Can you dispute collections by saying no contract?

If you’re dealing with debt collectors, you may have heard you can remove collections with a no contract dispute letter. It’s a way of disputing collections on the theory that since your original debt was sold, it cancelled the contract & your obligation to pay.

Can a debt be enforced without a credit agreement?

An invalid credit agreement simply has no effect whereas an unenforceable agreement simply cannot be enforced until certain action has been taken. Once they do so it will become enforceable. Irredeemably unenforceable agreements are the ones which breach section 60 or section 65 of the Consumer Credit Act.

Is a sold debt enforceable?

Once your debt has been sold to a debt purchaser you owe them the money, not the original creditor. The debt purchaser must follow the same rules as your original creditor when they collect the debt, and you keep all the same legal rights.

What happens when a debt is sold to a collection agency?

What happens when a debt is sold to a collection agency? A ‘debt purchaser’ buys up debts to collect rather than chasing debts owned by other companies. The benefits of selling the debt are that the creditor usually has no more involvement in collecting it, and they get some money back straight away.

Can a collection agency add a contract to my credit report?

While you did not create a contract with the collection agency (unless you entered a new agreement to settle or pay the debt), the original creditor has the right to sell your original contract. This is what gives the collection agency the ability to add a debt to your credit report and pursue you for the outstanding debt

Is there a “no contract” loophole to get out of debt collections?

This time, it’s the “no contract” loophole that claims you can get out of paying debt collections. The myth comes from a comment left on a credit forum. “Don’t Pay Them a DIME!” is the post title. “If the original creditor sold your debt to a collection agency, they also wrote off your debt on their taxes…” this much is correct.

What happens if a debt collector does not respond to investigation?

The fact that the debt collector failed to respond to the investigation that makes the dispute successful, not the “no contract” claim. If a collector is actively collecting on your debt, they may verify the dispute with the credit bureau and the collection would stay on your credit report.