Why Debt Disputes are Important

A debt dispute is the act of arguing, disagreeing, or questioning the balance. In cases where in credit card balance problems arise, it is important to dispute the debt in question, especially if certain things do not add up. However, note that disputing the balance won't just start and end with calling your creditor and denying you owe them money. All types of disputes require accurate timing and precise approaches. Getting the upper hand is the key to an effective debt dispute as it can help you avoid a possible credit card lawsuit. You can actually walk away with cleared debt or settle the balance at a much smaller sum than the original amount with the right approach.

One of the most common ways to raise a dispute is to question the balance by phone. However, note that verbal contention won't hold much weight in court unless your creditor chooses to file a credit card lawsuit against you. Your creditor can simply deny all these allegations and that's the end of that.

Another common ways to raise disputes is by sending debt verification letter. Debt verification letter requires the creditor to review the correct name and address of the debtor. However, please note that a correct name and address won't really do much to build your case. Debt verification letters will not protect you legally either because they do not require account validation process.

So what can you do to effectively raise a dispute against creditors? Sending a debt validation letter is considered as the most effective way to argue the debt. Unlike debt verification letter, the Fair Debt Collection Practices Act supports debt validation letter. Debt validation letters is set by law through the FDCPA to compel creditors, collection agencies, and junk debt buyers to present corroborative evidence and certified proof that the balance is indeed under the debtor's name, if the debtor sends a debt validation letter.

If the junk debt buyer or the creditor failed to completely certify your credit card account, they cannot go on collecting money from you. This shows that debt validation letters can help protect you from balance claims made by debt collectors and creditors. The fact is, debt validation letters are grueling requirements that creditors, more so for debt collectors, who cannot access important documents that could pin the debt under your name. Bottom line is, a well written debt validation letter could help creditors and junk debt buyers from collecting money, and eventually avoid credit card lawsuit altogether.