Discover How To Use a Debt Validation Letter
Many consumers wonder what a debt validation letter is. They are often confused with debt verification letters even thought they are both quite different things. Debt validation letters when used correctly provide many consumers protection from creditors or debt collectors that are attempting to collect on their credit card accounts.
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.
Now that you realize a little bit about your creditor or debt collector, I am sure you are beginning to see why they try to keep you away from knowing about debt validation. You may be thinking that there is no way that such corruption happens on a daily basis, but I can assure you that it does. Credit card debt collection could not be as large of an industry as it is now without the corruption because the majority of third party debt collectors do not have the information required by the FDCPA to collect on any accounts.
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!
Discover more about how to settle credit card debt. Stop by Allan Henry’s website where you will find out all about debt validation letter and what it will do for you.
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