Jun 15, 2011 Mike Garretson
Receiving an inaccurate notice of debt can produce feelings of panic or anger from conusmers, especially if they are typically punctual with bill payment.Fox Business' Debt Advisor explains the steps an unwarranted collection recipient can take to avoid payment and stress. It's important to note that simply calling and disputing a debt with debt collection agency does not have an effect on the collection process. In order to put a halt to the phone calls, the news source explains that a written letter must be sent to the agency's address. The debtor is protected by the Fair Debt Collection Practices Act, which states if a written letter is sent, collection activity must cease until money owed is verified and proof is sent to the consumer. Identity verification can also be a quick fix to the issue. Occasionally, an agency will send a notice to the wrong name or address, but a comparison of social security numbers may provide proof that the debt was wrongly assigned. However, New York-based Winfield Firm points out that a cease contact letter does not impede lawsuits, and if the debt is transferred to another agency, the letter no longer applies.