Disputing Debt FAQ

To dispute a debt in California, you should send a written dispute letter to the debt collector within 30 days of receiving their initial validation notice. Under both the federal FDCPA and California Rosenthal Act, your dispute triggers specific legal obligations for the collector. Your letter should clearly state that you dispute the debt and request verification. Send the letter via certified mail with return receipt requested to create proof of delivery.

In your dispute, you can challenge the debt's validity, the amount claimed, or assert that you are not the person who owes the debt. Once the collector receives your written dispute, they must cease all collection activities until they provide adequate verification of the debt. This means no more calls, letters, or other collection efforts until they prove the debt is valid and that you owe it. If the collector continues collection activity without providing verification, they violate both state and federal law. Keep copies of all correspondence and the certified mail receipt as evidence. Even if you dispute after 30 days, the collector should still investigate, though they're not legally required to stop collection during that investigation.

An effective debt dispute letter should include several key elements to maximize your legal protection. Start with your name, address, and account number (if known), along with the collector's name and address. Clearly state that you are disputing the debt pursuant to 15 U.S.C. section 1692g and California Civil Code section 1788.14. Specify the reason for your dispute: you don't recognize the debt, the amount is incorrect, you believe it's not your debt, the debt was already paid, or the statute of limitations has expired.

Request that the collector provide verification of the debt including the original creditor's name, the original account agreement bearing your signature, a complete payment history, and proof that they have authority to collect. Include a statement that you are invoking your rights under the Rosenthal Act and FDCPA. Demand that they cease all collection activity until verification is provided. Never admit the debt is yours or offer to pay any amount in the dispute letter. Sign and date the letter, and keep a copy for your records. Send via certified mail with return receipt to prove delivery date.

After receiving your written dispute, the debt collector must take specific actions required by law. If your dispute was sent within 30 days of their initial contact, the collector must immediately cease all collection activities. Under 15 U.S.C. section 1692g(b) and California Civil Code section 1788.14, they cannot call, send letters, report to credit bureaus, or take any action to collect until they provide adequate verification.

The collector must then conduct a reasonable investigation into your dispute and, if they wish to continue collecting, must mail you verification of the debt. This verification should include documentation from the original creditor showing the debt is valid and that you are the responsible party. If the collector cannot verify the debt, they should cease collection and may need to delete any credit reporting. Many disputed debts are never verified because collectors, especially debt buyers, often lack the original documentation. If the collector continues collection activity without verifying, you have grounds for a lawsuit seeking statutory damages, actual damages, and attorney's fees. Document the timeline carefully: note when you sent your dispute and any collection activity that occurred afterward.

Yes, you can and should dispute debts that have been reported to credit bureaus. You have two parallel dispute processes available. First, you can dispute directly with the debt collector under the FDCPA and Rosenthal Act as described above. Second, you can dispute the credit bureau listing directly with Equifax, Experian, and TransUnion under the Fair Credit Reporting Act (FCRA).

When you dispute with the credit bureaus, they must investigate within 30 days and either verify, correct, or delete the information. The bureau will contact the debt collector (the furnisher) who must conduct their own reasonable investigation. If the collector cannot verify the debt, the bureau must delete it from your credit report. Under the FCRA, if a debt collector reports information they know or should know is inaccurate, or fails to investigate your dispute properly, you can sue them for damages. It's often strategic to pursue both dispute processes simultaneously. Send your dispute letter to the collector and also file online disputes with all three credit bureaus. This creates multiple legal obligations for the collector and increases pressure to resolve invalid debts.

If a debt collector ignores your dispute letter and continues collection activities without providing verification, they have violated both the federal FDCPA and California Rosenthal Act. This violation entitles you to pursue legal remedies including statutory damages of $100 to $1,000 under the Rosenthal Act, up to $1,000 under the FDCPA for third-party collectors, actual damages for any harm suffered, and attorney's fees and costs.

Document every collection contact that occurs after you sent your dispute, including calls, letters, voicemails, and credit reporting. Your certified mail receipt proves when the collector received your dispute. If they continued collection without verifying, each contact may constitute a separate violation. Consult with a consumer rights attorney who handles FDCPA cases; most offer free consultations and work on contingency. You can also file complaints with the California Attorney General, the Consumer Financial Protection Bureau, and the Federal Trade Commission. Many collectors settle these cases quickly rather than face litigation. The combination of documentation (your dispute letter and certified mail receipt) and continued collection activity creates a strong legal claim.

Under federal law, you have 30 days from receiving the debt collector's initial validation notice to dispute the debt and trigger the collector's obligation to cease collection until verification is provided. This 30-day period is critical because disputes within this window carry the strongest legal protections. The collector's initial notice must inform you of this 30-day right.

However, you can dispute a debt at any time; the 30-day deadline only affects whether the collector must automatically stop collection during the verification process. Even after 30 days, sending a dispute letter is valuable because it creates a record challenging the debt's validity, puts the collector on notice of potential inaccuracies, may prompt them to verify anyway, and strengthens your position if they later sue you. Under California's Rosenthal Act, your dispute rights exist regardless of timing. For credit bureau disputes under the FCRA, there's no specific deadline, and you can dispute at any time the debt appears on your credit report. The key is to dispute promptly once you become aware of a debt you believe is invalid, even if more than 30 days have passed since initial contact.

While often used interchangeably, disputing and requesting validation have distinct legal meanings and consequences. A debt dispute is your assertion that the debt is not valid, not yours, already paid, or incorrect in amount. When you dispute, you're challenging the debt's legitimacy. A validation request asks the collector to prove the debt exists and that you owe it, without necessarily asserting the debt is invalid. Both trigger the collector's obligation to verify the debt, but the legal standards may differ slightly.

In practice, the strongest approach combines both: "I dispute this debt and request validation." This clearly establishes that you don't accept the debt as valid while requiring proof. Under 15 U.S.C. section 1692g, requesting validation within 30 days stops collection until verification is provided. The Rosenthal Act incorporates these federal requirements under Civil Code section 1788.17. When responding to the collector's initial notice, explicitly state both that you dispute the debt AND that you request verification/validation. This dual approach maximizes your legal protection and puts the burden on the collector to prove their case before continuing any collection efforts.

Simply disputing a debt does NOT restart the statute of limitations in California. The statute of limitations is the time period during which a creditor can sue you to collect a debt. Once this period expires, the debt becomes "time-barred," meaning the collector cannot successfully sue you. The statute of limitations can be restarted (or "tolled") in limited circumstances, primarily by making a payment on the debt or making a clear written acknowledgment that you owe the debt.

A dispute letter that challenges the debt's validity or requests verification does not constitute an acknowledgment that you owe the debt, and therefore does not restart the limitations period. This is why dispute letters should never admit you owe anything. Phrases like "I dispute this alleged debt" or "I do not believe I owe this debt" are safe. Avoid language like "I can't afford to pay this debt right now" which could be construed as acknowledging the obligation. If you believe a debt may be time-barred, your dispute letter can specifically state: "I dispute this debt and believe it is beyond the applicable statute of limitations." Request that the collector provide documentation showing when the debt allegedly became due.

The definition of "adequate verification" has been subject to litigation, but courts generally require more than a simple statement that you owe the debt. At minimum, verification should include documentation from the original creditor showing the debt's origin, the original account agreement or signed contract, an itemized accounting of how the amount was calculated including principal, interest, and fees, proof that the debt collector has authority to collect, and evidence connecting you to the debt.

Many debt buyers purchase debts in bulk with minimal documentation and cannot provide verification beyond a spreadsheet line item. California courts have increasingly required meaningful verification, not just a computer printout from the collector's own system. If a collector sends what they claim is verification but it's merely their own internal records without original creditor documentation, you can challenge this as inadequate. The collector's failure to provide meaningful verification doesn't make the debt disappear, but it significantly weakens their ability to collect and may provide grounds for a lawsuit if they continue collection activity. If you receive inadequate verification, send a follow-up letter explaining why the documents provided are insufficient and requesting proper documentation.

Whether to dispute a debt you know is valid depends on your specific circumstances and goals. Disputing a valid debt to buy time or as a negotiating tactic raises ethical questions, but from a purely legal standpoint, you have the right to request verification of any debt. Many consumers dispute valid debts because the amount claimed is incorrect, the debt has been sold multiple times with fees added improperly, they want documentation of exactly what they owe, the statute of limitations may have expired, or they need time to arrange payment or consult an attorney.

If you dispute a valid debt, be truthful in your letter. Instead of falsely claiming you don't owe it, you can state: "I request verification of this debt including documentation of the amount claimed and proof of your authority to collect." This exercises your legal rights without making false statements. Consider your alternatives: negotiating a settlement for less than the full amount, setting up a payment plan, exploring whether bankruptcy might be appropriate, or consulting with a nonprofit credit counseling agency. Whatever you decide, understanding your legal rights helps you make informed decisions about how to handle the debt.