Can a debt collector still collect a debt after I’ve disputed it? | Consumer Financial Protection Bureau (2024)

FAQs

Can a debt collector still collect a debt after I’ve disputed it? | Consumer Financial Protection Bureau? ›

Once you've disputed the debt, the collector can't call or contact you to collect the debt until they've responded with verification of the debt.

A debt collector must stop all collection activity on a debt if you send them a written dispute about the debt, generally within 30 days after your initial communication with them. Collection activities can restart, though, after the debt collector sends verification responding to the dispute.

Does disputing a debt restart the clock? Disputing the debt doesn't restart the clock unless you admit that the debt is yours. You can get a validation letter to dispute the debt to prove that the debt is either not yours or is time-barred.

One of the most rigorous rules in their favor is the 7-in-7 rule. This rule states that a creditor must not contact the person who owes them money more than seven times within a 7-day period. Also, they must not contact the individual within seven days after engaging in a phone conversation about a particular debt.

Can you dispute a debt if it was sold to a collection agency? Your rights are the same as if you were dealing with the original creditor. If you do not believe you should pay the debt, for example, if a debt is stature barred or prescribed, then you can dispute the debt.

Who pays when you dispute a charge? Your issuing bank will cover the cost initially by providing you with a provisional credit for the original transaction amount. After filing the dispute, though, they will immediately recover those funds (plus fees) from the merchant's account.

As mentioned previously, card issuers usually remove disputed charges from the bill until the dispute is resolved, but you're still responsible for paying the rest of the bill.

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.

While there's no limit on disputes, if you send a dozen in the same week or month, you run the risk that credit reporting agencies might see you as someone who's frivolous with disputes. Make sure all your disputes are grounded in facts and that you provide documentation to back them up.

What are 2 things that debt collectors are not allowed to do? ›

Debt collectors cannot harass or abuse you. They cannot swear, threaten to illegally harm you or your property, threaten you with illegal actions, or falsely threaten you with actions they do not intend to take. They also cannot make repeated calls over a short period to annoy or harass you.

Don't provide personal or sensitive financial information

Never give out or confirm personal or sensitive financial information – such as your bank account, credit card, or full Social Security number – unless you know the company or person you are talking with is a real debt collector.

Debt collectors don't want you to know that you can make them stop calling, they can't do most of what they tell you, payment deadlines are phony, threats are inflated, and they can't find out how much you have in the bank. Furthermore, if you're out of state, they may have no legal recourse to collect.

If you recently had an item deleted from your credit report as a result of a dispute, it can be surprising if the collection suddenly reappears. Although this doesn't happen often, it is possible for disputed collections to reappear on your credit report.

Send a dispute

The FCRA allows consumers to dispute credit report errors and fraud. So, if you check your credit report and discover a collection account that shouldn't be there, you can send a dispute to Equifax, TransUnion, or Experian and ask them to remove it.

The federal Fair Credit Billing Act gives you the right to dispute a charge under certain circ*mstances, and many issuers make the process much easier than the law requires. But just as you shouldn't abuse a generous return policy, you shouldn't dispute credit card purchases without a legally valid reason.

If possible, send your dispute letter by certified mail (with "return receipt requested") so you know it was officially received by the collector. The collector then has 30 days to determine whether or not the disputed item is correct. The debt collector can continue collection activities. It must be corrected.

Yes—merchants can initiate consumer collections before submitting a chargeback rebuttal. Doing so reduces the risk of missing representment deadlines.

Disputed debt appears on credit reports. However, a credit bureau generally will not use it to calculate credit scores until the investigation is completed. For this reason, some lenders may not extend credit during the investigation period.