Debt Validation Strategy against Bill Collection Agencies
You received a collection notice from a bill collection agency saying that you have a credit due amounting to US $– from “so and so”. Your brain goes haywire trying to remember that money you owed and from whom. You also feel doubtful of the authenticity of the notice and the bill collection agency, so you take that one important step in debt settlement- Debt Validation.
To validate your debt and the collection agency, one should send a letter requesting validation from the collection agency. The address of the collection agency is stated in the collection notice probably have received earlier. If not, you can know the address of the company through the Better Business Bureau (www.bbb.org), www.millcbs.com/search.asp, or through the resident agents’ information available in your state (www.residentagentinfor.com). You may also opt to file a dispute against the collection in the credit bureaus.
Consumers should wait for a period of 30 working days to get reply from the bill collection agencies. The response letter from the collection agency should have the following information: (1) proof saying that the collection agency is the rightful owner of the debt or responsible for it; (2) detailed and complete payment history; (3) copy of the original signed loan agreement or credit card application.
It is considered violation of the Fair Debt Collection Practices Act if the collection agency fails to send sufficient proof of the authenticity of the debt. You can then demand that they must immediately scrap the collection listing from the credit report or else you may take the necessary legal action against them.
After this, wait for at least 15 to 20 days to hear from the collection agency. If they finally send proper validation like original contract signed by the creditor, check for license or state requirements involving collection agencies since in some states, collection agencies should be licensed.
If the collection agency finally agreed to remove the listing from your credit report, you must send a copy of the letter to the Consumer Reporting Agency (CRAs). If the collection agency is still indignant in the non-removal of listing, then file a lawsuit against them in a small claims court. The crime will be the non-verification of debts under the FDCPA.
