You are going to write a letter asking them to validate that the debt in question is yours. Tell them that they are incorrectly reporting negative information to the credit bureau that isn’t yours and demand that they provide proof that the account is yours via signed contract with your signature on it. The reason you need to deal with them by mail is because most of them have your information stored on a computer so in most cases they won’t be able to provide you a copy of the original contract. Having your information on a computer is called evidence of debt, not proof of debt. . The first legal step in dealing with the collection agencies should be the ‘Debt Validation’ method. Debt validation is a federal right granted under the Fair Debt Collection Practices Act (FDCPA). The procedure begins with ‘initial communication’ from the creditor in the form of phone calls, written letters or, even summons to appear in the court. Then within a period of five days they must notify in writing, the debt validation rights of the concerned person. . A collector might file a lawsuit after the time for filing a lawsuit has passed but if you know your statute of limitation, you should be able to dismiss such suit. If such collection is beyond the time limit for a lawsuit, you might choose to contact the collection to negotiate your debt or ignore the debt. If you choose to negotiate your debt, you should know that as long as your collector knows that you are aware of the SOL, he is willing to settle on what amount you are offering. If you choose to ignore the debt, after the period of reporting limit, the debt would have no effect on your credit report. . A verified name and address will not provide the evidence that you owe money from someone after all. There is no account validation process required in a debt verification letter. The prevalent harassment in the debt collection industry would still be possible. Given that, this verification letter is not an element in learning how to dispute a debt. .
That the Plaintiff listed on your Complaint has the Legal Rights to sue you. That is proven by showing you and the court a copy of the Assignment they received from the Original Creditor. Now, was that attached to the Complaint Does your Local Court Rules say that it needs to be attached to the Complaint – How about the Contract Was that attached to the complaint Do your local court rules say it needs to be – Would you believe some guy named Joe who came knocking on your door and said hey buddy you owe me 5000. Would you pay him just because he said so – Same thing with these Credit Card Lawsuits. . In fact, debt collection agencies often make mistakes and send out collection letters to the wrong people. That’s why the Fair Debt Collection Practices Act gives consumers the right to ask for validation of the debt. Within five days of their initial contact, a debt collector must send you a letter telling you the specifics of the debt in question. Step 2 Dispute the Debt – Once you’ve received the letter, you’ll have 30 days to determine whether or not the debt is truly yours. . It’s almost as if they said GREAT He or She lives there, he or she answered, now we can sue him or her – Legally, they are suppose to respond to my Debt Validation Letter. What a JDB thinks is this for example – You owed 1400 on a Credit Card and Defaulted. YEP 12 measily BUCKSThey find out where you live, get a response, sue you or get no response and sue you anyways. Most of them will sue you if they know you have a job or assets (property) in your county. . I strongly recommend that you specifically list the documents and information you want them to send you. Ask them for proof they have the legal right to collect the debt, a detailed calculation of the amount claimed owed, and a copy of your original signed contract or account agreement. Right and Wrong Results – If a collector cannot validate the debt they should stop collecting and not report to the credit bureaus. But it does occasionally happen that they send nothing more than an internal printout or some such thing, and then continue their collection efforts. .
The initial consultation is usually free, and the attorney can help you decide how to respond. Do not ignore a notice to appear in court If you don’t show up, the collector or creditor will obtain a default judgment against you, and that may give them additional powers to collect from you — maybe by garnishing your wages or seizing money in your bank accounts, for example. (State law determines what they can do to collect – another good reason to talk with an attorney. )It is important to be sure that the law firm is not breaking the law when it contacts you. . If you apply for a new loan, your creditor may make a hard enquiry using your credit score which reduces your credit score. However, you have the provision of sending a letter to your creditor to remove the hard enquiry which most creditors do on request. So if you need use the letters of credit in order to improve your credit score since it is a very important factor in deciding whether you will be eligible for your next loan. You stop and check the mail before you get home, and see an unfamiliar envelope. . The Response – What happens next Once you have sent a debt validation letter to a collector they must satisfy your request with adequate documentation. Ownership of debt may be proven with a contract or purchase agreement transferring the debt to them. The amount owed may be documented with account statements from the original creditor, or a copy of the original signed loan agreement and an accounting of the total. It is never sufficient for the collector to provide their own internal itemization of the debt. . A collector might file a lawsuit after the time for filing a lawsuit has passed but if you know your statute of limitation, you should be able to dismiss such suit. If such collection is beyond the time limit for a lawsuit, you might choose to contact the collection to negotiate your debt or ignore the debt. If you choose to negotiate your debt, you should know that as long as your collector knows that you are aware of the SOL, he is willing to settle on what amount you are offering. If you choose to ignore the debt, after the period of reporting limit, the debt would have no effect on your credit report. .
So, if you’ve received collection letters, take a deep breath, and let’s look at some of your options. Read the Letter Carefully – The first think you’ll need to do is read the collection letter carefully. Is the debt collector really looking for you, or have they accidentally sent the collection letter to the wrong address Do they clearly state whom they are and that they’re trying to collect a debt Do they give you contact information so that you can either phone them or write them in response – Make Contact – The worst thing you can do is avoid a debt collection agency, because many times, they’ll be allowed to take your silence as consent that you owe the debt. Instead, you’ll want to make contact with them and ask them for a debt validation letter. . o Debt validation letters. o Letter for removal of hard enquiries . o Pay for delete letter – Letters of credit may be sent to a creditor in order to eliminate a felonious account from your report. There are certain accounts that cannot be removed even with letters of credit. . What happens after the 30 days – Once your letter is received and the 30 day period is through, you should expect to get a response from the agency. They will either provide you with verifying or validating information, or they will simply provide you with a new copy of your credit report with the necessary changes. Is there a down side – While dispute letters can be useful in getting mistakes removed from your report, they can create problems in certain situations. For example, if you dispute a debt that is still within the statute of limitations in your state, there’s a chance the party you’re disputing with can take you to court and try to get a judgment against you. . It is an agreement with the creditor by the borrower by which the creditor promises to remove the negative listing from your credit report once the debt has been paid in full. Dispute letters with the credit bureaus A dispute letter is sent to the credit bureaus if you do not agree with certain negative listings in your credit report. When you send a dispute letter to the credit bureaus, the credit bureau verifies the listing with the creditor, and if they find the listing incorrect, they remove it from your credit report. Cease and Desist Letter If you find any debt collector disturbing you continuously over phone for collection of a particular debt which you do not owe, you can send a cease and desist letter to the debt collector. .
A collection letter from a collection agency can be a scary thing, but if you understand your rights under the Fair Debt Collection Practices Act, you can take control of the situation. Debt collectors hope that you don’t know your rights, but stay informed and in control, and they’ll be the ones running scared. . If the debt is valid and current, you’ll likely need to set up a payment plan with the debt collector to avoid legal issues. It’s important that you don’t give out any financial information on the phone, and that you only make the payments with a money order. If an unscrupulous debt collector gets a hold of your bank account information, they may make unauthorized withdrawals, leaving you in a bind. Know Your Rights – As you go through the process of paying off a debt, things will go a lot smoother for you if you understand your rights as set out by the Fair Debt Collection Practices Act. . In case of any violation of the rights of the consumer, the collection agency can be sued in the federal or state court and can be made to pay damages of up to 1000. Infringement of debt validation rights should be reported to the Federal Trade Commission (FTC). Whether in trouble or not, it is worthwhile to be acquainted with the Statute of Limitation (So – L). So – L is the legal time limit that bars the enforcement of debt through courts. . All a collector wants to do is to send out letters and collect money which should not be the case most times if you know your rights. If you do not recognize the debt, ask that collections give you the name and phone number of the creditor to whom the debt is owned. Most times when you cannot identify the debt, it is probably a debt that has be sold and resold. If you still cannot identify the debt, research the statue of limitations before going any further. .
Write down notes from every conversation with the collector as soon as possible. It may be willing to work out some sort of repayment plan and in some cases, you may even be able to settle the debt for less than what you owe on it. Send your dispute to the law firm by certified mail, and keep a copy for your records. If you are sued, be sure to talk with a consumer law attorney who specializes in debt collection. . Debt Validation Letters – Debt Validation Letters are written to collection agencies to ask a collection agency to validate a debt. Debt validation is simply a consumer’s right to challenge a debt andor receive written verification of a debt from a debt collector under the Federal Fair Debt Collection Practices Act (FDCPA). Pay for Delete Letters – A pay for delete letter is usually written to a debt collector in hopes of negotiating to pay on an existing account in hopes of having the account removed or updated as positive on your credit report. Cease amp Desist Letters – A cease amp desist letter can be sent to anyone, usually a debt collector, to request that they immediately stop contacting you. . While they’re gathering the documentation, they’re prohibited from contacting you. Often, a debt collection agency simply doesn’t have the necessary proof, and they’ll stop attempting to collect the money. If they do have substantiation for the debt, they must send it to you in writing. Then, you can check to make sure that your records and theirs are in agreement, and that they haven’t added on extraneous (and illegal) charges. . A fair debt attorney should take your case at no cost to you, and could get you up to 1,000. The best way to repair your credit is to write letters to the credit bureaus and collection agencies. There are many different credit repair letters for many different situations. The most popular credit repair letters are dispute letters, debt validation letters, pay for delete letters and cease and desist letters. .