The Debt Validation Letter
Collection calls and debt validation. They’re two things that go together when anyone is struggling with paying off debts. When you’re behind on payments, whether it’s on your mortgage, car payments, or debt like medical bills and credit cards, sooner or later you’re likely to get phone calls from a collection agency. Anytime you have personal debt and get behind on payments, the creditor commonly hires a third party collector to get the debt paid back. They could hire a collection agency or even an attorney who specializes in recovering debts.
The Fair Debt Collection Practices Act, or the FDCPA, was created to protect consumers when they’re being plagued by phone calls from relentless collections agents. The Federal Trade Commission wrote the law which protects consumers from unfair, and often illegal collections practices. Some consumers have been threatened with having their property taken, arrest and imprisonment, and even with threats against them or their families. However, every consumer has rights to protect themselves.
Although the consumer has certain rights, so do the debt collection companies, but many of them abuse their rights, and routinely use practices that are at the least, unethical. Some methods they use to collect debts are in many cases, illegal. Anytime you have debts that pile up, and get collections calls several times a week, or even everyday, there are steps you can take to stop the harassment.
One of the problems that people face when they’re behind on payments is constant collections calls. Millions of people literally don’t know what their rights are when they’re contacted by a company that takes over accounts regarding debt, and attempts to resolve the debt by phone calls to the debtor. People in this situation are usually under a lot of stress just trying to figure out how to make ends meet, and they don’t know the laws well enough to protect themselves. Every consumer should learn what’s covered under the FDCPA, and what legal actions they can take under the law. When a debt is turned over to a third party for collection, the debt collector has certain rights, but so does the consumer, and in many cases their rights are violated. The worst part is that they don’t know their rights well enough to fight back. Collection calls and debt validation are specifically addressed under the FDCPA.
The ways consumers find out about debts that they aren’t already aware of, are from their credit report, through a letter in the mail, or by collections calls. You may actually owe the debt, but in some cases, there may be an error on your credit report, or it could be some scam created to get money from people who don’t know the law well enough to protect themselves. The best protection any consumer has against collections methods that may not be legal, is to have the debt validated. Under the Federal Fair Debt Collection Practices Act, a consumer has the right to challenge any debt and they may request written verification of the debt, including the specific item the debt is for, and the exact amount that’s owed.
Consumers have the right to dispute any debt that a creditor claims they owe, and are entitled to written verification of the debt under the FDCPA. in §809 of the act, located under code Title 15, Section 1692-1692p. Debt collectors are considered to be collections agencies and lawyers hired to collect debts. If you receive a phone call or letter stating that you owe a debt, the collection agency is required by law to send you verification when you request debt validation. It may be confusing to some people because the original creditor may not be subject to the FDCPA, but they could be liable under the Fair Credit Reporting Act or state laws.
If a consumer disputes a debt, under the law they have thirty days in which to send a written request after the first written notice sent by the collections company. The entire debt or part of the debt can be disputed, but must be within the thirty day limit. The collections agent must provide information regarding the debt. When they either buy your account or have it assigned to them by a creditor, they must act in accordance with the FDCPA. The debt collector has to provide validation of the debt they claim you owe. As validation, they must provide a copy of the original agreement or application for credit. According to the FDCPA, written proof must be provided to you showing that you actually owe the debt to the third party. If they send a computer printout, that’s not considered legal. They also are not allowed to demand payment from you if they have to search your records.
You as a consumer, should know what the entire process of debt validation is so that you can protect yourself. When you request debt validation from a collection agency, they must provide proof in writing that you actually owe the debt. You can request statements from the original creditor, or you can request the entire payment history, and they must provide it. A copy of the original loan agreement with your signature is also used as proof.
Creditors hire third party collections agencies because they don’t have the resources to handle all the delinquent accounts they get. The collection agency will often use unethical methods of collecting since it’s in their best interests. They get a percentage of the amount collected. There’s a difference between the debt being purchased or assigned. If it’s assigned. They don’t own the debt. Technically a consumer doesn’t owe them money. You should always request validation from the collection agency. If they can’t validate the debt there’s no proof you actually owe it. Under FDCPA Section 809. Validation of debts [15 USC 1692g], the collections agent must show proof that you owe money to them and not to the creditor.
As far as collection calls and debt validation, the FDCPA is very specific about when collection calls to anyone owing a debt can be made. If the law is violated, the collection agency could be liable for up to $1,000 for each violation of the law. If a creditor is unable to validate a debt, under the law they can’t collect any money. They can no longer contact you about the debt, and they aren’t allowed to report the debt. If they do report the debt, they’re in violation of the Fair Credit Reporting Act. An important point to keep in mind, is that if a collection agency sends you a summons to appear in court, they can’t file a lawsuit against you if they haven’t validated the debt within the 30 day period. Know what your rights are under federal law so you’ll know how to proceed if you ever have to deal with a third party collection company.
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