A tactful method on how to deal with the collection agencies

A tactful method on how to deal with the collection agencies.

I tried to figure out a possible plan on how to deal with the collection agencies. This should be done only when you think that the creditors have not provided you correct information about your debt.

When your debt is about to be sent to a collection agency for further collections, send your original creditor a dispute letter through certified mail with return receipt requested. The main intention is to have some dispute on record.

When the collection agency gives you a call or sends a letter, inform them that the matter is in dispute. Write a letter highlighting the fact that if they report to the credit bureau and fail to mention the dispute notation, it can result in legal actions. Since you are involving yourself in between the matter, you may need to enforce all your legal rights under the fdcpa and FCRA. You may also use the civil law, common law and the uniform commercial code to keep it within the legal lines.

The possible result of doing this action is that the collection agency will drop the idea of reporting to the credit bureau or even contacting you. If the collection agency transfers accounts to some other agency, follow the same act until your debt passes the statute of limitation period. If your account is in dispute, FICO ignores the trade lines and hence negative markings cannot be put in your credit file.

Either the original creditor has to provide you the correct information about your debt or it will be sent to some collection attorneys also. For the collection attorneys, the word ‘Disputed Debt' legally means "Countersuit". Thus, the creditor will have a tough time to put a default judgment against you.

The reason behind doing this is very simple. The creditor is not able to provide you the correct information about your debt and the collection agencies or the collection attorneys don't have the legal powers to solve an in-house dispute. They even can't compel the original creditor to settle the said debt.

Let's take the worst side of this story. If by chance, you are required to appear in the court, you will have a very stronger and genuine reason to prove your side of the story. You will have all the written records to prove that you were always willing to pay the said debt. All the collection agencies and the creditors were notified about the dispute no action has been taken till date. The creditors and the collection agencies will have no words to comment on your note. This is somehow the sad fact about the collection industry.