How To Use Debt Validation To Fight Collection Agencies
February 28th, 2010
There are many collections agencies in the credit world that use unscrupulous methods to collect money owed on a debt. Sometimes these debts are marked up to as much as 150% of the original amount in question. They are against the Fair Credit Reporting Act, but they must be challenged in a court of law to be removed from your credit reports. Until such time as the court sees fit, they can do irreparable damage to your credit rating and create havoc in your financial life.
Many times the original debt is a minimal amount. However, once the debt has been charged off your account can be sold to a collection agency. At this point, the purchaser of the debt can mark up the total amount in order to make a profit. This often comes under the guise of fees, interest rates and penalties. LVNV is one such collection agency whose business practices and collection process are questionable and who use derisive tactics for collection.
Protect yourself against the scurrilous actions of the collection agency by asking for detailed information and collection of facts. This can be accomplished by writing a letter of debt validation which you can use in a court of law.
Why use debt validation? Because the collection agency may not even be legally entitled to collect the money from you. You have certain rights and are protected by legislation enacted under the FDCPA (The Fair Debt Collection Practices Act.) This will protect you in times of trouble. FDCPA does not protect you from the original creditor such as credit card companies. If you owe the money, you have to pay it There are also statute of limitations on the debt owed, so it is wise to take the steps of writing a letter to begin your process of debt validation.
Your letter should be send to all credit reporting agencies, and mailed via certified mail with return receipt requested. There are several questions which are key that you must ask, and request certain information. Inform them the collection agency is reporting erroneous information and that you want it either deleted or corrected on your report. They are violating your rights and it needs to be corrected immediately.
Write to the collection agency as well by certified mail, return receipt requested. Ask them to provide with information regarding the amount of the debt, what calculations they used. This will show the amount of the original debt and their fees, etc. Get proof of contracting for the debt, proof the statute of limitations has not run out. If it has, they are no longer able to collect on the debt. Ask for their licenses and by what authority are they licensed to collect in your state.
I Freed Myself from the Lvnv Funding Collection Agency. See How I Did it at www.lvnvfundingcollection.com
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