What Must a Creditor Do When You Dispute a Debt?

You have powerful rights when a debt collector contacts you. Understanding these rights can save you money and stress.

Debt collectors must follow strict rules. You can use these rules to protect yourself.

Collector Won't Stop Calling After Your Dispute?

If a debt collector ignores your dispute or files a lawsuit, you need to respond within your state's deadline. Get help crafting a powerful legal response today.

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Creditors Must Prove You Owe the Debt

Creditors hire debt collectors to pursue consumers who have fallen behind on payments. Some large creditors have their own internal collections departments.

When a debt collector contacts you about a debt you believe is invalid, you can dispute it. You have 30 days from the first contact to do this.

The Fair Debt Collection Practices Act requires creditors to take specific actions when you dispute:

Stop all collection activities until they verify the debt
Mail verification documents or original creditor details to you
Provide a copy of the judgment if one exists
Respect your right to dispute during the initial 30-day period

These rights come from FDCPA § 809. The law governs debt collection practices throughout the United States.

If a collector violates these rules, our partner Solo can help you respond appropriately.

When Should You Dispute a Debt?

Dispute a debt whenever you don’t believe you owe it. Collectors handle thousands of accounts and make mistakes.

Common reasons to dispute include:

You don’t recognize the debt at all
Someone stole your identity and created the debt
You already paid the full amount owed
The debt is past your state’s statute of limitations

When in doubt, filing a dispute is smart. You have nothing to lose and everything to gain.

Your Rights Under the FDCPA

The Fair Debt Collection Practices Act protects you as a consumer. The law provides three main protections:

Your right to receive proper notice of a debt
Your right to dispute the debt in writing
Your right to verify the debt with documentation

The FDCPA also bans dishonest collection tactics. Collectors cannot threaten you with arrest or use abusive language.

Your dispute right is time-restricted. You must send written notice within 30 days of receiving the first debt notice.

How to Write an Effective Dispute Letter

Your written dispute should include specific elements. Each element strengthens your position.

Request Validation Documents

Ask the collector to provide detailed documentation:

The original creditor’s name and contact information
The exact amount you allegedly owe
A copy of your signed contract with the original creditor
Proof that the creditor authorized this collector to collect
The collector’s license to operate in your state

Explain Why You’re Disputing

Be clear about your reasons for disputing the debt. Clarity helps collectors understand your position.

You don’t need to argue extensively. Simply state the facts clearly and directly.

Include Supporting Documentation

Gather proof that supports your dispute. Strong documentation makes collectors more likely to drop the account.

Helpful documents include:

Receipts or bank statements showing you paid the debt
Police reports about identity theft
Bankruptcy discharge papers if the debt was eliminated

Take your time gathering these documents. Thoroughness pays off.

What Happens After You Dispute

Once you file a dispute, the collector must stop contacting you. Collection activities cannot resume until they validate the debt.

If the collector validates the debt, they can resume contact. You can then ask them to stop calling in writing.

If you never hear back, the collector likely agreed with your dispute. They probably dropped the account entirely.

Monitor your credit report even if collection stops. Some collectors keep reporting debts they’re no longer collecting.

Here’s a real-world example:

Tina receives a notice from EFG Collections. She immediately recognizes she doesn’t owe this debt. She sends a written dispute right away. Two months pass without any response from EFG Collections. Tina checks her credit report and sees EFG still reporting the account. She calls the company and requests removal. The company admits the reporting was an error and removes it.

Protect Your Rights When Collectors Sue

Some collectors file lawsuits instead of validating disputed debts. You must respond to a lawsuit within the deadline stated in your summons.

Ignoring a lawsuit leads to a default judgment. The collector can then garnish your wages or freeze your bank account.

You can dispute the debt in your legal response. Include the same validation requests you would in a dispute letter.

Our partner Solo helps you respond to debt collection lawsuits quickly and effectively.

Take Action on Disputed Debts Today

Disputing a debt puts you in control. Collectors must prove you owe money before demanding payment.

Send your dispute within 30 days of first contact. Include a validation request and supporting documentation.

Monitor your credit report after disputing. Some collectors continue reporting debts they’ve stopped collecting.

You have powerful legal protections under the FDCPA. Use them to protect yourself from invalid debt collection.

Frequently Asked Questions

What is the FDCPA and how does it protect me?

The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects consumers from abusive debt collection practices. It gives you the right to receive proper notice, dispute debts in writing, and verify debts with documentation. Collectors must follow strict rules or face penalties.

How do I dispute a debt with a collector?

Send a written dispute letter within 30 days of receiving the first debt notice. Include a request for validation documents, explain why you're disputing, and attach supporting documentation like payment receipts or identity theft reports. Send the letter via certified mail with return receipt.

Can collectors continue calling me after I dispute a debt?

No, collectors must stop all collection activities once you dispute a debt in writing. They cannot resume contact until they send you verification documents proving you owe the debt. You can also request in writing that they stop contacting you entirely.

What happens if a collector doesn't respond to my dispute?

If a collector never responds to your dispute, they likely agreed with you and dropped the account. However, you should still check your credit report to ensure they stopped reporting the debt. Some collectors continue reporting debts they're no longer actively collecting.

What documents should I request when disputing a debt?

Request the original creditor's name, the exact amount owed, a copy of your signed contract, proof the creditor authorized this collector, and the collector's state license. These documents help you verify whether the debt is valid and whether the collector has legal authority to collect it.