subject: How to Resolve a Credit Account Dispute [print this page] How to Resolve a Credit Account Dispute How to Resolve a Credit Account Dispute
How to Resolve a Credit Account Dispute
Have you ever had a dispute with a creditor on how much is owed? Your records indicate that you owe a lot less than the amount your creditor claims is owed. When you find your self in this situation there are several options you have to get this matter resolved.
First, you should contact the creditor in an effort to settle your account. When you contact them you should inform them that your records indicate you do not owe as much as they are claiming. You should offer to forward them a copy of all of your records that will substantiate your claim. If you spoke with a representative by telephone it would be in your best interest follow up with letter recapping your conversation. Once this information is obtained and reviewed most creditors will be willing to settle this dispute for a reasonable amount.
It is important to know that if an agreement is reached make sure you received something in writing indicating the amount and terms of the settlement. When you send them payment for the settlement amount make sure you write "Payed in Full" on the memo line of the check. The Uniform Commercial Code (UCC)provides protection to a debtee that writes those three words in the memo line of a check.
If you cannot reach an agreement send the creditor a check as a settlement offer. In the memo area on your check write "full and final payment" or "satisfaction in full." In the accompanying letter, you should reiterate that the enclosed check is being tendered as a complete satisfaction of any dispute or controversy existing between you and them, and that their depositing the check constitutes their agreement that the amount paid is a complete satisfaction of any dispute or controversy. Under the UCC if the creditor deposit or cash the check you may be relieved of the debt. In order to for this to work there must be a bona fide dispute about the amount is owed.
With so many unethical creditors around it is extremely important to document all correspondences you have with a creditor. Many creditors record telephone conversations so make sure to document the date, time, who you spoke with and the jest of the conversation. Learn more about UCC 3-311
