Dispute Early, Dispute Often

It is common to get a call about a debt that is not yours or that is otherwise disputed. Sometimes the caller is just running a con game to see how many people will just pay.  More often, the debt is disputed. After all, if you complain that you did not receive what you ordered, the price was more than you agreed or the service was not performed, then paying the bill in full risks waiving your claims. Although you should offer partial payment when appropriate, less than full payment is often rejected.

Frustrated companies often find it easier to hand the issue off to a debt collector. Companies should tell the debt collector that the debt is disputed. However, some unscrupulous companies do not.

You should dispute the debt the first time you are contacted about it AND EVERY FOLLOWING TIME. If possible, also dispute the debt in writing by letter or email. Federal law places a time limit on disputing a debt, so don’t wait.

One benefit of disputing the debt is that federal law prohibits a debt collector from communicating or threatening to communicate to any person credit information which is known or should be known to be false, including the failure to communicate that a disputed debt is disputed. 15 USC § 1692e(8).

Debt collectors have increasingly become reporters to credit reporting agencies. If they know the debt (or a part of the debt) is disputed, it must be reported as disputed. This one issue may make the difference between your credit score losing a point or two or taking a nose dive. -Brandon L. Blankenship (205)912-8248Blankenship Harrelson, LLP