How to respond to a debt collection letter

How to respond to a debt collection letter

Did you just receive a debt collection letter? Under the Fair Debt Collection Practices Act you have a 30 day use-it-or-lose-it right to ask them to validate the debt.

In one dunning letter, a collection agency said a consumer owed $400 additional dollars after paying $700.

The consumer responded with this letter:

"Dear [debt collector name],

I am in receipt of your letter dated October 14, 2023. In short, yes, I do dispute the validity of a debt to Jitters Inc. Your letter indicates they have already been paid $700 but I do not recall paying them anything previously.

I would like to understand what services they provided me and why I am obliged to pay them.

If you report this debt to a consumer reporting agency you must report it as disputed."

Put the date you mail the letter in the letter head and the best practice is to use a method of delivery that includes a tracking number.

There are several important features to this response to their dunning letter. One is responding within 30 days. 30 days after you receive their dunning letter the debt collector can assume the debt is valid. Two is disputing the validity of the debt. Three is asking them why they claim you owe the money. Four is asking them to report any debts to consumer reporting agencies as disputed (it softens the blow to your credit score).

If they continue to try and collect the debt without providing validation, that opens the door to collecting damages from them for FDCPA violations.

If they provide nonsense "validation", write back challenging why their documentation is insufficient.

If they report the debt to your credit, write letters to the credit reporting agencies with a detailed explanation of why the debt is not owed. Use annualcreditreport.com to obtain true copies of your credit reports as evidence. Other tools that claim to show your credit report are often not admissible in court.

If you know the debt is not valid, if you challenged it within 30 days, and then they continued to try and collect the debt by reporting it to consumer reporting agencies, show the judge how they damaged you by applying for new credit. Creditors should provide you with adverse action letters if they denied or raised the interest rates on your loan because of the collection actions on your credit reports. You are looking for the adverse action letters, you do not need to go through with the loan.

Documentation wins in court. If they respond with nonsense, respond to them with another letter pointing it out. Include any documentation you have that supports your position in your letters to them, especially the first one. Once they are on the hook, prove your damages by applying for credit. Show the court how they have limited you and would not listen to reason.

Would you like a free case review? Do you have a question or a telemarketing, debt collection, or bankruptcy case that would make a great blog article? We might even review your pro-se complaint or motion in a blog post. Email peter@nwdebtresolution.com and/or nathen@nwdebtresolution.com and we may answer it for everyone!

Are telemarketers harassing you in Washington, Oregon, or Montana? My Washington State TCPA plaintiff law practice can help, just give us a call at 206-800-6000 or email peter@nwdebtresolution.com.

The thoughts, opinions and musings of this blog are those of Peter Schneider, a consumer advocate and Washington State plaintiff's TCPA attorney at Northwest Debt Resolution, LLC. They are just that, his thoughts, opinions and musings and should be treated as such. They are not legal advice. If you are looking to file a lawsuit for TCPA violations and unwanted calls please contact me for a consultation.