Debt Collection Disputes: How Industry Experts Are Solving Compliance Challenges

Understanding Debt Collection Disputes in Today’s Regulatory Landscape

In the ever-evolving world of consumer finance, debt collection disputes are among the most complex and litigated challenges faced by collection agencies, creditors, and compliance professionals. In a recent webinar hosted by Receivables Info, industry expert Sara Woggerman of ARM Compliance Business Solutions joined Katalina Dawson of Branding Arc to unpack the nuanced processes behind debt validation, compliance, and dispute procedures.

This content-rich webinar replay is designed to equip professionals with the knowledge needed to manage dispute processes effectively, protect consumers, and avoid costly regulatory pitfalls.

The Evolution of Debt Collection Disputes

Debt disputes are no longer limited to traditional mail or in-person interactions. Today, they span text messages, emails, online portals, and even chatbots. The FDCPA and FCRA provide overlapping but distinct legal frameworks, requiring organizations to adapt quickly.

“A dispute is a challenge to the character, amount, or accuracy of a debt, and it must be treated with urgency and care,” said Sara Woggerman.

Best Practices for Managing Disputes Across Channels

Today’s digital communication landscape demands a multi-channel intake strategy. Email, text, portal submissions, phone calls—they all qualify. Organizations should:

• Centralize all dispute intake points to prevent oversight
• Implement workflows that auto-freeze accounts upon dispute detection
• Audit voice analytics for dispute language detection

Valid Reasons for Debt Collection Disputes

Many disputes fall into predictable categories, including:

• Identity theft or fraud
• Coerced debt (domestic abuse, elder abuse, etc.)
• Incorrect balance or billing errors
• Already paid debts
• Wrong consumer (due to data mismatches or family name similarities)

Handling each of these scenarios requires a thoughtful, well-documented approach.

Addressing Chronic and Frivolous Disputes

Some consumers repeatedly submit disputes to delay collection efforts. Regulatory guidance permits:

• Frivolous dispute responses under FCRA
• Duplicative dispute dismissal under Reg F

However, organizations must issue proper notices within five days of deeming a dispute frivolous.

Actionable Takeaways for Compliance Teams

To remain compliant and proactive, organizations should:

• Maintain a detailed dispute log including timestamps, category, and resolution actions
• Implement 30-day resolution targets for all dispute types
• Create workflows that pause all outreach within hours of receiving a dispute
• Train teams on the difference between complaints, disputes, and cease-and-desist requests
• Leverage speech analytics and audit tools to detect verbal dispute triggers

Ready to protect your organization and improve your dispute resolution strategy? Watch the full Disputes Demystified webinar replay now on ReceivablesInfo.com and learn from the industry’s top experts.