Can you dispute an unpaid balance after it was sold to a collection agency?
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TL;DR
- Borrowers have the right to dispute debts sold to collection agencies under the FDCPA.
- Collection agencies must send a validation notice within five days of initial contact, including the right to dispute within 30 days.
- A written dispute within 30 days requires the collector to stop collection activities until the debt is verified.
- If a debt cannot be validated by the collection agency, it becomes uncollectible.
- If a debt is valid, options like debt settlement, credit counseling, or debt consolidation can help manage repayment.