If you’re drowning in debt and need major credit repair, do not automatically assume that debt collectors have your best interests at heart. debt collectors want money, and often they’ll go to unconscionable lengths to get it. Thus, the consumer’s defense is to demand that a debt collector verify debt in writing to confirm its legitimacy. Post resource – Demand that debt collectors verify your debt before paying by MoneyBlogNewz.
Bankruptcy scenario with debt validation
Want a debt collector to validate debt? It should be something somebody demands for as bankrate.com shows in a situation. A couple has a home with a mortgage that is in both their names. Collections have $30,000 in debt from the woman. This is all of credit card debt. The couple is worried they’ll lose their home while the woman is considering filing for Chapter 13 bankruptcy.
Bankrate explains that a home is typically okay in both a Chapter 13 and Chapter 7 bankruptcy although there are other potential complications that an attorney may be needed for.
Debt collectors could be scared of you
Get everything on paper when dealing with debt collectors. Don’t expose bank account information when they push to set up automatic payments. Demand that the debt collector provide a fax number or address to which you can submit a request for debt validation. You are able to dispute the debt at the exact same time.
The debt collector has to prove that you own money, which the original business is that held the debt and those they have the right to collect from you when you request debt verification. In case the collector doesn't really have any information or if it is wrong, you are ahead whenever you dispute the debt. Few things are as fruitless as giving money to a collection business that might not even own your account.
Check your rights out
Under the Fair Debt Collection Practices Act, a consumer has the right to force a debt collector to validate a debt. Lawyer Tom Martin of Price Law Group says that if debt collectors fail to comply, they cannot legally continue to harass a consumer for payment. The consumer can sue if the collector continues. That's not it though:
“If a debt collector receives a dispute from a consumer, and the debt collector has been reporting the consumer’s account to the credit bureaus, the collector must also start reporting the account as disputed,” Martin reminds.
The directive to "get it in writing" isn't only for the collector. The consumer must also comply. If any debt payments are made, receipts and statements should be kept as proof in the event of a lawsuit.
Citations
Bankrate
bankrate.com/finance/debt/demand-debt-verification-before-bankruptcy.aspx
Fair Debt Collection Practices Act
ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf
Lawyers.com
lawyers.com/Bankruptcy/browse-by-location.html
U.S. Courts
uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Chapter13.aspx
What happens when you’re drowning in debt?
youtube.com/watch?v=GTudZEujvIo
1 comment:
Debt collectors are only interested in collecting money from the consumers. They try various methods to collect money from the consumers. This is why if a collector calls you regarding a debt, then you should ask them to validate the debt in writing. As per the FDCPA laws, the collectors can't contact or call you if they are not able to validate the debt. If you think that the debt collector has not been able to validate the debt properly, send a Cease and Desist letter to him.
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