Do not ignore the letters and phone calls from the collection agencies. It is a serious matter if you are contacted by debt collectors. Pay attention and take action against the collection debt. It is not a regulated industry which uses many tactics to collect and they are not regulated on their methods of collection. You cannot wish this away. The situation could become worse and evolve into a legal matter from ignoring the letters. It takes a few easy steps to eliminate the collection debt.
This could become worse and become a legal situation. Some debt collectors are well known for suing the consumer for small amounts. There is always a possibility of being sued. It is serious when you receive a “dunning” letter from a collection agency. It is time sensitive and you have 30 days to respond. This is law. The collection agency would not be able to validate even past the 30 day limit. Best to stay within the parameters of the guidelines. If you were sued, it is doubtful that the collection attorney could validate the alleged account.
Take these steps immediately when a collection letter is received:
1.Write to the debt collector asking for Validation of Debt (VOD)
2.Send certified mail and return receipt
3.Keep organized correspondence
The collection agency, according to the FDCPA, has 5 days to respond with validation. In a week or so, the letters and calls should cease. Repeat the steps, if you are contacted by another collection agency. The account may be sold over and over. Eventually, the collection efforts will stop. You should not be contacted about the alleged debt. The item can be removed from your credit report since the collection debt is eliminated.
Learn more about collection debt. Stop by Barbara Thompson’s site where you can find out all about debt elimination and what it can do for you.
Tags: collection debt, credit, Debt, debt elimination, finance, self help