Defense Against Debt Collectors
Most people facing foreclosure also have to deal with unpaid credit card bills and other unsecured debts. Federal law protects you against abusive collection practices.
If you do not wish to be contacted by collection agencies, you have the right to request that they stop. You should send all corresponses via certified mail with returned receipt requested. The golden rule in debt collection mitigation is to never talk to them by phone; insist that all communications must be done in writing. That strategy prevents verbal abuses and give you control over the situation.
Once you receive a debt collection letter, you have 30 days to request the validation of the debt. In that letter you can also request that all phone communications must cease.
Use the sample Debt Validation Letter below.
Jane Doe
1234 Main Street
Anytown, USA
DEBT COLLECTOR INC.
1234 Scum Rd.
Meantown, USA
Date: 09/07/2008
SENT VIA REGISTER MAIL # 7090-1234-1234
RETURNED RECEIPT REQUESTED
Re: Acct # 123456767
To Whom It May Concern:
This letter is being sent to you in response to a notice sent to me on August 01, 2008. Be advised that pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (b) your claim is disputed and validation is requested.
I respectfully request that your office provide me with evidence that I have any legal obligation to pay this alleged debt.
Please provide me with the following:
- What the money you say I owe is for;
- Explain and show me how you calculated what you say I owe;
- Provide me with copies of any papers that show I agreed to pay what you say I owe;
- Identify the original creditor;
- Show me that you are licensed to collect in my state;
- Provide me with your license numbers and Registered Agent;
At this time I will also inform you that if your office have reported invalidated information to any of the 3 major Credit Bureaus (Equifax, Experian or TransUnion) this action might constitute fraud under both Federal and State Laws.
Also during this validation period, if any action is taken which could be considered detrimental to any of my credit reports, I will consult with my legal counsel for suit. This includes any listing any information to a credit reporting repository that could be inaccurate or invalidated or verifying an account as accurate when in fact there is no provided proof that it is.
If your office fail to respond to this validation request within 30 days from the date of your receipt, all references to this account must be deleted and completely removed from my credit file and a copy of such deletion request shall be sent to me immediately.
I am also requesting that no telephone contact be made by your office to my home, cell phone, or to my place of employment. If your office attempt telephone communication with me, including but not limited to computer generated calls and calls or correspondence sent to or with any third parties, it will be considered harassment and I shall seek legal remedy. All future communications with me MUST be done in writing and sent to the address noted in this letter by USPS.
Best Regards,
Jane Doe
Once they receive the debt validation letter, debt collectors must verify the debt and stop all phone communications. If they persist on calling, take note of the date, time and phone number of each call.
File a complaint with your state Attorney General and sue them in Federal court for damages.
Some debt collectors may select to sue you in state court for the debt. If you receive a complaint, do not ignore it. Promptly file an answer disputing the debt and request the ORIGINAL contract. The rule of evidence applies; the burden is on them to prove their case. In most cases they only have copies and cannot provide the original contract. The big mistake most people make is to simply ignore the complaint.
