Should You Use A No Contract Letter To Remove Collections From Your Credit Report?

Last Updated: Nov 15, 2022

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If debt collectors start contacting you regarding a debt despite not signing a contract with them, you are not alone. Over 25% of Americans are dealing with third-party debt collectors at any given time. None of these consumers have signed contracts with the third party debt collectors.

The lack of an existing contract may lead consumers to believe they are not responsible for the debt and can justify it with a no contract debt collection dispute letter.

What Is A No Contract Dispute Letter?

Consumers surfing the web for solutions to resolving the debt collection will have come across the “no contract dispute” method. The concept entails disputing the debt obligation on the premise no contract had been signed between the debt collector and themselves. This would likely fail as an official dispute.

The reason this dispute lacks effectiveness is the debt remains obligated through the contract with the original lender. Therefore, it is possible for the original lender to sell your debt to a third party debt collector and your obligation will remain intact through the original contractual obligation.

For this reason a debt dispute based on the no contract method likely won’t work.

Should You Use A No Contract Dispute Letter?

The likelihood of success when relying on the no contract dispute letter suggests it is not worth attempting when trying to dispute a debt successfully.

Better Alternatives To A No Contract Dispute Letter

Consumers who require alternative solutions to the no contract dispute letter can consider the following alternatives most likely to produce successful results:

Request Validation Of The Debt

Requesting for the validation of the debt whenever you are contacted by a debt collection agency. They are obligated to investigate your dispute and determine whether the debt is legitimate or incorrectly reported, within 30 days of your verification request.

Dispute the Debt

You are entitled to dispute your debt even if you have received some form of verification thereof from the debt collectors. The Fair Credit Reporting Act requires your dispute be investigated and verified with the original creditor.

Consult An Attorney

Consumers can consult attorneys with experience in debt collection disputes to assist with the process and ensure it is done efficiently.

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Consult A Credit Repair Specialist

Consumers can also consult credit repair specialists like Credit Sage, who beyond controlling the dispute process will also ensure clients are guided to their best possible credit score.

Bottom line

The no contract dispute letter has very little substance to justify its use and various alternatives with higher success rates are available to consumers. Consumers struggling to manage their overall debt obligations and require assistance to get their credit score back on path are advised to consult credit repair specialists to ensure it is done in the best manner possible.

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