In these days of economic turmoil many are having trouble making ends meet. So many are barely able to buy food and keep the power on these days that they often flat out ignore those "non-essential" bills and collection notices because what else can you do?
Being unable to pay the bills is stressful and the natural tendency is to ignore them if you can't pay them esecially debts in collection, I know because I have been there! The problem is once you start ignoring the bills you'll begin to receive those dreaded collection notices. Collection notices can turn in to wage garnishments or judgments against you. They'll ruin your credit, impact your tax returns and they take many years to go away.
Fortunately I have good news for you. If you are receiving collection notices don't despair! There are many small steps one can take after receiving a collection notice that will not only cover your butt legally but will buy you more time to pay and will give the collector the opportunity to forfeit their right to collect the debt.
Upon receipt of the first collection letter from the particular agency you should write them back and dispute the debt because by law they must provide you with proof of debt owed before they can collect.
So many people simply ignore the first collection letter and thus forfeit their legal right to dispute the debt. Plus, not responding to the collection letter just provides legal grounds for the collector to further pursue the debt. It makes you look like you are refusing to take responsibility for the debt.
"You should ALWAYS dispute the debt. Even if you recognize the debt, even if you know you owe it, even if you feel a moral obligation to pay it, you should still dispute the debt. Disputing the debt doesn't mean that you are saying the debt isn't yours. It is simply requiring the debt collector to provide verification to you that the debt is yours. This is information that the debt collector is required to have by law in order to collect the debt, and so it should be very easy for them to provide it to you. Unfortunately, especially with older debt, the debt collector will not take the time or expense to either obtain this information or to respond to your letter, in which case by law they must cease all debt collection efforts."
Quoted from: http://www.indianaconsumerlawyerblog.com/2007/05/ind iana_consumers_should_put_d_1.html
After you dispute the debt the collector has 30 days to prove (in writing) that the debt is indeed valid. This gives you an extra month to come up with a little money to pay towards the debt if it is proved to be valid but chances are the collector will fail to respond within the allotted time.
If the collector does not respond and provide proof within 30 days they have no grounds to take legal action against you
(wage garnishments and fund levying). Additionally they must stop all debt collection efforts as a result of failure to prove the debts validity within the 30 days allowed. You will need to send them a "Cease Communication Letter to seal the deal.
This does not mean another collector can't come trying to collect the same debt, they might but if you take the time to dispute every single collection letter you receive you will save yourself money, hardship and you will also buy yourself time to come up with money to pay the debt off.
Here is a sample dispute letter for you to copy & paste. Just fill in your info, print it out and send it off to the collector. It is super easy and will save you in the long run!
Today's Date
Your Name
Home Address
Phone Number
Attention: {name of creditor or collector}
Name of Agency
Agency Address
Account Number: {account or reference number}
Dear Mr. /Ms.
I am writing in response to your (letter or phone call) dated {insert date}, (copy enclosed) because I do not believe I owe what you say I owe.
This is the (insert proper number) time I've disputed this debt. The first dispute was on {insert date} with {insert name of collection agency} and the second was on {insert date} with {insert name of collection agency}. Be advised that neither collection agency responded to my dispute.
In accordance with the Fair Debt Collection Practices Act, Section 809(b): Validating Debts:
(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.
I respectfully request that you provide me with the following information:
(1) the amount of the debt;(2) the name of the creditor to whom the debt is owed;(3) Provide a verification or copy of any judgment (if applicable);(4) Proof that you are licensed to collect debts in (insert name of your state)
Be advised that I am fully aware of my rights under the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. For instance, I know that:
because I have disputed this debt in writing within 30 days of receipt of your dunning notice, you must obtain verification of the debt or a copy of the judgment against me and mail these items to me at your expense;you cannot add interest or fees accept those allowed by the original contract or state law.you do not have to respond to this dispute but if you do, any attempt to collect this debt without validating it, violates the FDCPA;
Be advised that I am keeping very accurate records of all correspondence from you and your company including recording all phone calls and I will not hesitate to report violations of the law to my State Attorney General, the Federal Trade Commission and the Better Business Bureau.
I have disputed this debt; therefore, until validated you know your information concerning this debt is inaccurate. Thus, if you have already reported this debt to any credit-reporting agency (CRA) or Credit Bureau (CB) then, you must immediately inform them of my dispute with this debt. Reporting information that you know to be inaccurate or failing to report information correctly violates the Fair Credit Reporting Act 1681s-2. Should you pursue a judgment without validating this debt, I will inform the judge and request the case be dismissed based on your failure to comply with the FDCPA.
If you do NOT own the rights to collect this debt, I demand that you immediately send a copy of this dispute letter to the original creditor that you say I owe money too so they are also aware of my dispute with this debt.
Signature just above printed name
Your Printed Name
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For more debt collection resources out the following articles:
Actions speak louder than words, advice on debt collection. Credit Billing Act, do you know your rights?":http://../fair-credit-billing-act-do-you-kn ow-your-rights
Also, check out these helpful consumer info links:
Order your free (no this is not a scam, the FTC endorses it!) annual credit report now and keep tabs on your owed debts!Check out your states statute of limitations on debts here. After several years those debts are noncollectable and many people don't know about this.