In dealing with collection agencies, there's a very important step a lot of people overlook. According to the Fair Debt Collections Practices Act (FDCPA), you can demand that a collection agency send proof that a) the debt they are trying to collect is valid and b) that they are legally enabled to collect it. And why would it be otherwise?
Some company comes to you, claiming to be collecting money for some debt you owe someone else. And you're just going to whip your wallet out and pay them?!
The law recognizes this, and a collection agency must provide you with paper-trail proof that you owe what they say you do, how they figured out the totals, and that they are legally allowed to collect said debt in the state you are in.
To do this you'll need to write a letter to the collections agency, along these lines:
You
111 Main St
Where you Live, CA 90210 Name of Collections Agency
123 First St
New York, NY 01111 01/02/03 Re: Acct #123456789 To Whom It May Concern:
Dear collector, I am hereby requesting validation of the referenced debt in accordance with the FDCPA Act, 15 USC 1692g Sec. 809 (b). Please provide me with the following validation that I am legally obligated to pay you. I will require:
Identity of the original creditor and what the debt is for Proof I agreed to pay the money you say I owe Proof the debt is still within the statute of limitations Proof that you have a license to collect debt in my state |
This is not a denial of payment or refusal to pay. Once I receive the above validation, I will need 30 days to review it during such time you will not contact me about this debt. If you cannot validate it within these 30 days, you must remove this account from your records and my credit file and send me proof of this deletion.
Thank you,
You
This will do two things: it will buy you some time, and it will force the collections agency to actually do some work. A good portion of the time, they won't respond at all and you'll be in the clear. SEND THIS VIA CERTIFIED MAIL SO YOU CAN PROVE THEY GOT IT! If they don't respond, send them a COPY of the certified mail receipt and tell them they are in violation of the FDCPA and you intend to sue them if they do not delete your account. Keeping track of all of this can be a pain, and you may want to look into some software that can help you organize your efforts: check out Credit Doctor. |
