What are the three things debt collectors need to prove?
Any time a collector attempts to collect a debt, you have the right to ask them to send proof of that debt, the amount they claim you owe, and their legal ability to collect the debt from you.
By following the three Cs — communication, choice and control.
Ask the caller for their name, company, street address, and telephone number. If your state licenses debt collectors, you can also ask for a professional license number.
A debt validation letter is a letter that debt collectors must provide that includes information about the size of your debt, when to pay it, and how to dispute it. A debt collection letter essentially proves you owe the debt collector money.
Debt collectors cannot harass or abuse you. They cannot swear, threaten to illegally harm you or your property, threaten you with illegal actions, or falsely threaten you with actions they do not intend to take. They also cannot make repeated calls over a short period to annoy or harass you.
If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
The 7-in-7 rule explained
Collectors are permitted to place a call to the consumer about a particular debt seven (7) times within a period of seven (7) consecutive days, so long as no contact is made with the consumer in any of the attempts.
- Be smart about how you communicate. Debt collectors will continue to contact you until a debt is paid. ...
- Get information on the debt. ...
- Get it in writing. ...
- Dispute a debt that isn't yours. ...
- Try settling or negotiating.
- Be Prepared. ...
- Document Everything. ...
- Don't Assume Anything. ...
- Be Pleasant and Control Yourself. ...
- Avoid Confrontation and Manipulation. ...
- Put a Stop to Anger or Harassment. ...
- Give Options. ...
- Recap the Terms.
Don't provide personal or sensitive financial information
Never give out or confirm personal or sensitive financial information – such as your bank account, credit card, or full Social Security number – unless you know the company or person you are talking with is a real debt collector.
Do debt collectors have to prove you owe?
If you don't think you owe the debt
If you receive a validation notice, the end date of the 30-day period will be specified. Once you've disputed the debt, the collector can't call or contact you to collect the debt until they've responded with verification of the debt.
Review your credit reports from all three major credit bureaus – Experian, Equifax, and TransUnion. Look for any discrepancies between the reported debt and your own records. If the debt does not appear on your credit report or contains errors, it strengthens your case of proving the debt is not yours.
A debt validation letter is what a debt collector sends you to prove that you owe them money. This letter shows you the details of a specific debt, outlines what you owe, who you owe it to, and when they need you to pay.
If the collection agency failed to validate the debt, it is not allowed to continue collecting the debt. It can't sue you or list the debt on your credit report. Why request validation, even if you're ready to pay and you know it's your debt? Simple.
A Proof of Debt (POD) is a form completed by a creditor which details how much the creditor is owed. Creditors can be invited to lodge a POD in a bankrupt estate should the trustee expect a dividend to be paid. A POD includes supporting information to prove the debt is owed.
- Use of threat, violence or other criminal means to harm a person, reputation or property.
- Use of obscene or profane language.
- False representation that the debt collector represents a state or federal government.
Lack of current information on debtors. Difficulty identifying and contacting debtors. Difficulty in accessing the most valuable information. Takes too long to locate debtors when sorting through all the data.
Importantly, people can sue debt collectors who break the law by lying or providing wrong information. The Consumer Financial Protection Bureau is the administrator and a primary enforcer of the Fair Debt Collection Practices Act. We are committed to making sure that debt collectors follow the law.
The 609 dispute letter is often referred to as the “legal loophole”, or the “credit repair secret' and can be useful in different situations. Apart from correcting your credit report, the 609 letter could be what you need to respond to a debt collection lawsuit.
A debt trap means the inability to repay credit amount. It is a situation where the debtor could not be able to repay the credit amount.
How do I get out of collections without paying?
You cannot remove collections from your credit report without paying if the information is accurate, but a collection account will fall off your credit report after 7 years whether you pay the balance or not.
FAQ on Credit Control: Prioritising Collections
The trick is to know how to plan invoice collection. Use the Pareto Principle (80-20 rule); that is, often 20% of your customers will account for 80% of the overall money owed to you.
Debt collectors are prohibited from contacting you if you request, in writing, for them not to do so. To be free from harassment. The Federal Fair Debt Collection Practices Act requires that you be treated fairly without harassment. Visit dfpi.ca.gov/get-help to connect to resources related to this legislation.
They gave you the money, and you should pay. The same is true even if the debt is sold and belongs to someone else. However, you have every right to dispute the debt if details are lost during the transition from the original creditor to the debt collection agency.
You have two tools you can use to dispute a debt: first, a debt validation letter the debt collector is required to send you, outlining the debt and your rights around disputing it; then, a debt verification letter. You can submit a written request to get more information and temporarily halt collection efforts.
