Your first step should be sending them the debt validation letter. You can get the format from this site. If they successfully reply back within 30 days period, you can then sketch a repayment plan or can settle the loan with them. But, first thing first!

And what is the purpose of a Debt Validation Letter?

debt validation serves the following purposes

it makes the place collecting to prove the amount owed and how they came to that number

it makes them prove they have legal right to collect.

in some cases you can ask for a license#as some states require a CA to be licensed to collect in that state.

that is what validation entails.most JDB'S or CA'S like ARM cannot properly validate.so they sell it off to another collector.

I didn't even have to worry about a Debt Validation Letter. I called yesterday & spoke with someone who didn't have a clue so i told her that I would call back. Well this morning, the mgr calls and I ask her how did my anount get up to $500? Well she starts rambling off stuff and says that she can drop it down to a certain amount (which was alot less). I said I'll take it. I love this website because it empowers me. It teaches me "legal" things that I never knew. I never knew that you could request for a collection agency to validate your debt. I learn something on this website everyday. Anyways, kudos to this website and the people on it for all of your knowledge.

Nice that the collection agency has agreed on working the plan out with you. But still, are you sure about their ownership over your account? Who is reporting the debt to your credit report?

IMO the reason to validate the debt still prevails.

Also, are you sure that the debt wouldn't resurface again in a future date even after you repay it? If you settle with the CA make sure to obtain the paid and close statement from them and also ask them to report the same to the credit bureau.

Anewday, make sure that you have that agrrement in writing on a company letterhead and signed by a manager, other wise they will sell your account to another JDB and you may have to pay it again.

Thanks guest, I didn't know that! I would be furious if that happened.

SC, I didn't know that all of that had to be done...it's sad how these companies treat you when you are trying to pay your debts (better late than never).

So, do I ask them to send me a debt validation letter or what? What exactly do I need to say and do? This is all new to me.

Here is where you would get the sample letters that one may need to send to the CAs at different phases of debt negotiation. You would only need to adjust it according to your need.

Hope it'd help!

also, statute of limitations in MS is 3 years. I AM NOT SURE ABOUT THIS - SOMEONE HERE WILL KNOW FOR SURE.... i think if you have not paid on the debt in over 3 years, they cannot collect. They can report to credit reports etc, but their time has run out to collect. I had an old card with walmart that i let go bad and had a collection agency calling me about it. When I called back and asked them to send me documents on this debts as it had been years, and i honestly just didnt remember amounts but could they mail me the information, she asked me to hold. After a few minutes, SHE came back and said well it looks like its your lucky day. You have a limit of 3 years in Mississippi so we will have to consider your account closed. After I picked my jaw up, i thanked her and that was the end of that.

Thanks shmlt. I don't know either...I need to research a little more.