When contacted by a debt collection agency, it’s a good idea to verify the debt before paying up. Here’s some advice from one Better Business Bureau about debt validation. Under the Fair Debt Collection Practices Act, consumers are entitled to debt validation.
Within 30 days of receiving a notice from a collection agency, you can send a verification request. It’s recommended to send a letter using registered return receipt mail so that you can show your letter was delivered. The agency is required to stop collection efforts after getting your letter.
A verification notice helps ensure that an agency is legitimate. It also lets you check if the debt belongs to someone else or has already been paid. Regardless of whatever scare tactics a scammer or uninformed collector tries to use, credit reporting companies can’t assign negative entries to you if the collector doesn’t have a validation.
Here are some things to keep in mind when dealing with a valid collection notice. First, check the statute of limitations to ensure the debt is still valid. When contacted by an agency, keep all documentation you are given and take notes about all calls. Keeping information related to a debt may help you settle a dispute if one arises. When speaking with a collector, it may be best to not disclose too much. The statute of limitations for collecting a debt can be reset when a person acknowledges their intent to pay or admits a debt is theirs.
For more information about dealing with debt collector harassment, contact us today.