Legal Question in Credit and Debt Law in Illinois

Re: Disputed Debt

Yes they can. The fact that you dispute it doesnt provide you with a shield if they believe the debt is vaild. You will have your chance to prove the validity of your position in court. In the mean time you also have the opportunity to negotiate a settlement with the attorney for the Company. They very well may wish to settle claims of this nature.

Re: Disputed Debt

Collection of debts by collection agencies is governed by the federal Fair Debt Collection Practices Act (the "Act"). Under the Act, you have 30 days within which to respond to a collection letter to dispute the debt, which must be done in writing. The collection letter sent to you by the collection agency should clearly and visibly state your rights in this regard.

If you dispute the debt, the collection agency must cease collection efforts for at least 30 days and must provide proof of the debt. Many times, this ends the collection efforts.

Also, the Act is very strict as to what a collection agency can and cannot do, and what is permissible in collection letters and what is not. An attorney experienced in debt collection could advise you as to whether the collection agency is in violation of the Act and, if so, your remedies against the collection agency.

Good luck.

-- Kenneth J. Ashman; [email protected]; www.lawyers.com/alo