If you have a dispute over a creditor charge and you are not getting anywhere over the phone, you may need to send the creditor a dispute letter in writing. You have the right to dispute a charge in the Fair Debt Collection Act. Be sure to keep a record of all correspondence. You want to keep a paper trail of when you sent in your documentation just in case they want to give you a hard time about it.

Try To Resolve A Dispute Over The Phone First Before Legal Action

You should only send in a written dispute as a last resort. See if you can resolve the matter over the phone first with the creditor. If you do not get anywhere then you should send the creditor a written dispute over the charge.

Date: ______________________

__________________________________________________

__________________________________________________

__________________________________________________

To: ________________________

I am writing to dispute the following bill that you are attempting to collect from me.

Name(s) on account: ___________________________

Account #: ______________________________

Creditor name: _____________________________________

Amount of dispute: _____________________________

I am disputing this bill for the following circumstance(s):

_____________________________________________________________________________

_____________________________________________________________________________

Please return this bill to the creditor immediately and remove any “sent to collection agency” notations that may be in my credit profile.

Thank you for your prompt attention to this matter.

Sincerely,

________________________________________

Signature

Name: ____________________

Address: ____________________

____________________

Home phone#: ____________________

cc: Credit grantor, _____________________________

This information is of general interest only. Should you require legal advice seek the services of a professional or an attorney.

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When paying off collections accounts you need to be careful when sending in less money than what you owe to satisfy a debt. A creditor may come back later and want to get more money out of you. You need to get a release for the deficiency of the debt owed. You do not want a creditor coming back later to try and collect more money from you.

If You Settle A Debt For Less Than What You Owe Get A Release

The sample letter below will give you protection against a creditor coming back to you and asking for more money. The other tip is to add verbiage to back of the check that you are going to send that states that by the creditor endorsing the check that they are acknowledging that the debt is paid in full. Be sure to put the account number on the back of the check as well. If for whatever reason the creditor never gets a signed copy back to you, you have evidence that you have paid off the debt. The canceled check is now a release of the debt owed. It is a binding legal document that you can use to prove that you paid off the debt.

If the debt still shows on your credit report, all you need to do is to send a copy of the check to the credit bureau and they will have to remove it from your credit report.

Sample Letter Of A Release Of An Old Debt, copy and paste in into a Word Document.

Date: ______________

_______________________________

_______________________________

_______________________________

Attn: Customer Service

Name(s) on account: ____________________

Account #: _______________________

To Whom It May Concern:

Enclosed is a check for $___________ to pay the balance of the account. Cashing this check constitutes payment in full of the debt.

Regards,

________________________________________

Signature

Name: ____________________

Address: ____________________

____________________

Home phone#: ____________________

Email address: ____________________

This article is of general interest and is not considered legal advice.  Should you require legal advice please seek the services of a qualified professional or attorney.  California has different rules for releases.  Please do not use this form for California.

Is debt consolidation like doing a chapter 13 bankruptcy?

Years ago debt consolidation or consumer credit counseling programs were looked at by the credit bureaus as a chapter 13 bankruptcy. in the past if you were in a cccs program you would not be able to get a mortgage to buy a home. Now the rules for Fannie Mae and Freddie Mac have changed. You can now buy a home even though your are in a credit counseling program. Today there is more data to support that being in a debt consolidation program has no major impact in a persons ability to repay a debt than a consumer that is not in a cccs program. There is no longer any distinction that a person in a credit counseling is less likely to repay a debt vs. someone that is not in a cccs program.

Is debt settlement better than filing a chapter 13 bankruptcy?

If you are unable to make your credit card payments and a debt consolidation will not give you any financial relief, you may want to consider a credit card debt settlement program. Debt settlement is only for severe financial crisis and not just to get out of paying your bills.

Will my credit be affected by doing a negotiation settlement program?

You will have nothing on your credit report to show that you did anything. This is unlike filing a bankruptcy which will stay on your credit report for up to ten years. Typically when someone is considering a debt settlement program their credit has already been negatively impacted due to late payments or credit card accounts being in collections. In a debt settlement program you credit will improve as you pay off the unpaid collection accounts. It is a process and it may take a few months before your score will go up.

Bankruptcy should be your last option to get out of debt

If you can afford to pay of 40-60 percent of you debt balances and can commit to repayment over a four year period, debt negotiation may be an option for you. Call toll free 1-888-368-6668 for a debt review to see if debt negotiation is right for you.

Debt Negotiation is an alternative to bankruptcy

This information is of general interest. Should you require legal advice seek out a financial adviser or attorney.