When thinking about debt collectors we know that a lot of people have a misconception in reference to what they need to do when faced with creditors. One thing is for sure, is you have to understand what you need to do when you are approached or when you receive a letter for a debt collection.
What can you do when you get called by a collection company.
We all dislike some of the tactics that these collections companies try to take when dealing with debts. One thing to keep in mind is you want to make sure that you don’t acknowledge that you owe the debt. This is one of the key things to understand when you are dealing with a collection company. The moment that you acknowledge that you owe the debt then it could restart the process all over again.
Be careful what you say on the phone.
When you get a call from the collection company don’t acknowledge that you owe the debt. One reason is because the debt could be past the statute of limitations. Remember, every state has a statute of limitations in which a debtor can sue you. Remember that when you are talking to a debt collection company, remember that the phone calls are recorded. That why you always hear the message this phone call is recorded for quality assurance..
If you do get a call from them you want to make sure that you ask them to identify who you are speaking with or what company they are representing. The phone verification is were a lot of people mess up because if they verify who you are then you are acknowledging the debt.
So you do not want to acknowledge that you owe any debt? Another thing to keep in mind is do not answer any questions regarding the debt because then you will be giving them an angle to collect the debt.
Make sure you do not give over any financial information. No credit cards, No banking information. You goal is to make sure you send the validation letter first. When you do the validation letter first you want to make sure that they can provide proof that you owe the debt.
So before you accept the discount settlement offer it would be good idea to send them the validation letter first to see if they can provide proof that the debt is owed.
Sending Validation Thru Mail.
Remember, before you settle a debt. You want to make sure you get proper validation. When you receive calls from the collection company. A good thing to do is see if you can find the letter that the collection company sent to you and send a letter of validation through certified mail. The reason you are sending it this way is because you want to keep a file of the validation letters.
When your are doing this process you have to make sure that you keep good records. If you feel that for some reason you dont have the time to do this then we will take about using credit clean up companies that can help you with this process.
Understand that this is something you can do yourself or if you feel you dont have the time then we will talk about finding the right credit company to deal with.
Remember Validation comes first. If they do not validate then they will have to cease and desist on collect and in some case remove harmful information from your credit report. If for some reason that they turn around and give full validation of the debt and fully validate that they are able to collect the debt then you can move towards doing debt settlement offers.
Keep in mind that although you are successful with removing items from you credit report the debit is still attached to you until you decide to do a full debt settlement with the original debtor. The Fair Credit Reporting Act has laws against debt collection companies reposting items to your credit report that was once successful deleted from you
The following is a example of a Validation Letter:
Date
Your Name
Your Address
Name of creditor/collection agency
Address of creditor/collection agency (from your credit report)
Re: Acct # 000-000-000-000
To Whom It May Concern:
This letter is regarding account #000-000-000-000, which you claim [insert
a derogatory condition here, such as “I owe $XXXX” or “my account was
charged off $XXX”]. This is a formal notice that your claim is disputed.
I am requesting validation, made pursuant to the Fair Debt Collection
Practices Act and the Fair Credit Reporting Act, along with the corresponding local state laws. Please note that I am requesting “validation”; that is competent evidence bearing my signature, showing that I have (or ever had) some contractual obligation to pay you.
Please also be aware that any negative mark found on my credit reports
(including Experian, Transunion and Equifax) from your company or any
company that you represent, for a debt that I don’t owe, is a violation of
the FCRA & FDCPA; therefore if you cannot validate the debt, you must
request that all credit reporting agencies delete the entry.
Pending the outcome of my investigation of any evidence that you submit,
you are instructed to take no action that could be detrimental to any of my
credit reports.
Failure to respond within 30 days of receipt of this certified letter may
result in small claims legal action against your company at my local venue.
I would be seeking a minimum of $1,000 in damages per violation for:
· Defamation
· Negligent Enablement of Identity Fraud
· Violation of the Fair Debt Collection Practices Act (including but not
limited to Section 807-8)
· Violation of the Fair Credit Reporting Act (including but not limited to
Section 623-b)
Please Note: This notice is an attempt to correct your records, and any
information received from you will be collected as evidence should any
further action be necessary. This is a request for information only, and is
not a statement, election, or waiver of status.
My contact information is as follows:
Your Name (printed not signed)
Your Address
SSN
Conclusion
We all do not like the idea of dealing with collection companies. But If you do your best to understand the process we are able to do our best with clearing up our debt. Then this will help your credit score and then you will be able to move towards home ownership.