How to Write a Letter to a Collection Agency
After you’ve written a Round 1 letter to the credit bureaus, you may need to follow up with each collection agency individually.
When items are sent to collections by accident, you can write a credit dispute letter to a collection agency on your client’s behalf.
If a collection agency cannot prove the debt is valid and within the statute of limitations, they must report the item in question to the bureaus as under investigation.
Using a sample dispute letter to a collection agency can save you time and ensure clear, accurate correspondence when you contact these agencies on behalf of your client.
Read on to learn:
Why you should be sending letters to collection agencies
How to write an effective collection agency dispute letter
What these dispute letters can do for your credit repair clients
When to write a dispute letter to a collection agency
Your credit repair clients may approach you asking how to remove an item from a collection agency from their credit report.
Writing an effective dispute letter to a collection agency can begin an investigation and grant your clients some peace of mind, and often get the derogatory item removed from their credit report.
Common reasons to write a collection agency dispute letter for your clients:
Dispute the validity of a negative or inaccurate item on your client’s credit report
Correct any cases of mistaken identity that caused someone else’s debt to appear on your client’s credit report
Request removal of past debts your client already paid that remain on their report
What do I include in a collection agency dispute letter?
Specific details may vary for each collection agency dispute letter you write for your credit repair clients. In general, be sure to include:
Client’s information: The letter should be first-person (I, my) written as if by the client
Reason: Include an individual line and detailed description for each disputed item and why the client is disputing it
Reference relevant laws: Cite relevant sections from the Fair Credit Reporting Act FCRA) so collection agencies know they can only contact the creditor, not your client
Request for item(s) removal: Make your requests to the collection agency clear: 1) Cease debt collection (including all contact with client), 2) Verify the disputed item(s), and 3) Remove the disputed items or give detailed explanations and evidence for items not removed
Request for notification to credit reporting agencies: By law, the collection agency must notify any credit reporting agencies that: 1)There is an investigation of the disputed item(s), 2) The agency had prematurely reported these negative items before confirming them and 3) The credit bureaus should update your client’s credit report to remove the disputed items or at least reflect the ongoing dispute
