When creditors transfer the collection of debts to a collection agency, borrowers often encounter problems dealing with collectors. Some collection agencies violate the Fair Debt Collection Practices Act and ignore the consumer rights of the borrower. Meanwhile, many consumers are not even aware of their rights and privileges.
If you have received a notice from a debt collection agency demanding you to submit payment, the first wise thing to do is send a dispute letter. Even when you know that you are in debt with the original creditor, sending a dispute letter has its benefits.
First, writing a dispute can buy you time to make plans for repayment. Second, you have the right to validate double check whether the charges you are requested to pay are accurate and are not a result of unseen errors. Third, exercising your right to dispute protects you from abusive debt collectors.
If you are not familiar with the process of disputing charges, below are some tips on how to write an effective dispute letter addressed to a collection agency:
Get directly to the point. You do not need to compose a lengthy letter, and less is more also applies to these types of situations. A short and precise description of the matter you are disputing is enough to get a debt collection agency's attention.
Be specific. In disputing charges, you need to be as specific as possible about the debts you are questioning. Writing the amount of debt and the complete name of the original creditor clearly is highly recommended.
Demand for a clear calculation of your debts. Your debt collection agency must give you a detailed run down of your debts. If you were not given this notice, ask in your dispute letter how they arrived with that total. You don't have to discuss the details of your debts or your payment history. Let the agency fill you in with the details.
Request for debt collection to stop. It is advisable to mention in your letter that the best way to get in touch with you is through mail correspondence. Tell the agency that you will not be available to answer their calls during the day.
Remember that debt collectors are forbidden by the law to make calls before 8am and after 9pm. If you are being represented by a lawyer, then all debt collection attempts should be directed to your lawyer, not to you.
Nevertheless, keep in mind that requesting a debt collection agency to make collection through telephone does not release you from your repayment obligations. You need to be conscious about your obligations and pay back what you owe.
Do not submit a dispute letter template. A lot of it are available in the internet and some consumers simply use these ready-made templates, changing only the details before sending them to the debt collection agency.
You can imagine how many letters of dispute debt collection agencies receive every day. Online templates have been overly used and are often ignored or dismissed by companies. Writing your dispute letter in your own words add up to the validity of your complaint. You will be taken a lot more seriously if you can present an effective letter.
Copyright (c) 2009 Suzy Vanstrusen