Throughout the recent years in the credit card debt collection industry, two types of letters have been confused on a regular basis. The first is debt validation letters, which provide consumers with extremely valuable protection against unwarranted collection efforts by both creditors and debt collectors. The second letter is a debt verification letter, which provides little if any protection to any consumers. Do not get these letters confused!
So why are debt validation letters so important. Lets start explaining this by looking at the crazy history of the credit card debt collection industry. In the past, companies in this industry have collected on thousands of accounts while having no right to do so. The government passing litigation against these practices eventually stopped these phony collection companies.
Soon after these outrageous collection companies began making all sorts of illegal collections, the United States Government passed the FDCPA or Fair Debt Collection Practices Act. This Act provides the legal power that supports the use of debt validation letters and stops unethical collection agencies from making illegal collections.
Debt validation letters have the most effect when sent timely and with the proper composition. Once a creditor or debt collector receives one of these letters they are left with three choices. One, they can validate the account and continue the collection process. Two, they can stop all collection efforts. Three, they can chose not to validate the account and continue collection attempts running the risk of a federal lawsuit.
There is one downside to the FDCPA and debt validation letters. The downside is that creditors and debt collectors are not required to validate your account unless you request the validation. Most people assume that if a collector is calling you that they already have all the information that they need to collect. The fact is that about 90% of the time this is not true.
Here is another interesting fact for you. Third party debt collectors are most exposed by the Fair Debt Collection Practices Act. The reason being that they have very little of the information that the FDCPA requires to validate debt. Does it make more sense to you now why third party debt collectors rely so much on intimidation and rarely if ever sue the people that they are attempting to collect on? If you are dealing with a third party debt collector, you need to send a well-written debt validation letter immediately!
How can you figure out how to write and when to send these letters? This is a great question and the answer is quite simple. All you need to do is to become an expert at using debt validation letter templates. After you have found a quality debt validation letter template you can adjust to your personal situation and send it off. You will be one step closer to being free from creditors and debt collectors!
So why are debt validation letters so important. Lets start explaining this by looking at the crazy history of the credit card debt collection industry. In the past, companies in this industry have collected on thousands of accounts while having no right to do so. The government passing litigation against these practices eventually stopped these phony collection companies.
Soon after these outrageous collection companies began making all sorts of illegal collections, the United States Government passed the FDCPA or Fair Debt Collection Practices Act. This Act provides the legal power that supports the use of debt validation letters and stops unethical collection agencies from making illegal collections.
Debt validation letters have the most effect when sent timely and with the proper composition. Once a creditor or debt collector receives one of these letters they are left with three choices. One, they can validate the account and continue the collection process. Two, they can stop all collection efforts. Three, they can chose not to validate the account and continue collection attempts running the risk of a federal lawsuit.
There is one downside to the FDCPA and debt validation letters. The downside is that creditors and debt collectors are not required to validate your account unless you request the validation. Most people assume that if a collector is calling you that they already have all the information that they need to collect. The fact is that about 90% of the time this is not true.
Here is another interesting fact for you. Third party debt collectors are most exposed by the Fair Debt Collection Practices Act. The reason being that they have very little of the information that the FDCPA requires to validate debt. Does it make more sense to you now why third party debt collectors rely so much on intimidation and rarely if ever sue the people that they are attempting to collect on? If you are dealing with a third party debt collector, you need to send a well-written debt validation letter immediately!
How can you figure out how to write and when to send these letters? This is a great question and the answer is quite simple. All you need to do is to become an expert at using debt validation letter templates. After you have found a quality debt validation letter template you can adjust to your personal situation and send it off. You will be one step closer to being free from creditors and debt collectors!
About the Author:
Learn more about how to settle credit card debt. Stop by Allan Henry's site where you will find out all about debt validation letter and what it will do for you.
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