Receiving a notice about a debt you don’t recognize can be frustrating and stressful.
Fortunately, Maryland state law and federal protections provide steps you can take to dispute a debt that you believe is not yours.
Understand your rights under the law
Under the Fair Debt Collection Practices Act (FDCPA), debt collectors must provide clear information about the debt, including the creditor’s name, the amount owed, and your rights to dispute the debt. Maryland law also requires collectors to follow fair practices, ensuring consumers are not harassed or misled.
Request debt validation
The first step is to request validation of the debt. Within 30 days of receiving a debt notice, send a written request to the collector asking for verification. This stops collection efforts until the collector provides proof that the debt is valid and belongs to you. Keep a copy of your request and send it by certified mail for tracking.
Check for errors or identity theft
Sometimes, errors in records or cases of identity theft can lead to debt collection notices for debts that are not yours. Review the debt validation documents for inaccuracies, such as incorrect names, amounts, or account numbers. If you suspect identity theft, report it immediately to the Federal Trade Commission (FTC) and place a fraud alert on your credit report.
Send a dispute letter
If the debt is not yours, draft a formal dispute letter explaining why you believe the debt is invalid. Include any supporting evidence, such as receipts or prior correspondence. Maryland law requires collectors to cease collection efforts while investigating your dispute.
Monitor your credit report
Debts that are not yours can still impact your credit score. Check your credit report regularly to ensure the disputed debt is not listed. Maryland residents can get free credit reports annually through AnnualCreditReport.com.
Protecting your financial future
By disputing debts promptly and following the proper steps, you can safeguard your financial record and resolve inaccuracies quickly. Understanding your rights is key to staying in control of your financial well-being.