Debt Collection Letters
Dealing With Unfair
Debt Collection Practices
Are you getting frustrated by debt collection letters or unfair debt collection practices? Well, there is something you can do about it.
First of all, you should know that the Fair Debt Collection Practices Act governs what a collection company can and cannot do when attempting to
collect a debt.
So you can use your credit rights to respond to debt collection letters and limit how credit collection
companies deal with you when collecting debts. However, it's best to deal with them in writing. This way,
they will recognize that you know your rights and it may cause them to censor their own behavior.
But even more importantly, you will
establish a written record of your communications with the debt collection agencies just in case you later decide to seek legal help.
Also, responding to a collection company's debt collection letters in writing can often help you
to legally improve your credit. This is especially true since new credit dispute regulations took
effect July 1, 2010.
These new credit rights grant consumers the right to dispute the reporting of
credit items directly with the furnisher of the information (e.g. debt collection companies or credit card companies). You're no longer
limited to filing credit dispute letters with the credit bureaus.
In addition, by responding to the debt collectors' debt collection letters in writing,
you can force the debt collection agencies to only contact you in writing and use the written
correspondence as documented support when later disputing your negative credit items with the credit bureaus.
For example, if the debt collection company fails to comply with the fair debt collection practices act,
any non-compliant credit item must be deleted from your credit report. Well, if you have thoroughly documented
your communications with the debt collection company, you can use the documentation as evidence to support your
claim that the debt collection company failed to provide you with proof that you owe the debt, in violation of the fair debt collection practices act.
As a result, you can then attach the documented communications to your credit dispute or demand for re-investigation
by the credit bureaus. The credit bureaus are then legally obligated by the Fair Credit Reporting Act to cease reporting of
the negative credit item until the collection company provides you with proof that you owe the debt.
Remember, legal credit repair is about requiring the debt collection companies, creditors and credit
bureaus to comply with the credit laws when reporting and furnishing your personal credit information.
As a resource for you, I have provided a few sample letters some credit repair organizations use.
You can consider these examples to develop your own letters when dealing with unfair debt collection
practices or in response to debt collection letters.
Debt validation letter
As soon as you receive a debt collection letter, you should send a debt validation request to
the debt collector. Per the Fair Debt Collection Practices Act, the creditors must show you evidence
that you owe the debt. Until they do so, they must cease and desist any collection activity, including
reporting the negative credit item to the credit bureaus. Word Doc
Cease and desist letter
You can consider this sample cease and desist letter to stop collection companies from calling you
at home and at work. You can limit the debt collectors to contacting you only by U.S. mail. Word Doc
Cease communication and harassment letter
If you're being harassed by a debt collector or experiencing unfair debt collection practices,
consider this sample letter. In some circumstances, it may be beneficial to demand the debt collectors
to cease communication without acknowledging the debt. Source: National Consumer Law Center. Word Doc
Get credit information and decide for yourself who to trust
to help legally improve your credit.