Debt validation letters and debt verification letters are two types of letters that are used in the credit card collection industry. These two letters are completely different. Debt validation letters can be used to provide many consumers highly desired protection from unlawful collection attempts from both creditors and third party debt collectors. Debt verification letters, on the other hand, rarely if ever provide protection to any type of collection efforts.
Before you can understand why debt validation letters are so important, you need to know a little bit about the history of the credit card debt collection industry. The credit card debt collection industry has not always been very ethical. Companies would use harassment and intimidation to trick people into paying on their defaulted debt to companies that they did not owe money. Eventually, legislation was passed to prevent some of these practices.
The power of debt validation letters lies in the FDCPA or Fair Debt Collection Practices Act. The United States Government passed this act in order to counteract all of the illegal collection efforts that were being made across the country. Without this Act consumers would have very little legal protection from these unethical collection companies.
Debt validation letters have the most effect when sent timely and with the proper composition. Once a creditor or debt collector receives one of these letters they are left with three choices. One, they can validate the account and continue the collection process. Two, they can stop all collection efforts. Three, they can chose not to validate the account and continue collection attempts running the risk of a federal lawsuit.
The FDCPA and debt validation letters do provide great protection against fraudulent collection efforts made by creditors or debt collectors. However, this protection is not automatic. What I mean by this is that for the protection that is offered by the FDCPA to come into full effect, you must request the validation yourself.
Here is another interesting fact for you. Third party debt collectors are most exposed by the Fair Debt Collection Practices Act. The reason being that they have very little of the information that the FDCPA requires to validate debt. Does it make more sense to you now why third party debt collectors rely so much on intimidation and rarely if ever sue the people that they are attempting to collect on? If you are dealing with a third party debt collector, you need to send a well-written debt validation letter immediately!
Now that I have shared with you all about debt validation letters, you need to know how to write and send these letters yourself. The easiest way to gain this understanding is to find quality debt validation letter templates. Once you have these you can send them off and enjoy your journey to becoming free of your creditors or debt collectors!
Before you can understand why debt validation letters are so important, you need to know a little bit about the history of the credit card debt collection industry. The credit card debt collection industry has not always been very ethical. Companies would use harassment and intimidation to trick people into paying on their defaulted debt to companies that they did not owe money. Eventually, legislation was passed to prevent some of these practices.
The power of debt validation letters lies in the FDCPA or Fair Debt Collection Practices Act. The United States Government passed this act in order to counteract all of the illegal collection efforts that were being made across the country. Without this Act consumers would have very little legal protection from these unethical collection companies.
Debt validation letters have the most effect when sent timely and with the proper composition. Once a creditor or debt collector receives one of these letters they are left with three choices. One, they can validate the account and continue the collection process. Two, they can stop all collection efforts. Three, they can chose not to validate the account and continue collection attempts running the risk of a federal lawsuit.
The FDCPA and debt validation letters do provide great protection against fraudulent collection efforts made by creditors or debt collectors. However, this protection is not automatic. What I mean by this is that for the protection that is offered by the FDCPA to come into full effect, you must request the validation yourself.
Here is another interesting fact for you. Third party debt collectors are most exposed by the Fair Debt Collection Practices Act. The reason being that they have very little of the information that the FDCPA requires to validate debt. Does it make more sense to you now why third party debt collectors rely so much on intimidation and rarely if ever sue the people that they are attempting to collect on? If you are dealing with a third party debt collector, you need to send a well-written debt validation letter immediately!
Now that I have shared with you all about debt validation letters, you need to know how to write and send these letters yourself. The easiest way to gain this understanding is to find quality debt validation letter templates. Once you have these you can send them off and enjoy your journey to becoming free of your creditors or debt collectors!
About the Author:
Discover more about how to settle credit card debt. Visit Allan Henry's website where you can find out all about debt validation letter and what it can do for you.
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