If you’re facing debt collection, it’s important to know your rights. The Consumer Credit Protection Act as well as the Right to Financial Privacy Act will protect against some actions by banks, lenders, and credit card companies. Most borrowers don’t realize that debt collection agencies have certain rules and regulations they must follow, including when you dispute your debt.

Debt Collectors Cannot Try to Collect if You Dispute Your Debt

If you submit a written dispute of your debt within 30 days of the initial communication, a debt collector is required to stop all activity until the debt has been properly verified.

Debt collection is a serious process that can have a significant impact on your financial status. Because of this, debt collectors must follow strict guidelines in order to pursue collections. A debt collector must inform you:

  • Of the name of the creditor, and the amount you owe.
  • That you have the opportunity to dispute the debt.

A collections agency is also required to inform you of the debt dispute process, including:

  • If you do not dispute the debt within 30 days, it will be assumed as valid.
  • If you do dispute the debt within 30 days (in writing), a debt collector will provide verification.
  • If you request the contact information of the original creditor (if different from the current creditor, for example) the debt collector will provide this to you. Again, this must take place within 30 days.

It’s Your Responsibility to Follow the Timelines

While a debt collector is responsible for providing you with all of the above information, it’s your job as the borrower to adhere to the process and timelines. Be aware of the “written notice in 30 days” deadline—you may lose out on valuable rights and opportunities if you submit your dispute too late.

Why Dispute a Debt?

There are many reasons why you may need to dispute a debt, including if the debt is not actually yours, if the amount being collected is higher than the amount owed, or if the debt is being collected in error. If the debt is very old, it may not even be affecting your credit report anymore, so consider investigating further before making any payments.

The team at Briteside Solutions is here to help you restore your financial status to a healthy state. We’re passionate about ensuring that borrowers understand their rights, especially when facing stressful situations such as debt collection. We provide a variety of financial services, including discount programs, non-profit partnerships, a referral program for legal plans, credit monitoring, and so much more. Visit our website to get started today!