QUESTION
How long does a collection agency have to notify me about a dispute?
Asked on Nov 17th, 2011 on Collections - Tennessee
More details to this question:
I sent in a dispute for a collection agency after I got a letter in the mail saying we owed. I contacted them and was told to write in a dispute, so I did. I called to check if they received it and they did. They said it was faxed to the original person that we actually "owe" the money to, and they were waiting on a response as of what that person wants to do about the dispute. The original person has not responded to the collection agency and it has been 3 months. They have sent the original person reminder faxes but have not been in contact with. I have called once a month since the dispute was sent in trying to get information. So, how long does the original person have to respond to the dispute?
1 ANSWER
Under the Fair Debt Collection Practices Act (FDCPA), the law that allows you to dispute the debt and get verification of the debt, there are no time limits for when a collection agency has to provide verification of the debt. However, the FDCPA requires that a collection agency cease all activity in collecting the debt until it provides the requested verification; arguably, this includes selling the debt to another collection agency or returning the account to the original creditor. If you timely disputed the debt and requested verification of the debt (i.e. within 30 days of the initial collection letter), the debt is, figuratively, in limbo until that collection agency provides you with verification of the debt.
If you receive any collection calls or letters regarding the debt, whether from the same collection agency or a different collection agency, prior to getting the verification you requested, you may be entitled to recover $1,000 in statutory damages and your reasonable attorney fees and costs associated with bringing an FDCPA claim.
Answered on Nov 18th, 2011 at 12:40 PM