Once received, you have 30 days to request validation of the debt. They aren't required to validate, but must cease collection efforts and mark the account as disputed. After 30 days, the collector can ignore your request.
You should dispute a debt if you believe you don't owe it or the information and amount is incorrect. While you can submit your dispute at any time, sending it in writing within 30 days of receiving a validation notice, which can be your initial communication with the debt collector.
Within five days after a debt collector first contacts you, it must send you a written notice, called a "validation notice," that tells you (1) the amount it thinks you owe, (2) the name of the creditor, and (3) how to dispute the debt in writing.
Specifically, the rule states that a debt collector cannot: Make more than seven calls within a seven-day period to a consumer regarding a specific debt. Call a consumer within seven days after having a telephone conversation about that debt.
If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
Most states or jurisdictions have statutes of limitations between three and six years for debts, but some may be longer. This may also vary depending, for instance, on the: Type of debt. State where you live.
Debt collectors are not permitted to try to publicly shame you into paying money that you may or may not owe. In fact, they're not even allowed to contact you by postcard. They cannot publish the names of people who owe money. They can't even discuss the matter with anyone other than you, your spouse, or your attorney.
Cease Collection Efforts: If the creditor cannot validate the debt, they must cease all collection efforts until proper validation is provided. Dismissal of Lawsuits: If the creditor has filed a lawsuit against the debtor, failure to validate the debt can result in the dismissal of the case.
If the creditor does not respond within 30 days, TransUnion will delete the information from your credit report. Why did the disputed item not come off my credit report? If a dispute investigation shows that an item is accurate, TransUnion will continue to show that item in your credit report.
How to Request Debt Verification. To request verification, send a letter to the collection agency stating that you dispute the validity of the debt and that you want documentation verifying the debt. Also, request the name and address of the original creditor.
You'll have at least 60 days to dispute a transaction if there's a billing error or fraud. But if there's an issue with a product or service that you bought, you might have up to 120 days to initiate a chargeback.
Can I dispute the debt if more than 30 days have passed since I 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.
Typically, debt collectors will only pursue legal action when the amount owed is in excess of $5,000, but they can sue for less. “If they do sue, you need to show up at court,” says Lewis-Parks.
You have the right to send what's referred to as a “drop dead letter. '' It's a cease-and-desist motion that will prevent the collector from contacting you again about the debt. Be aware that you still owe the money, and you can be sued for the debt.
Validating the Debt
Within 5 days of being contacted by a debt collector, the collector must provide a written notice with information about the debt. The debt collector may instead include this information in the initial communication.
Ignoring or avoiding the debt collector may cause the debt collector to use other methods to try to collect the debt, including a lawsuit against you. If you are unable to come to an agreement with a debt collector, you may want to contact an attorney who can provide you with legal advice about your situation.
Even though your card issuer "writes off" the account, you're still responsible for paying the debt. Whether you repay the amount or not, the missed payments and the charge-off will appear on your credit reports for seven years and likely cause severe credit score damage.
Paying an old collection debt can actually lower your credit score temporarily. That's because it re-ages the account, making it more recent again. This can hurt more than help in the short term. Even after it's paid, the negative status of “paid collection” will continue damaging your score for years.
However, disputing a debt also forces the collector to restart the clock on when they can sue you.
While smaller debts are less likely to result in legal action, there are no guarantees. In many cases, though, debt collectors will prioritize larger debts, as they offer a higher return on the time and legal fees associated with a lawsuit.
In some states, you can choose jail instead of repaying debt
Some states, including California and Missouri, offer a third option for those who cannot afford to pay their criminal justice debts: choosing jail. By choosing to go to jail, it may be possible to avoid wage garnishment and reduce criminal justice debt.