Legal Question in Credit and Debt Law in Maryland
How to dispute debt to collection agency
Received notice from a debt collector that I owe money for unpaid rent. This is the first notice I received from the creditor - I had no idea that I had not fulfilled my obligations with the landlord (I left on good terms with them almost 2 years ago after agreeing to pay a fee for early termination of the lease which was paid in full). I requested a verification of debt from the creditor. The creditor informed me no judgement had been passed on the debt. I am very concerned about my credit rating being affected by this (I have outstanding credit). Is it worth fighting / waiting for a judgement (is this an automatic proceeding?) or should I just pay the amount?
2 Answers from Attorneys
Re: How to dispute debt to collection agency
You are correct with there being costs other than the amount of the debt (e.g., adverse effect upon your FICO - credit rating).
You have several options. Each should be pursued properly. Among your options are: you can contest the debt with the debt collector; or, you can wait until the matter is filed for a trial; or, you can attempt to work the debt out; or, you can pay the full amount claimed.
If you think you are going to pursue a work out then you should do so BEFORE an action for collection is filed. In any regard, it is important that your action be performed in a manner that protects your interests.
Re: How to dispute debt to collection agency
It sounds like you disputed the debt and the collector acknowledged your dispute. That is important. Whether you want to fight the alleged debt in court is up to you, and also depends on whether they actually file suit. Smaller amounts of money may not be worth filing suit for them.
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