Step 4: Dispute the debt with the furnisher.

The business that gives information about an unpaid debt to a consumer reporting agency is called a furnisher because it furnishes the information.

What is a furnisher?

In simple terms, a furnisher is a company that is providing information about an account to a consumer reporting agency. The company that is the furnisher is included with the account information in your credit report. The furnisher is often the lender or creditor. However, there are times that other companies are furnishing information about an account.

For example, if you have unpaid medical debt listed on your credit report or a debt owed to a landlord, it is likely that a debt collector will be the furnisher. In these cases, if you are going to dispute the debt, you will need to send your dispute letter to the debt collector, though it may be a good idea to provide a copy of the dispute to the hospital or landlord.

In other cases, a bank or other lender may sell an overdue account to a debt buyer. The debt buyer then becomes the owner of the debt. It is possible that both a debt buyer and the original lender report the account and they are both furnishers. In this case you would want to dispute with both the original lender and the debt buyer.

If you are successful in getting the consumer reporting agencies to block the coerced debt from showing up on your report, you should still dispute the debt with the furnisher. Disputing debts with the consumer reporting agencies and the furnishers reduces the chance that furnishers will later re-send false information about a coerced debt to a consumer reporting agency.

Though you can write dispute letters and send them on your own, it can be very helpful to have an attorney to assist you. To find a free or low-cost attorney, see our List of Domestic Abuse and Legal Resources.    

How you go about disputing the debt will depend on what kind of debt is in your name. There are many different types of debt that can be coerced. Some include:

• Credit cards;
• Medical debt;
• Auto loans/leases;
• Utilities;
• Housing (rental debt);
• Housing (mortgage/home equity loans);
• Payday loans;
• Tax debt;
• Bank account/debit accounts; and
• Student loans.

This is not a complete list. Other types of coerced debt exist.

Auto loan debt, home mortgage loans, student loans, and tax debt are all types of debt that probably require an attorney to negotiate and dispute with the furnisher. These debts will likely require a court order to completely remove your responsibility for paying the debts.

This guide will highlight the process for disputing some common debts that you can try to dispute on your own: credit card debt, utility debt, and telephone or cell phone debt. Much of this information was taken from the Federal Trade Commission’s guide Identity Theft: A Recovery Plan. Their guide also has additional information on how to dispute different types of debts with specific furnishers. 

Credit card debt

Credit card debt is the most clear-cut type of debt for a victim of identity theft to successfully dispute. It is also one of the most common types of coerced debt. There are procedures already in place to address unauthorized use. This procedure is only to be used when the credit card account is still owned by the credit card company and has not been sold to a debt buyer.  

After the debt is disputed, the credit card company must investigate the claim and must issue a conclusion of the investigation. If a victim disputes the debt under “unauthorized use,” the maximum liability to the victim is $50. However, if the person benefited from the use of what was charged to the credit card, that person will not qualify for the Act’s protections.

To dispute credit card debt, you can call or write to the credit card company. If you decide to call, you should:

• Call the fraud department of the credit card company.
• Explain that someone stole your identity.
• Ask the business to close the new account or remove the fraudulent charges.
• Ask the business to send you a letter confirming that the fraudulent charges and/or account are not yours; you are not liable for it; and it was removed from your credit report.
• Keep this letter and use it if the fraudulent account/charges appear on your credit report later on.

If you call it is very important to write down the name of the person you spoke with and the date and time of the conversation.

If you decide to write to the credit card company, you can use the Sample Form Letter for Disputing a Fraudulent Debt with a Furnisher to dispute the account. Send by certified mail, return receipt requested, and keep a copy for your records. Usually the credit card company will follow up with their own fraud affidavit for you to fill out. It is important to know that they cannot deny your dispute only because you do not have a police report.

You may need to contact an attorney to help you if you are unsuccessful in your dispute.

Utility debt

If someone used your information to get cable, electric, water, or other similar services, contact the service provider. Tell them that someone stole your identity and ask them to close the account. For additional help, contact the Public Utility Commission of Texas and explain the situation. Their numbers are 888-782-8477 or 512-936-7120.

Write down the name of the person you spoke with and the date and time of the conversation. You can also send a letter to dispute the fraudulent account. Sample Form Letter for Disputing a Fraudulent Debt with a Furnisher gives you a sample letter that you can use to dispute the account/charges.

Telephone debt

You can contact the National Consumer Telecom and Utilities Exchange and request your NCTUR Data Report, at 1-866-349-5185. Review the report for accounts you don’t recognize. The Data Report is a record of telecommunication, pay TV, and utility accounts reported by its exchange members, including information about your account history, unpaid accounts, and customer service applications.

Tell your service provider that you are the victim of identity theft. If the service provider doesn’t resolve the issue, file a complaint with the Federal Communications Commission or by calling 1-888-225-5322.

Write down the name of the person you spoke with and the date and time of the conversation. You can also send a letter to dispute the fraudulent account. Sample Form Letter for Disputing a Fraudulent Debt with a Furnisher gives you a sample letter that you can use to dispute the account/charges.

What other steps can I take to dispute my responsibility to pay the debt?

For certain types of debt, such as federal student loans, writing a dispute letter to the lender will not be enough to have your responsibility for paying the debt completely removed. You might need to file an identity theft claim in court under Chapter 521 of the Texas Business and Commerce Code to get a court order saying that you are not responsible for paying the debts. This filing will often require the help of an attorney. See List of Domestic Abuse and Legal Resources to find an attorney.