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Debt Self-Help Center

Do It Yourself
HIGHLIGHTS
  • Pull your credit report regularly to identify any errors.
  • Dispute an inaccurate debt amount with a debt dispute letter.
  • Stop collection calls with a cease and desist letter.

Tools and Knowledge to Get Debt Free on Your Own

This free Debt Portal has been created to help you solve debt problems, from validation letters to credit repair forms. Bills.com’s “Debt Do It Yourself Center” will put you in the driver’s seat to solve your debt problems on your own for free.

Disputing a Debt with a Collector

Under Federal law, you have the right to request documentation proving that you actually owe the debt being claimed by a collector. If you have any doubts as to the validity of a debt being asked to pay, you can dispute the debt in writing (this process is also called “requesting validation”). Once you have notified the collection agency of your dispute, it is required to cease all collection activity until it has responded to your request by providing documentary evidence, such as a signed credit agreement, demonstrating that you are the person who is responsible for the debt. Below are three letters which you can use to help you in disputing your debt with a collection agency.

Debt Dispute Letter

If you receive a call or letter from a collection agency for a debt that you don’t think you owe, you can send the agency this letter to put it on notice that you dispute the validity of the debt and that you are demanding that the agency provide proof that you are responsible for paying it.

Notice of Insufficient Validation

Frequently, collectors will respond to a request for validation with nothing more than a computer printout of the balance owed. Generally speaking, this is not sufficient proof of the debt. If you receive a response to the first letter which you think is insufficient, you can use this letter to put the creditor on notice that it has not satisfied its obligations to provide proof of the debt.

Failure to Validate Debt

If you do not receive a response to your debt dispute letter within a reasonable time (usually 30-60 days), or if the creditor continues its collection efforts without validating the debt, you can use this letter to notify the collector that it is legally required to stop its collection activity against you. Having sent the debt dispute, and following up with this letter, may put you in a better position if the creditor refuses to stop its collection efforts and you are forced to file a complaint with the FTC, your state Attorney General’s office, or even to file a lawsuit against the collector for violation of the Fair Debt Collections Practices Act (FDCPA).

Cease and Desist (C&D) Letters

These are letters which you can use if you wish to stop a debt collector from calling you. The first thing to remember is that the federal law (FDCPA) which requires debt collectors to stop calling you if you make such a request in writing, only applies to third-party debt collectors. (Some states have their own version of the FDCPA, which could extend stronger protections than the federal version.) If you owe money to CitiBank, and CitiBank is calling you directly, this letter may not be able to stop those calls. However, some states have passed laws that extend these federal protections to creditors. Also, many creditors will abide by such requests, not because they are legally required to do so in all states, but because they do not want to violate the law in error and want to maintain a positive public image.

Cease Communication Notice

The Cease Communication Demand letter is a more general letter, designed to stop all collection calls.

Work Harassment Letter

This letter is specifically targeted to collectors who are calling you at work, which are a particular problem, as some collectors will make multiple calls to a consumer’s workplace in an effort to shame or irritate the consumer into paying the debt. I recommend that you use these letters sparingly and only when needed; there is no need to send a cease communication demand to every collector who calls, but you should know that you have this option if a collector’s calls become harassing or abusive.

Pay for Delete Letter

A “pay for delete” letter is an agreement between you and the creditor or collection agency. You agree to pay a debt that is listed on your credit report in exchange for the creditor or collection agency promising to delete the entry from your credit reports.

Credit Repair - Dispute Listing

We strongly encourage consumers to pull a copy of their credit reports from all three major U.S. credit bureaus — Equifax, Experian, and TransUnion — at least once each year. It is important that you review your credit reports on a regular basis, as credit reports are notoriously inaccurate and often contain derogatory information about accounts that you never opened. This erroneous information can cost you thousands of dollars in the form of higher interest rates and reduced access to lower cost forms of credit. Reviewing your reports will also help you find out if you have been the victim of identity theft, as you will be able to see if any large credit transactions have taken place about which you were unaware. If you find any erroneous information on your credit reports, you have the right under federal law (the Fair Credit Reporting Act) to dispute the debt. You may order copies of your credit reports, free of charge, through AnnualCreditReport.com.

Comments (123)


Joshua S.
Stafford, VA  |  May 04, 2012
I co-signed on a motorcycle with my ex-wife back in 2008 and this past December she casually tells me that it's been repossessed. I have been working hard to square away all my debt and then this happens. I never got a call or ANY communication from the creditor (or her) about the delinquency of the account. Is there any way I can dispute this repossession?
Bills.com
May 04, 2012
While you are within your rights to dispute anything that appears on your credit report, accurate information will remain. Though it is not fair that you did not get any notice, as a responsible party to the loan, the repossession and late payment history will not be removed by disputing. You can choose to make a statement that will be included on your credit report. You can also submit a letter of explanation to any lender that questions why this appears on your report.

It may be possible to negotiate a pay-for-delete with the lender, if you are willing to pay off in full or are able negotiate a settlement on the deficiency balance. Remember, in addition to the damage to your credit, you are subject to collection efforts for any balance that remains.
Russ S.
Philadelphia, PA  |  April 20, 2012
It's been almost seven years since my first delinquency on five credit cards all equaling less than $10K. If I settle with the companies now, will it improve my credit score enough? Or should I wait until it's been 8 years and demand they be removed from my score?
Bills.com
April 20, 2012
Under the FCRA, at 7½-years plus one day the credit reporting agencies must remove the derogatories from your credit report, so a pay for delete would be a moot point if you negotiate for a pay-for-delete after that time. If you negotiate a pay-for-delete in the months leading up to the 7½-year date, you probably will not be doing much to help your credit score. See the Bills.com resource Short Sale, Foreclosure & Your Credit Score to learn more about the time-to-recovery on FICO scores.

My advice?
  • Wait until after each of the accounts you mentioned rolls off your credit report. As each one rolls off, negotiate a settlement to resolve the debts permanently. Start your negotiations at 10 cents on the dollar.
  • Monitor your credit report to make sure an unscrupulous collection agent does not attempt to re-age an account to keep it on your credit report.
  • Focus on creating positive activity on your credit report. In other words, pay your debts on time, and keep your account utilization low. (Do not max-out any credit cards you may have.)
Amanda H.
Hinesville, GA  |  April 11, 2012
Hey Bill, we are trying to resolved/figure out what to do about a debt to Wells Fargo that was recently sent to a debt collector. The issue we are having is that the debt is for the remaining loss on a repossessed vehicle, that was wrongly repossessed. My husband had been missing payments (this was before we were married), but then enlisted in the military. Prior to leaving for basic training, he talked with a Wells Fargo representative and informed him that he was leaving for the military. Under SCRA policy, military members cannot have vehicles repossessed, and are also granted a maximum of a 6% interest rate. His car was repossessed a few days after he left for training, and the amount still owed since has been incurring a very high rate of interest. My question is, is this debt even valid? The amount that the collection agency is attempting to collect is more that it should be because of the high interest rate, if they should even be collecting at all because of the wrongful repossession. Thank you so much!
Bills.com
April 11, 2012
Your spouse should consult with his unit's JAG office about this apparent violation of the SCRA.
Daryan J.
Shiloh, IL  |  April 09, 2012
Good Afternoon Bill: I recently sent a Debt Validation letter to the creditor handling my account. They sent back information saying I owe one amount, let's call X and say I owe Y. However, none of the papers they sent me describe how I owe the amount Y. Should I send a failure to validate response or a pay for delete letter on the amount X?
Bills.com
April 09, 2012
If you owe a creditor money then a debt validation letter is not necessary. You can negotiate a settlement, including a pay for delete. You should start your negotiations for less than what you owe. If the company is asking for more than you believe you owe, then demand a detailed accounting of your bill. Often there are many late fees and charges added on.
Mike M.
Somerville, MA  |  April 07, 2012
I recently contacted a collection agency to verify a debt. They couldn't verify the debt, so it was removed from my credit report. Then, a few weeks later, I get another letter from a different collection agency trying to collect the same debt. Can they do this? Should I send another verification letter? Thanks!
Bills.com
April 07, 2012
Yes, send another debt validation letter. Repeat this step for all future collection agencies that buy your collection account.
Rick L.
Pittsburgh, PA  |  April 06, 2012
What use is pay for delete? I understand the newest "thing" in American business, is to buy charged off, or partially paid off bills for pennies on the dollar, and then harass the heck out of the "debtor" for these old debts, whether valid or not. My question is, what about "pay to pull" agreements, where the debtor charges off the debt, if the debtor pays an agreed to lower amount. What keeps THESE from being sold to debt collectors at some future date?
Bills.com
April 06, 2012
The plain language in the pay-for-delete contract the two parties sign. Let's say you borrow $100 from me to tide you over to your next payday. When payday rolls around, you say, "Bill, I can give you $95. It's all I can afford. Will you accept that to square our deal?" If I say, "Yes, sure, $95 is fine," I cannot return to you in six months and say, "Hey, what about the $5 you owe me?" We reached what is called in law an accord and satisfaction for the debt. My expecting another $5 is contrary to our accord and satisfaction for the debt.

It would not surprise me unscrupulous debt collectors would buy and sell settled debt. However, the fact such a market exists does not make the previously settled debts valid or void their settlement agreements.
Di W.
New York, NY  |  April 02, 2012
I was initially contacted by a debt collector re a debt that's not mine (borrower has the same name but everything else is wrong), I made the error of speaking to them trying to clear things up, and leaked some personal information. They somehow got a hold of my SSN (I only gave them the last four digit once trying to show them that I am not the borrower), and even though they have finally realized their mistake and stopped contacting me, they have reported this wrong debt to my credit report already (only Equifax). The same person who bought that debt also borrowed from another company, now both debt are on my credit report. I have spoke to representatives from both companies directly, and both verified that they can not find an account under my SSN, yet when I disputed the charge with Equifax, Equifax came back and said all information is verified correctly - SSN, birthday, address, everything. My question is, what do I do next? How can they verify my information when the people I talked to do not have an account under my SSN? The creditor said I need to dispute with them directly, but I am afraid to send in any information in fear that they might falsified the debt and really put it on me now, any suggestions you might have would be greatly appreciate it.
Bills.com
April 03, 2012
You face two issues:
  1. Legal liability for the debt
  2. The credit reporting agencies reporting false information

You seem to have evidence in the form of statements and perhaps documents from the original creditor and/or collection agents indicating you are not the debtor they are looking for. Keep in mind this is a separate issue from your second issue.

Your second issue is tougher. Essentially, the credit reporting agencies have no oversight. When a credit reporting agency publishes incorrect information about a consumer, that consumer can file a dispute with the agency. However, if the credit reporting agency does not believe the consumer, the consumer has only two options — grin and bear it or consult with a lawyer to file a lawsuit for libel against the credit reporting agency.

Here, you mentioned the original creditor agreed to help you sort out this mess, but you are concerned it will use your personal contact information to further perpetuate this case of mistaken identity. I suggest you consult with a lawyer to help you draft a letter to the original creditor, with a CC to the legal departments of the credit reporting agencies asking all parties to remove the incorrect information from your credit report. Ask your lawyer to include gentle, but firm language in the letter explaining that if this matter is not resolved fairly you will have no choice but to review your options for filing an action against the creditor and the credit reporting agency for violating the Fair Credit Reporting Act.

In the meantime, file a complaint with the FTC. This may not result in immediate relief to you, but if enough people complain about the credit reporting agency's behavior, the FTC may take action.

Kristina F.
Spring, TX  |  February 27, 2012
Original creditor (HSBC) charges off account. They sold account to another company (MCM). Both are on credit file reporting as A charge off. Is this legal since it the same account being Reported twice?
Bills.com
February 27, 2012
What you described should not be allowed by the FCRA, but it is. Dispute the earlier derogatory.
Avatar
Emilia K.
Bass River Twp, NJ  |  March 10, 2012
Why delete the older one (HSBC) & not the newer one (MCM)? If the clock is ticking on the debt being removed from your credit report within a certain time frame, wouldn't you want it to start ticking at the start of the first debt??
Bills.com
March 12, 2012
The older creditor (HSBC), has no right to collect the debt, and will most likely not respond when the consumer disputes the derogatory with the credit reporting agencies. However, if HSBC is the original creditor, it may respond.

The clock ticking you referred to is, I infer, the 7½-year clock that determines how long a debt can appear on a credit report. Under the FCRA the 7½-year clock starts at the date of first delinquency, and not any other date. The date of first delinquency is when the payment was due, but never arrived. The date of first delinquency is not any of the following:
  • Write-off date
  • First report to the credit reporting agencies
  • Sale or assignment of debt to collection agent
  • Settlement date

The original creditor and collection agencies may report the date of these events to the credit reporting agencies, but none of the events mentioned in our list restart the 7½-year clock.

Stephanie P.
Springville, UT  |  February 20, 2012
Hi Bill! We really appreciate your site. My husband and I are just able to start the settlement process after being delinquent for 2 years. Most of the accounts have been assigned to collection companies. There are about 5 accounts we are trying to settle with larger balances (ranging from $3,000 -$11,000). Most of them have made a settlement offer of %50 off. One, (the $11,000 debt) has made an offer of about %70 off. We plan to use your "Pay for Delete" form. Is this a good place to start? At what percentage should we make our offer for? How reasonable are collection companies with deleting accounts when an offer is on the table? If the collection company agrees to deleting the debt, will I still have the report from the Original Debtor (i.e. American Express) prior to them selling the debt to the collection department? We would appreciate any help you could give us in this process. Thank you.
Bills.com
February 22, 2012
There is no set percentage that creditors agree to settle delinquent accounts. The settlement offers you are receiving seem reasonable. 70% off of an $11,000 debt is quite good. A general rule is to start low in a negotiation, as you can always increase your offer.

Creditors may nor may not be willing to delete the accounts. You have nothing to lose by trying for a pay for delete. Sometimes, you can get a reluctant creditor to agree by offering a larger settlement, but be very careful about this, as any indication that you can pay more may be used against you.

If the debt has been sold to a third-party collector, the original creditor can continue to show the account as $0 balance and charged-off for 7½ years from the time of first delinquency. I believe if the collection agent is a contractor for the original creditor any agreement to delete the account will remove it entirely from the report.
Becky S.
Pacifica, CA  |  February 12, 2012
I just looked at my credit reports and there are several entries that are re-aged debt collector entries. The original accounts are on there too and are due to be dropped next year. What can I do to get the re-aged entries off of my report?
Bills.com
February 13, 2012
To get the re-aged entries off your report, you will want to dispute those entries. I recommend that you read the Bills.com article re-aging debt. You will find useful information as well as instructions on how to dispute those items.
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