Welcome
how you can validate a debt
ok, there is a lot of talk here about how to validate a debt with a collection agency. i'll explain how to do this with success (not guaranteed though!!).
first, once an account has been placed with a collection agency, they are required - by law - to send a written notice explaining who they are, who they are collecting for and the amount they are trying to collect. it will also include the name, address and phone/fax # for the collection agency. there will also be something to the effect of 'if we don't receive written notice from you within 30 days to dispute the validity of the debt, it will be considered valid.' more on the 30 days limit later.
so let's say you get a phone call from a collection agency and you have no idea what it's for, you thought you paid the bill or you never knew you owed it in the first place. if you request a validation of the debt, odds are the agent will simply state a letter had been mailed out and that's all they are going to send. that is still within the law. it is practice for collection agencies to only send ONE letter to the debtor. the agency will send it to the address forwarded to them by their client. if the letter never reaches the debtor (for whatever reason), the agency is NOT required to send another letter. collection agencies are not billing institutions and it is not financially feasible for them to keep mailing out letters. and of course, debt evaders could keep on stating they never received the letter even if several were sent to the correct address. so, how do you validate a debt with a collection agency?
simple. follow the dispute procedures. according to federal law, if you send in a WRITTEN dispute of the charges, the agency must go back to the client to validate the debt. now the letter says within 30 days of receiving the letter, but any legit collection agency will accept disputes past that deadline. by putting your account in a dispute, it will cease all collection activity until a response is received from the client. if the debt comes back as valid, the collection agency will proceed with the necessary actions to collect the debt. your debt has just been validated. if the client states charges are not valid, case closed.
but, what if you want to see what you're being charged for? that is a different story and not technically part of the debt validation process. that is a customer service issue with the original creditor.
collection agencies do not always have access to past account history they are collecting on. in fact, very few (if any) do. once a debt is validated by the client, the debtor's record will be updated with the collection agency and notes will be entered into the computer system. the next time the agency calls back, they will be able to recite what the client said about the debt and why it's valid. now, getting back to finding out exactly what you're being charged for... odds are, the collection agency will not be able to help you. you can call the original creditor to find out, however they may advise you they no longer have the account and that you need to contact the collection agency that has it. doesn't sound good, huh? if the original creditor no longer has the account, why would they spend time talking to you about it? they're not. you probably won't get anywhere with them. but it's worth a shot. in any case, if the creditor can prove you owe the debt, you are still to pay the collection agency since they have the account. only onc company is allowed to solicit payment on a collections account at a time.
unfortunately there is no sure way of receiving a complete invoice of what you are being charged for in writing, outlining every single dollar you are being charged. accounts that have gone into collections are not treated with the same attention as current accounts that are being paid on time. it's too bad, but almost all debtors in collections are not given the benefit of the doubt.
hopefully i have given some insight as to the process, but like i said, there is no sure-fire way of ever receiving a proper validation. i believe others on this forum have a form which people can print out and mail to companies to validate a debt, but collection agencies are not required to provide all of the info on the form. furthermore, collection agencies don't even have access to some of that info.
if anybody has had success using other methods, by all means share them!
first, once an account has been placed with a collection agency, they are required - by law - to send a written notice explaining who they are, who they are collecting for and the amount they are trying to collect. it will also include the name, address and phone/fax # for the collection agency. there will also be something to the effect of 'if we don't receive written notice from you within 30 days to dispute the validity of the debt, it will be considered valid.' more on the 30 days limit later.
so let's say you get a phone call from a collection agency and you have no idea what it's for, you thought you paid the bill or you never knew you owed it in the first place. if you request a validation of the debt, odds are the agent will simply state a letter had been mailed out and that's all they are going to send. that is still within the law. it is practice for collection agencies to only send ONE letter to the debtor. the agency will send it to the address forwarded to them by their client. if the letter never reaches the debtor (for whatever reason), the agency is NOT required to send another letter. collection agencies are not billing institutions and it is not financially feasible for them to keep mailing out letters. and of course, debt evaders could keep on stating they never received the letter even if several were sent to the correct address. so, how do you validate a debt with a collection agency?
simple. follow the dispute procedures. according to federal law, if you send in a WRITTEN dispute of the charges, the agency must go back to the client to validate the debt. now the letter says within 30 days of receiving the letter, but any legit collection agency will accept disputes past that deadline. by putting your account in a dispute, it will cease all collection activity until a response is received from the client. if the debt comes back as valid, the collection agency will proceed with the necessary actions to collect the debt. your debt has just been validated. if the client states charges are not valid, case closed.
but, what if you want to see what you're being charged for? that is a different story and not technically part of the debt validation process. that is a customer service issue with the original creditor.
collection agencies do not always have access to past account history they are collecting on. in fact, very few (if any) do. once a debt is validated by the client, the debtor's record will be updated with the collection agency and notes will be entered into the computer system. the next time the agency calls back, they will be able to recite what the client said about the debt and why it's valid. now, getting back to finding out exactly what you're being charged for... odds are, the collection agency will not be able to help you. you can call the original creditor to find out, however they may advise you they no longer have the account and that you need to contact the collection agency that has it. doesn't sound good, huh? if the original creditor no longer has the account, why would they spend time talking to you about it? they're not. you probably won't get anywhere with them. but it's worth a shot. in any case, if the creditor can prove you owe the debt, you are still to pay the collection agency since they have the account. only onc company is allowed to solicit payment on a collections account at a time.
unfortunately there is no sure way of receiving a complete invoice of what you are being charged for in writing, outlining every single dollar you are being charged. accounts that have gone into collections are not treated with the same attention as current accounts that are being paid on time. it's too bad, but almost all debtors in collections are not given the benefit of the doubt.
hopefully i have given some insight as to the process, but like i said, there is no sure-fire way of ever receiving a proper validation. i believe others on this forum have a form which people can print out and mail to companies to validate a debt, but collection agencies are not required to provide all of the info on the form. furthermore, collection agencies don't even have access to some of that info.
if anybody has had success using other methods, by all means share them!
Tags