Bill Collector Bad Debt Collection
A new scam against credit consumers involves debt collection agencies inventing past due bills and demanding repayment.
Some debt collection agencies are taking bill collecting to a new low... Inventing fake debt and trying to get money from consumers who don't even owe. According to The Consumerist, One such collection agency (Moreno and Woods), made up a debt and lied about a court judgment to get a consumer to pay $20,000.
Fortunately, the consumer knew her rights and asked all the right questions (like the court where the supposed judgment had been obtained). She also refused to give the collection agency information (like the last for digits of her social security number).
Don't let bad collection agencies pull a scam on you. Learn your rights, the collection agency rules, and how to make the collection agency prove to you that you owe the debt.
Make the Debt Collection Agency prove the debt: Under the Fair Debt Collection Practices Act (a federal law regulating debt collectors), you can request the debt collector to send proof of the debt. This process is called debt validation.
Within five days of its first communication to you (during the Debt Validation Period), the debt collector is responsible for sending you a debt validation notice. This notice should be in writing, letting you know you have the right to dispute the validity of the debt within 30 days. The FDCPA allows the collector to include the debt validation notice in the initial communication.
So, if the debt collector's first communication with you is by phone, you should receive a debt validation letter from them within five days. If the first communication is by letter, that letter might already include the debt validation notice; otherwise, you should soon get another letter including the notice.
If you don't dispute the debt in writing within 30 days, the debt collector has the right to assume the debt is valid. During the 30 day period, the collector can continue attempts to collect the debt from you until it receives your validation request.
How to Submit a Validation Request: To be valid, your request for debt validation must also be submitted in writing. You can dispute the entire debt, part of the debt, or request the name of the original creditor. After receiving your dispute, the debt collector cannot contact you until it has provided you with the requested information.
Submit your debt validation letter (see example below), preferrably in writing and via certified mail with return receipt requested so you have proof you mailed the letter and that the debt collector received it. If you have to file a lawsuit against the debt collector, the certified and return receipts will help strengthen your case. Note: If the letter comes back undeliverable, chances are the debt collector isn't legitimate.
After receiving your dispute, the collection agency must send you proof that it owns or has been assigned the debt by the original creditor. Verification that you owe the debt and the amount of the debt needs to include documentation from original creditor (however, it is the debt collector who sends it to you). It is not enough for the collection agency to simply send you a printout of the amount owed.
If the debt collector does not verify the debt within 30 days, it is not allowed to continue collecting the debt from you nor can it list the debt on your credit report. Should the debt collector list the debt on your credit report, you can dispute the debt with the credit bureau. Sending the credit bureau a copy of your debt validation letter along with the certified and return receipts will help get the account removed from your credit report.
Sample Debt Validation Letter
| Date
Your Name
Your Address
Your City, State Zip
Debt Collector’s Name
Debt Collector's Address
Debt Collector's City, State Zip
Re: Account Number
Dear Debt Collector:
This letter is sent in response to <phone call/letter> received by you on <date>. Pursuant to my rights under federal debt collection laws, I am requesting that you provide validation of this debt. Note this is not a refusal to pay, but a request that your offices provide me with evidence that I have a legal obligation to pay you.
You are hereby notified that if you do not comply with this request, I will immediately file a complaint with the Federal Trade Commission and the [your state here] Attorney General’s office. Civil and criminal claims will be pursued.
Sincerely,
Your Signature
Your Printed Name |
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