Being hounded for a debt can be stressful enough, but imagine being hounded for a debt that you don’t owe. If you’ve got a common name, like Smith or Jones, this is something for which you should be especially watchful.
According to a column by Kathy M. Kristof over at the Los Angeles Times, there is even a name for it: debt tagging. If you think a creditor is coming after you for a debt you don’t owe there are a few things you can do.
Ask the creditor to verify the debt. The Fair Debt Collection Practices Act requires he collection company to provide you with the precise amount owed, the company to which it’s owed and information about when the debt was incurred. You can ask for the original loan application, a payment history and other documentation.
Dispute the debt in writing. Send the collection company a letter stating that while your name is John Doe, you are not the John Doe that owes the debt it is trying to collect. Point out any discrepancies that might exist between you and the person the collection company is looking for, such as middle name or address. Make sure to include a request not to be contacted again. A request for no contact by a collection agency must be in writing.
While these are simple steps, they may not stop an unscrupulous collection company from coming after you. They may not think that you’ll fight them if they take the debt to court for a judgment. If you get served a suit for a wrongful debt, make sure you respond. Don’t think that the collection company will not get a judgment just because you ignore it. Better yet, think about contacting a lawyer to help you defend the lawsuit.
You can read the rest of Kristof’s column here.