During the process of credit restoration, you might face a call from your debt collector who will try to collect a debt you might not be aware. In such a situation, you may not be prepared to deal with that debt at that time. If you encounter a situation like this, do not worry. Know that there is a strong and effective tool to deal with this. Just go ahead and request for a “debt validation letter”. Remember, making this request is within your rights and will help you save yourself from fraudulent claims. Know more about this here…
Explanation of the Debt Validation Process:
This is a legal process, which comes under the “Fair Debt Collection Practices Act”. This is a request being made by the consumer to the creditor asking for the proof that the particular debt collector has been allotted to collect the debt. This would also enable you to know the total amount you owe to the original creditor.
In general, the creditors will hire debt collectors to collect the unpaid debts for them after a particular period of time. In this, most of the debt accounts will be sold to the collection agencies because the creditors generally won’t have time and/or resources to collect the debt. These agencies will be specialized in recouping funds. However, they can’t utilize unfair collection strategies upon the consumers. But, several of these companies are seen using unfair practices in collecting the funds back. This is where the consumer protection laws come into play.
Therefore, don’t panic if you ever encounter such a debt collection call from these agencies. Before doing so, make sure you request a debt validation report from them and take every possible step to eliminate the debt should it not prove that you are legally responsible for paying the same.
For more about the debt validation process and for credit repair services, contact us today.