Last weekʻs tip was Collection agency contacts and tips to deal with them. That post discussed how to deal with collection agencies when the contact relates to a bill you incurred. What about those times when the bill doesn’t belong to you?
Many years ago, I was contacted by a collection agency about an unpaid bill for an ambulance call in Petaluma, CA. I must confess, I did not handle the situation well. I was angry that any company could make this kind of mistake. Iʻd driven through Petaluma a few times on the way to the wine country in Sonoma County, but had never stopped, let alone been picked up by ambulance or taken to a hospital.
Dealing with the collection agency was one thing (see last week’s post for tips on how to do this), but the unpaid bill was already on my credit. To keep my credit record clean, I needed to prove the debt wasn’t mine and get it removed from my credit report.
Tips to solve the “not my debt” problem
- Obtain copies of your credit reports from all three credit bureaus. This can be accomplished in one step by using the website annualcreditreport.com. You can also call 1-877-322-8228.
- Send a letter via certified mail to the affected credit bureaus explaining that the debt isn’t yours. A sample letter is located on the Federal Trade Commission website here. The credit bureau has thirty days in which to respond. Also, be sure to keep a copy of all correspondence to and from the credit bureau.
- If an erroneous debt isn’t removed within thirty days, you’ll need to escalate and possibly sue. This should be the very rare exception and you’ll want to be absolutely positive that the debt is not yours, but if it happens, find your state Attorney General in this list.
- Be aware that just because you say, “That is not my debt!” a credit bureau may choose to not remove the item from your record for legitimate reasons. If they deny your dispute, look for additional proof to support your claim. The best course of action is to provide as much documentation as possible up front, thereby avoiding a longer and more tedious process of investigation.
