How to Dispute a Debt Orally: What Consumers Need to Know

Disputing a debt doesn’t have to be a formal or complicated process. Recent legal decisions, including Lawson v. Jefferson Capital Systems, LLC, No. 2:23-cv-05124-JHS, (E.D. Pa. Aug. 13, 2024) provide critical guidance on how consumers can protect their rights under the Fair Debt Collection Practices Act (FDCPA) by disputing debts both orally and in writing.

In Lawson, the court reaffirmed that under Section 1692e(8) of the FDCPA, a debt dispute can be communicated orally. Judge Joel H. Slomsky denied the defendant’s motion to dismiss, emphasizing that the plaintiff’s statement during a phone call—“the balance seems to be a little off”—was sufficient to constitute a dispute. The court explained that the FDCPA does not require disputes to be valid or reasonable. A consumer simply needs to make it clear to the debt collector that they are contesting the debt. Even a brief oral statement, such as in a telephone conversation, is enough to place the debt collector on notice of the dispute.

This aligns with the Third Circuit’s ruling in Riccio v. Sentry Credit, Inc., 954 F.3d 582 (3d Cir. 2020), where the court found that the plain language of the FDCPA allows disputes to be communicated orally, without requiring written documentation. The court’s reasoning underscores that the term “dispute” applies broadly to both verbal and written communications.

Consumers can use this knowledge to their advantage. For example, you can dispute a debt during a telephone call with a collector by saying something like, “I don’t believe this balance is correct,” or by replying to a text message stating that you dispute the debt. This simple action obligates the collector to mark the debt as disputed when reporting it to credit bureaus.

Knowing your rights is key to protecting your financial future. If you believe a debt collector has violated the FDCPA, consider seeking legal advice.

Here are ten phrases consumers can use to orally dispute a debt during a telephone conversation with a debt collector. If the debt collector fails to update the consumer’s credit report with the dispute, the consumer may be eligible to receive $1,000 in damages under the Fair Debt Collection Practices Act (FDCPA):

Oral Dispute (Telephone):

1. I am disputing this debt because I don’t recognize it.
2. The amount you’re claiming doesn’t seem correct, so I’m disputing it.
3. I believe this debt is not valid, and I would like validation.
4. This debt is not mine, and I am disputing it.
5. I don’t think this account is accurate, so I am disputing it.
6. There seems to be a mistake with this debt, and I dispute it.
7. I want to make it clear that I am disputing this debt.
8. I’m calling to dispute the validity of the debt you’ve contacted me about.
9. I disagree with the balance on this account and am disputing it.
10. I am disputing this debt and asking you to confirm its accuracy and ownership.”

Why Oral Disputes Are Important:

Under the FDCPA, debt collectors must report a debt as disputed if a consumer disputes it, even orally. If they fail to do so and continue to report the debt without marking it as disputed, they violate Section 1692e(8) of the FDCPA.

Consumers who experience this violation may be eligible to receive $1,000 in statutory damages, along with additional compensation for attorney’s fees and costs. Always document the date and time of your call and note the representative’s name to strengthen your case.

Key Evidentiary Tips for Oral Disputes:

Have a Witness Present: Always make your oral dispute in front of a friend or family member. They can later sign an affidavit confirming that you disputed the debt. This is crucial because debt collectors often claim consumers never disputed a debt. A witness can provide irrefutable evidence, guaranteeing a stronger case

Document Everything: If you dispute a debt via text message or email, take a screenshot or save a copy of your communication. This will serve as tangible evidence of your dispute.

By following these steps and keeping thorough records, you can protect your rights and hold debt collectors accountable if they fail to properly report a disputed debt on your credit report.