The dispute process isn’t working for consumers – this is how we solve it

By on December 21st, 2015 in Compliance, Industry Insights

TrueAccord has been refining the debt dispute process since our inception in 2013. Offering digital disputes streamlines the conversation between consumers and collectors while also reducing compliance risk. Engagement of consumers in debt-related discussions have decreased complaints quickly leading conversations into debt resolution.

Read the excerpt and download the whitepaper for free.

Consumers who owe debts are often confused, angry and scared – sometimes unaware of the full details of what they owe and to whom. Though the FDCPA was written to protect the average American consumer, aspects of it, including the mini Miranda and debt validation notice are written in formal legalese. As a result, consumers filing a formal debt dispute tend to skip over reading the information or misunderstand the language, leading them to miss remedies immediately available to them. For example, consumers often miss the allotted 30-day dispute window after the initial communication, during which time they can dispute the debt, while asking for additional verification.

Even if consumers respond within the 30-day window, the actual dispute process is frustrating. It requires writing, printing and mailing a letter in a time when most households don’t have printers, envelopes or stamps handy. Additionally, it often requires letter tracking which imposes additional complexity and charges on an already indebted consumer. Finally, when (often weeks or months later) the requested information arrives, it’s frequently incomplete or confusing; leaving the consumer unsure of how to proceed. This uncertainty may leave the consumer in a netherworld, where they might still be responsible for the debt, but the collector has stopped contacting them while they continue with verification. While this bureaucratic process is taking place, the debt might be resold or the consumer may have moved. Both of these instances can cause this process to play out all over again in a year’s time.

The back-and-forth of this frustrating process can be alleviated by the digital dispute. Read why digital disputes are better for both consumers and creditors in our FREE eDisputes white paper.

Leave a Reply

Your email address will not be published. Required fields are marked *