With mass layoffs and only a few job opportunities each month, many Americans are in debt trouble. The aggressive collection of calls adds stress. Did you know that there is a way to stop the debt collection cold? Have them verify the debt.
Some collectors call you every day. It is worrying because the conversation is repeated. He tells you that your account is criminal and you tell him you can’t pay (probably because you lost your job or you spent a lot on medical bills). Whatever it is, the debt collector continues to tell you that he will continue the fundraising effort. You can ask him to stop calling you and tell him you want to write a certified letter. The calls can continue until they receive the letter.
You can ask the debt collector to stop calling you in your next call, but writing a letter to the debt collection agency is the sure way to make the calls stop. In your letter, request the debt collection agency to verify the debt and stop calling you unless they have already verified it. It will usually take a long time before they confirm the debt. Sometimes it is impossible for them to do so.
Many debts are transferred to third-party collection agencies through allocation or purchase. At the allotment, the original creditor hires them only to recover, but the debt is still in the original creditor. With purchase, you now own the collection agency. Whatever the case, you do not know the collector simply because you borrowed money from another agency or company. No one in his right mind will give a tremendous amount of money to someone he has just met, right? Debt verification is actually needed.
The Legal Debt Collection Act gives you the right to ask the debt collection agencies to verify the debt and prove that they are collecting for the original creditor. The evidence may include a debt transfer paper copy or purchase where your account is included in the batch. Beware of debt collection agencies that only send a cover letter where you can see a page signed by the original creditor and the debt collection agency stating debt purchases. Look for the list of debt account numbers sold and name sold.
The FDCPA also gives third-party collection agencies a deadline to verify the debt. They must send the confirmation letter within five days. It should include important details such as the name of the original creditor and the size of your debt. You can dispute their confirmation letter within 30 days and make the collection agency proof that it is your debt. They do not have a deadline for this, and their collectors can still contact you unless you formally ask them to stop telephone communication through a requested postal return. The evidence must include proof that the debt collection agency has your debt, a history of your payment and a copy of your original contract (the one with the original creditor).