5 options to consider if your debt dispute is denied by a debt collector

CBS News

30-06-2025

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If your collection debt dispute was denied, it's important to understand that you have other debt relief routes to consider instead.
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Picture this: You spot a collection account on your credit report, you file a dispute, and … nothing. The credit bureau or debt collector denies your claim, saying the account is accurate. Now you're left with a ding on your credit, impacting your ability to borrow money at a low rate and leaving you with a growing sense of confusion over what to do next.
But here's the thing: A denied debt dispute doesn't mean you're out of options. It might just signal the need to shift your focus from fighting to remove it from your credit report to resolving the debt itself. Whether the account is accurate or not, tackling it head-on with the right strategy could help protect your finances — and ultimately your peace of mind.
There are a few different ways you can do that, and each option comes with its own set of potential benefits and downsides. So before you take steps to try and resolve your debt, make sure you understand your options and how they could impact your finances both now and in the future.
Find out what steps to take to get rid of your high-rate debt today.
5 debt relief options to consider if your collection account dispute is denied
If you've hit a wall with your debt dispute, here are some of the routes that might be worth considering next:
Try to have a portion of the debt forgiven
If you can't pay the full balance owed but want to resolve the debt, negotiating a settlement for less than the total amount might be your best option. This involves offering the debt collector a lump sum that's less than what you owe — generally about 30% to 50% less than the original balance — in exchange for the remainder being forgiven.
This can be done either on your own or with the help of a debt relief expert. The latter could help increase your chances of a successful settlement. Either way, though, if you can have part of the debt forgiven, doing so could make it a lot easier to get rid of it for good.
Chat with a debt relief expert about the solutions available to you now.
Use a debt management plan to lower the rates and fees
If the collection account is just one of several debts you're struggling to manage, working with a credit counseling agency on a debt management plan could provide the help you need. These plans roll your unsecured debts into a single monthly payment and often result in paying lower interest rates and fees than you originally owed.
While debt management typically won't help you address any debts that are already in collections, some debt collectors may agree to participate if they have a relationship with the credit counseling agency or see that you're making a serious effort to repay. Either way, it's generally worth asking a credit counselor if this is an option for your situation.
Wipe it out with a debt consolidation loan
If you have good enough credit or a cosigner, consolidating all of your debts, including your collection account, into a single lower-rate loan could be a smart way to wipe out the debt and regain control of your finances. With this option, you'll use the loan to pay off the collection debt (and any other debts you want to get rid of) in full. You'll then repay the new loan in fixed monthly installments. This can be a helpful way to simplify your finances and avoid further damage to your credit, but it only works if you can qualify and stay current on the new loan.
Inquire about assistance or hardship programs
Some debt collection agencies or original creditors offer hardship plans or programs to those who are facing serious issues, like a job loss, medical problem or another major disruption. These programs can make it a lot easier to deal with your debt because they can reduce the total amount you owe, pause collection activity or allow you to set up affordable monthly payments. To take advantage of this option, you'll typically need to contact the debt collector directly and provide proof of your financial hardship. Not all agencies offer these programs, but it's still worth inquiring about before moving to more drastic solutions.
Eliminate the debt by filing for bankruptcy
If the collection account is part of a larger financial crisis and you see no realistic path to pay off that or the rest of your debts, filing for bankruptcy could offer a fresh start. Chapter 7 bankruptcy can eliminate most unsecured debts, including those in collections, while Chapter 13 creates a structured repayment plan over three to five years.
It's not a decision to make lightly, as bankruptcy stays on your credit report for up to 10 years, but it can be a lifeline for those who have found themselves overwhelmed by their debt. Before you decide on this path, though, make sure you talk to a bankruptcy attorney who can help you determine if this is the right step.
The bottom line
If your collection account dispute is denied, it can feel like the system is stacked against you, but it could be a chance to pivot toward more meaningful solutions. While dealing with collections isn't easy, you're not powerless. Whether it's settling the debt, consolidating it with your other debts, entering a repayment plan or exploring more serious relief options, there are still ways to regain control. So, weigh your options, consider the routes that make sense and don't hesitate to seek professional help if you decide that the stakes are high enough to justify the cost.