Validation Of Debt Letter And Why It Is Necessary
The validation of debt letter is the largest part of the knowledge one must understand in the arsenal of tools responsible for beating the collections process. This effective demand letter is of great value when it is used correctly to deal with original creditors and third party junk debt collectors of any type.
Over and over innocent debtor falls prey to their creditor or debt collector who has been heaping collections even on old debts without giving valid authentication or validation. Unfortunately your creditor and collections agency will not properly validate the account they are collecting on unless you compel them to.
If you decide to do the validation and authenticate your debt over the telephone, you should not expect to receive the results that you want because it is very unlikely that your creditor or collections agency would pay attention to your request. On the contrary your creditor will rebut your contention and will keep coming after you confronting you with one lame excuse after another as to why they do not need to validate the debt and acknowledge your requests. That is why it is very important that you make a well written debt validation letter.
Unfortunately most consumers know little or nothing about the powerful purpose that a validation letter has. And because of this, there is a need to educate people on how to write an all inclusive demand letter so that the average consumer that is being collected on could invoke the power of Federal law under the Fair Debt Collection Practices Act (FDCPA).
As a consumer the FDCPA gave you the rights to demand for validation. By sending debt validation letters, you can determine whether or not you are communicating with your original creditor or to a third party junk debt collection company who has no rights to collect on your debt. This is very helpful because this is the basis as to how you will dispute the debt when drafting the letters and this can be rather different depending on whom you’re sending the letters to.
Another very important detail to consider is what gives the collector the right to collect and what information is required by law. It is very necessary for you to request more information than is required by Federal law under the FDCPA because at the end of the day the worst answer you would get to such a request is a no.
A validation of debt letter can be fairly difficult to sketch on your own if you’re not acquainted with what you’re doing. Since sending a properly presented validation letter can be the determining factor between thousands of dollars of debt that you may have to pay in the future, whether you settle or not, I would personally advise receiving some help while scripting these letters. There are courses available that provided such a service that are worth the cost. When sending debt validation letters you need to send them at the right time during the collection process. When sent too late, debt validation letters can offer almost no protection. There are actually numerous types of validation letters that can be sent at varying times all through the collection process.
Validation of debt letter are given power by the FDCPA or the Fair Debt Collection Practices Act. This Act, or law, will require all debt collectors to supply validation on every account that they are attempting collection on but only if the consumer asks for it. This Act also prohibits debt collectors from ongoing harassment following a request for validation of debt letter, unless the collector can present lawfully demonstrable validation that prove you in fact owe them money or something of value.
There is a big difference between a debt validation and a debt verification. Some credit collection agencies and debt loan consolidation companies use these two terms interchangeably. This is incorrect and will lead you off track from the defense that a well put together debt validation letter can offer.
There is a big difference between a validation letter and a request for verification of debt as the latter is simply requiring a debt collector to confirm your name and mailing address. This type of request does not establish in any way whatsoever that you are obligated to pay the debt collector a dime of money. As you can see this is why it is so important to send a validation of debt letter that is properly written, requesting the precise information needed.
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