested for unpaid debt.
If you receive a call from someone trying to locate a relative, it might be a debt collector.
These calls are legal, but they can only call you once and only to locate the debtor.
