Do it Yourself Debt Settlement Tips – How to Write Your Debt Settlement Letter

Reference the debt using the identification they provided in the collection letter, such as collector account number, creditor account number, creditor name, etc. Clearly state that you dispute the collection and that according to the FDCPA you demand that the collector provide proof that they own the debt and have the right to collect, as well as proof of the amount owed by providing a copy of your signed credit agreement with the original creditor and a complete accounting of amount in question. If you are not comfortable doing this yourself contact a reputable credit repair company. Most legitimate credit repair businesses offer debt validation as part of their arsenal and will be happy to do this for you. . And if the debt collector knows that you understand your rights – and aren’t afraid to defend them in a court of law – he or she will more likely to abide by the laws that govern debt collection agencies. The Letter of the Law – The correct way to respond to a collection letter is with a written request for debt validation. This is your right under the Fair Debt Collection Practices Act (FDCPA), and if done in a timely and correct manner can produce fantastic results. Validation of debts 15 USC 1692g (b) “If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector. . But nothing ever really happens with many debts — the original lender already wrote it off and the collection agencies buy the debts for so little that they can just pursue the easiest, least informed borrowers. The second action that debtors may take is to request that the collection agency validate the debt. Federal laws provide that collection agencies must prove that they own a debt before they are able to collect on it. When borrowers do not request validation, the complany collecting the debt will assume that it is valid. . Keep the record. Keep all your communication records with the creditors safely. Not confident enough when you talk to your creditors Not sure if they are willing to accept your ways of debt settlement What are the things that you can do to convince them in order to accept your offer – Presentable debt settlement letter – Letter plays an important role in the communication between you and your creditors. From the letter, the debt collectors can know why you are unable to repay your debts, your financial difficulty and how you can repay the debts. .

That the Plaintiff listed on your Complaint has the Legal Rights to sue you. That is proven by showing you and the court a copy of the Assignment they received from the Original Creditor. Now, was that attached to the Complaint Does your Local Court Rules say that it needs to be attached to the Complaint – How about the Contract Was that attached to the complaint Do your local court rules say it needs to be – Would you believe some guy named Joe who came knocking on your door and said hey buddy you owe me 5000. Would you pay him just because he said so – Same thing with these Credit Card Lawsuits. . In fact, debt collection agencies often make mistakes and send out collection letters to the wrong people. That’s why the Fair Debt Collection Practices Act gives consumers the right to ask for validation of the debt. Within five days of their initial contact, a debt collector must send you a letter telling you the specifics of the debt in question. Step 2 Dispute the Debt – Once you’ve received the letter, you’ll have 30 days to determine whether or not the debt is truly yours. . It’s almost as if they said GREAT He or She lives there, he or she answered, now we can sue him or her – Legally, they are suppose to respond to my Debt Validation Letter. What a JDB thinks is this for example – You owed 1400 on a Credit Card and Defaulted. YEP 12 measily BUCKSThey find out where you live, get a response, sue you or get no response and sue you anyways. Most of them will sue you if they know you have a job or assets (property) in your county. . I strongly recommend that you specifically list the documents and information you want them to send you. Ask them for proof they have the legal right to collect the debt, a detailed calculation of the amount claimed owed, and a copy of your original signed contract or account agreement. Right and Wrong Results – If a collector cannot validate the debt they should stop collecting and not report to the credit bureaus. But it does occasionally happen that they send nothing more than an internal printout or some such thing, and then continue their collection efforts. .

One should be cautious about the fact that it is not applicable to all types of debt. Collection agencies that use illegal methods to extricate the entire amount owed by the defaulter, should be wary about the fact that the victim may have a fair idea about So – L, and any unlawful attempt made by the agency may back fire. Filing for bankruptcy is never a good idea to deal with creditors of unsecured debts. There are a few effective legal alternatives to eliminate your debt or, even reduce it to a considerable extent. . From Discomfort to Opportunity – There is nothing pleasant about receiving a collection letter. But there is a powerful credit repair technique, known as debt validation, which can turn your discomfort into opportunity. Like most credit repair techniques debt validation should be done carefully and only in circumstances conducive to success. Your Rights – Debt validation is the right to challenge a debt and receive written verification of a debt from a debt collector. . In reality, a cease and desist letter should probably only be used once a debt has been validated. Often, third party collectors will ignore the law and continue to contact you andor report a debt even after they fail to validate it or receive a cease and desist letter. That means they can be vulnerable for thousands of dollars and there are a number of lawyers willing to take them on. Believe it or not, the law is on your side once you understand how to utilize it to your benefit. . When asking for validation, request the name and address of the original creditor, the amount owed, how they came up with that figure, and most importantly proof that they now own the debt. A collector can not pursue collection efforts when you have requested validation until they have complied with your request. If they can’t or won’t comply they must cease all collection efforts and can’t report you to the credit bureaus. The credit industry is largely a fraud based on the willingness of the average person to believe propaganda. .

Sometimes collection letters are sent out on very old debts or even debts that have already been paid. If you don’t believe that the debt in question is valid, you can send a letter to the debt collector telling them that you don’t think the debt is yours. Be sure to do this within 30 days of receiving the first letter – otherwise the debt collection agency will have the right to assume the debt is valid. Step 3 Set Some Boundaries – Luckily for consumers, the Fair Debt Collection Practices Act outlines how and when a debt collector can interact with you – and you’re the one who gets to set the guidelines. . While there are legal solutions to all fiscal problems, these situations are best when avoided. If you’ve received a letter or phone call from a debt collection law firm, don’t panic. Many people have fallen on hard times and their phones are ringing off the hook with bill collector calls. It is one thing to have to talk to the normal collection agencies but what do you do when your contacted by a debt collection law firm The first thing you should do is stay calm. . There is a legitimate stipulation set by the laws that under this Act the creditors and collectors are compelled to certify every alleged collection with corroborative evidence when the request for validation is made. Not until the creditor or collector has completely certified your account, can they continue to collect any amount from you. Therefore a debt validation letter can protect you from the pursuing allegations of your creditor or collector. A debt validation letter is a grueling requirement on the part of your creditor or collector. . If you do not dispute the debt within the 30 day period allowed the collector is likely to ignore your request. Credit Repair Options – Once you have a collection notice in hand there are a couple of credit repair strategies you should consider right away. If you don’t recognize the debt you have the right to request the name and phone number of the original creditor. Collection notices are supposed to include the name of the creditor to whom the debt is owned, however in the case that the debt has been sold and resold the original creditors name may not be indicated. .

Now that you know what a debt validation letter is use it against them and stop them in their tracks. It can be pretty scary to walk to your mailbox and find a collection letter from a debt collection agency. But the truth is, because of the Fair Debt Collection Practices Act, you have more power in the situation than you might think. For instance, did you know that you actually get to control how the debt collector speaks to you – even in what format What’s more, the debt collector must prove to you that the debt is really yours before they can even begin their collection efforts. . In all cases, the documentation should be clear and provide definitive proof of the collectors claim. Say Goodbye to the Collector – What happens if the collector cannot (or does not wish to) provide the documentation that you request If they can’t comply. they can’t collect, they can’t contact you, and they can’t report the collection to the credit bureaus. An Important Note – Our credit repair clients occasionally express concern that if the collector is pushed too hard they will send a summons and attempt to get a judgment. . A verified name and address will not provide the evidence that you owe money from someone after all. There is no account validation process required in a debt verification letter. The prevalent harassment in the debt collection industry would still be possible. Given that, this verification letter is not an element in learning how to dispute a debt. . Creditors can be avoided by taking advantage of the ‘federal and state debt collection laws’ which protect the consumers from offensive conduct of debt collectors. Negotiation with creditors is welcome if there is even a little income flow or, small assets that can be sold for funds. Non profit credit or, debt counseling agencies can help to design a suitable repayment plan on behalf of the distressed defaulter. One should always evaluate his or, her assets and existing bank balance while taking loans or, hoarding up on other forms of debts. .

There is a legitimate stipulation set by the laws that under this Act the creditors and collectors are compelled to certify every alleged collection with corroborative evidence when the request for validation is made. Not until the creditor or collector has completely certified your account, can they continue to collect any amount from you. Therefore a debt validation letter can protect you from the pursuing allegations of your creditor or collector. A debt validation letter is a grueling requirement on the part of your creditor or collector. . A verified name and address will not provide the evidence that you owe money from someone after all. There is no account validation process required in a debt verification letter. The prevalent harassment in the debt collection industry would still be possible. Given that, this verification letter is not an element in learning how to dispute a debt. . And if the debt collector knows that you understand your rights – and aren’t afraid to defend them in a court of law – he or she will more likely to abide by the laws that govern debt collection agencies. The Letter of the Law – The correct way to respond to a collection letter is with a written request for debt validation. This is your right under the Fair Debt Collection Practices Act (FDCPA), and if done in a timely and correct manner can produce fantastic results. Validation of debts 15 USC 1692g (b) “If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector. . The Outcome of Validation – Per the FDCPA, if the collector has not reported your debt to the credit bureaus they are not allowed to do so until they provide validation. And if have already reported and are unable to validate the debt they must cease collection efforts and stop reporting. Following Through – Debt validation is a powerful credit repair tool which, in most cases will produce excellent results. But you should also be aware that legal precedent defining the obligations of the collector is inconsistent. .

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