Fighting False Debt Claims

It is scary to think that a person could be harassed and threatened with punitive action to pay a debt that never belonged to them, but that is becoming a sad reality for more and more American consumers.

As creditors sell lists of consumer debt to collection agencies, more U.S. consumers are being hit with demands to pay for debt that belongs to another person or a debt that actually does not exist.

When Debt Collectors Harass the Wrong Consumer
Imagine that your name is Jane T. Smith, and you begin receiving threatening notices that you owe $20,000 in car payments and credit card debt for accounts held under the name Jane S. Smith. You’ve never done business with any of the creditors and you’ve never gone by that name, but the phone calls and threats will not cease. It might sound unbelievable, but for many Americans, it is a heart-breaking reality.

Debt collectors are legally forbidden from harassing any consumer that owes debt, but the violation can seem especially grievous when the debt never belonged to the consumer in the first place.

Such mistakes in debt information can occur when:

• Two people share the same or similar names
• Debt collection agencies have been given incorrect information that they neglect to verify or correct
• In cases of identity theft

Defense Against False Debt
The most critical thing to do when confronted with a collection agency that is seeking a false debt, is to stay informed of your rights and to quickly take action to protect those rights. It is important to speak with an attorney who specializes in debt collection defense before making any hasty decisions. Whocanisue.com can help you find an experienced debt collection lawyer in your area to assist you with debt collection laws, how to deal with debt collection agencies, and how to rid yourself of false debt.

In some cases, simply mentioning that you have retained the services of a debt collection attorney or sending the collection agency a strongly worded letter from your lawyer might be enough to end the case. At the very least, the collection agency is obligated to cease direct contact with you once you have informed them of your debt collection attorney’s involvement in the collection case.

How to Deal With the Collection Agency
It is a wise idea to become familiar with the Fair Debt Collection Practices Act, which provides a set of strict rules on how a debt collector may approach consumers. Be ready to strongly restate your rights and let the collection agency know that you will not be intimidated or coerced into paying a debt that doesn’t belong to you.

Listed below are a few ways you can deal with debt collection agencies that are pursuing false debts against you:

• Point out the mistake. As soon as possible – but no more than 30 days from the initial contact - inform the debt collector and creditor that they have contacted the incorrect party and that the debt does not belong to you.

• Keep a record of denial of debt. Make copies of all written denial of debts and mail the letters only by certified mail.

• Demand an end to contact. In writing, inform the debt collection agency that you demand that they cease and desist with any contact of you, your family members or your employer.

• Demand proof of the debt. Notify the debt collector of your right to see proof that the debt is yours. If they can’t produce convincing evidence of the debt ownership, they must stop pursuit of the claim.

• Watch your credit report. If discrepancies appear, it might signify that the creditor or debt collection agency has failed to remove records of false debt from your report.

• Take legal action. If the harassment continues or you find yourself being financially punished for a mistake that you didn’t make, you might have grounds for a civil lawsuit against the party that is practicing illegal debt collection.  

whocanisue.com can help you find an experienced debt collection attorney in your area to assist you with the complicated nuances of debt collection defense and the decisions that will affect your financial life for some time.