A collections dispute letter helps stop abusive collections activity as part of the Fair Debt Collection Practices Act. Read on to find more information about it.

The Fair Debt Collection Practices Act (FDCPA) was approved in September of 1977. It provides legal protection from abusive debt collection and promotes fair debt collection. The FDCPA has regulations that give rights to consumers involved with collectors. There are penalties to collectors who violate FDCPA. If a consumer receives notification of a debt, they have the right to dispute the claim within 30 days of receipt by sending a collections dispute letter.

A collections dispute letter requests the amount of the debt and the name of the creditor. Consumers can ask for a copy of the judgment and proof the collector is licensed to collect debts. This is compliant to Fair Debt Collection Practices Act, Section 809(b): Validating Debts. The collector must stop collection efforts until the debt is verified in writing by the original creditor.

A collections dispute letter reports abusive collector conduct violating the Fair Deb Collection Practices Act. Prohibited conduct include behavior that might be considered abusive or deceptive. Collection practices that make contact with consumers after 9:00 PM and before 8:00 AM is unauthorized. If a consumer requests discontinued contact either at place of employment or anywhere else, the collector must comply. No abusive or threatening language is acceptable.

The threat of legal action, tone of voice, or other threatening words of collection is abusive and violates the law. A collector threatening to garnish wages is conducting illegal behavior and can be reported to the Federal Trade Commission. Collectors are not to report or publish consumer's information on a list or to consumer's credit report. This violates privacy laws.

Consumers may also send collections dispute letter to credit bureaus for disputed debts. Some credit reports show errors, mistakes, and inaccurate information. Consumers may ask the creditor for detail from such as amount and relevant dates. Corrections that are needed are applied by the creditor to the credit agencies. Verification of changes are to be made in writing. Consumers need to follow up with a final report summary to ensure a change in credit scoring.

Collectors work to collaborate with creditors instead of using aggressive collection practices. They communicate creditor information to the consumer. Collectors are required to provide consumers with the debt amount and creditor information. If the consumer disputes the claim, the collector compiles all evidence and facilitates contact with the original creditor.

Section 805 of the Fair Deb Collection Practices Act requires collectors to inform consumers their right to dispute a debt claim. If the evidence of debt is not available and cannot be acquired, then the collection activity must stop. The collector is authorized to file a lawsuit of collection activity is valid and the consumer resist a payment agreement. The lawsuit puts a structure and method in place for legal collection activity. The legal process of collection is dictated by the law. Collection agencies cannot escalate collection activity on their own. Visit Credit Umbrella Inc. to get collections dispute letter.

The Federal Trade Commission provides a report each year on FDCPA enforcement activity. Consumer complaints about abusive collection activity are reflected in the report. The Federal Trade Commission reports that the highest complaints are against debt collectors than any other industry. A consumer's collections dispute letter demands legal compliance from the collector. Buy credit repair software. If that fails then the consumer is authorized to contact State Attorney General, the Federal Trade Commission and the Better Business Bureau.