September 10, 2010

• Fighting Debt Collectors, Pt.3
     Become proactive.

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  There is always that possibility that the debt collection agency has made an honest mistake. For example: If your name is John Smith, the chances of there being another credit cardholder under the name of John Smith, it highly probable. If your investigation finds that this has happened, you'll want to make sure that the error is properly fixed. Not only will it be important to notify the credit card company, but it is also essential that you notify the three main credit reporting bureaus, TransUnion, Experian, and Equifax to report the error. When notifying the lender, be sure to include proper documentation and accurate information so that the company can sufficiently correct its records. After reviewing your free annual credit report, if the error shows up on the report, you can easily contest the credit card debt by completing a form and submitting it online. Additional information on reporting errors can be found at www.ftc.gov

  Become familiar with the provisions of the Fair Debt Collection Practices Act (FDCPA) so that you'll have a better understanding of your protection against all credit card and other debt collectors. The law includes a provision that debt collectors are prohibited from making false claims against cardholders and that they must investigate any dispute filed by a credit cardholder. Contact the Federal Trade Commission immediately if the debt collector does not follow the law. Furthermore, also contact the Better Business Bureau and file a complaint with them as well against the debt collection agency.

  Of course, being proactive is always the best defense for any credit cardholder wanting to protect themselves from identity and card theft. You can be proactive by viewing your free annual credit report and looking for any suspicious activity. If you should see something that looks strange or that is incorrectly reported, notify the agency immediately. You can access your free report online by visiting www.annualcreditreport.com.

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