Collections Dispute

A collections dispute occurs when a borrower challenges the accuracy or legitimacy of a debt that has been sent to a collection agency. This can happen for a variety of reasons, such as billing errors, fraud, or discrepancies in the amount owed. The dispute process typically involves the borrower contacting the creditor or collection agency to resolve the issue, often through providing evidence or requesting verification of the debt. Resolving a collections dispute may involve correcting the records, removing the debt from the borrower’s credit report, or negotiating a payment arrangement.