Understanding Collection Letters And Your Right To Validate
Here is something you may not know about your creditors; in the process of debt
collection most creditors at some point will eventually hand your debt over to another
agency specializing in debt collection for the assistance of collecting that debt.
These agencies can come in many varieties: from your average 3rd party
debt collectors to law firms that practice in debt collection. Regardless, these
agencies serve the same purpose, to collect the debt!
During this transition, pursuant to section 809 (a) of the FDCPA, all collectors
are required to send you a notice detailing the debt for which they are collecting,
the amount owed and their role in that purpose. These notices are what we call “30
day letters,” and allow consumers to request validation in order to substantiate
the debt.
Validation offers the consumer the ability to dispute and/or demand support concerning
any portion of the debt they feel may be inaccurate before the actions of the debt
collector can move forward. Every consumer has a right to exercise his or her option
for verification of any debt which is sold or sent to an agency other than the original
creditor.
If you believe in any way that a debt which is now being collected by a 3rd
party debt collector is either not yours, not accurate, or unrecognizable, it would
be in your best interest to take advantage of the opportunity afforded to you under
this law by doing any of the following;
- Requesting copies of the original signature on applications for the alleged credit
- Requesting proof of each and every charge made since alleged credit was issued to
include any periodic change in interest rate and/or fees
- Requesting proof of signature of receipts of alleged purchases made on the account
since alleged credit was issued
Demanding validation is a right that is afforded to everyone; for information regarding
this along with many other laws pertaining to debt collection, please visit
http://www.ftc.gov/ for more information.