debt verification: Your first step toward credit restoration

debt collectors might seem like they’re attempting to help, but the good cop, bad cop routine is a smokescreen for a lack of scruples. They want money, and they’ll bend or break the rules to get it. Thus, the consumer’s defense is to request that a debt collector verify debt on paper to confirm its legitimacy. Post resource – Demand that debt collectors verify your debt before paying by MoneyBlogNewz.

Getting validated debt

A great example is given by Bankrate.com that helps somebody determine how to get validated debt from a debt collector. The mortgage on a home is in both names of a couple. The woman has $30,000 in charge card debt in just her name in collections. She is considering filing for Chapter 13 bankruptcy, but the couple is concerned about losing the house in the deal.

The couple may need an attorney to work out some of the potential complications that might occur. Still, homes are usually not at risk in Chapter 13 and Chapter 7 bankruptcies.

Be more aggressive than the debt collector is

Get every little thing on paper when dealing with debt collectors. Whenever they want automatic payments, do not give them your bank account information. Demand the debt collector provide a fax number or address to which you are able to submit a request for debt validation. Simultaneously, dispute the debt in question.

By demanding debt verification, you’re demanding that the debt collector prove that you owe the money, the collector has the legal right to collect and that the original business that held the account is clearly identified. In case the collector doesn't actually have any information or if it’s wrong, you are ahead when you dispute the debt. Few things are as fruitless as giving money to a collection company that might not even own your account.

Check your rights out

Under the Fair Debt Collection Practices Act, a consumer has the right to force a debt collector to validate a debt. Tom Martin is a lawyer at the Price Law Group. He claims the law states the collector cannot continue to harass people for debt if they can't prove this. If the collector continues, the consumer may even be entitled to monetary damages. That's not it though:

“If a debt collector receives a dispute from a consumer, and the debt collector has been reporting the consumer’s account to the credit bureaus, the collector must also start reporting the account as disputed,” Martin reminds.

The consumer is part of the "get it in writing" directive. If any debt payments are made, receipts and statements should be kept as proof in the event of a lawsuit.

Citations

Bankrate

bankrate.com/finance/debt/demand-debt-verification-before-bankruptcy.aspx

Fair Debt Collection Practices Act

ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf

Lawyers.com

lawyers.com/Bankruptcy/browse-by-location.html

U.S. Courts

uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Chapter13.aspx

What happens when you’re drowning in debt?

youtube.com/watch?v=GTudZEujvIo