News :Debt and Collections

Just as the FCRA regulates the reporting agencies and sets
out consumer rights in reporting credit and scores, the Fair
Debt Collection Practices Act (FDCPA) was established to reg-
ulate collection practices and sets out the rights of people
subject to collection activities.

Few of us really know what are rights are when it comes to
dealing with heavy handed collectors. The FDCPA provides
for consumers to demand that collectors 'validate' the debt
they are attempting to collect before collectors can demand
payment. Validation includes proving that the collection
agency has the right to collect a debt as well as proving
that the original debt was in fact yours.


Although many collectors may attempt to begin collections
immediately upon gaining a new debt account the law holds
that they must first provide you with this proof before a
collection request can be made.

A revie! w of the FDCPA and related casework is very helpful
in providing the tactics to shut down a collection attempt.
Much like disputing reports with the credit reporting ind-
ustry, collections can be disputed and often successfully
thwarted by a validation demand which disputes the right of
the collector to collect and demands written proof that the
debt actually belongs to you.

Thinking of Settling?

If you seek to make a settlement agreement with a collector
you may want to start your offer at about 25% of the original
debt. Note that the collector may have paid as little as .06
or .07 cents for every buck owed.

More Tips:
-Never talk to a collection agency on the phone.
-Get your deal in writing before you even think about paying.
-Keep good records.
-Post your letters receipt requested via registered mail.
-Keep a copy of everything.
-If you call (Why are you calling! ?), keep a log of when, and
who you spoke with.
-Fo! llow up all phone correspondence (again, why are you calling?)
with a registered letter.
-Penalties and extra interest are bogus fees added on by the
collection agency.
-Time is on your side.
-Never appear too eager to settle
-Don't Forget; negotiate your credit rating before you accept
any deal.

Thanks To :
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