Things You Must Learn About a Debt Validation Letter
Throughout the recent years in the credit card debt collection industry, two types of letters have been confused on a regular basis. The first is debt validation letters, which provide consumers with extremely valuable protection against unwarranted collection efforts by both creditors and debt collectors. The second letter is a debt verification letter, which provides little if any protection to any consumers. Do not get these letters confused!
So why are debt validation letters so important. Lets start explaining this by looking at the crazy history of the credit card debt collection industry. In the past, companies in this industry have collected on thousands of accounts while having no right to do so. The government passing litigation against these practices eventually stopped these phony collection companies.
Soon after these outrageous collection companies began making all sorts of illegal collections, the United States Government passed the FDCPA or Fair Debt Collection Practices Act. This Act provides the legal power that supports the use of debt validation letters and stops unethical collection agencies from making illegal collections.
Most people do not want to risk a lawsuit, especially a federal lawsuit. Creditors and debt collectors are the same way. After receiving a properly timed and well written debt validation letter, a creditor or debt collector must provide the information requested or cease all collection efforts immediately. If they choose to proceed with the collection process they are risking 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.
Why when creditors and debt collectors attempt to look so ethical and professional would they not inform you of the protection offered by the Fair Debt Collection Practices Act? The answer is simple, they want you to pay them money whether you legally owe it to them or not. If a creditor or debt collector is not receiving monthly payments, they then run the risk of going out of business. Because of this they are totally fine leaving people like you and me in the dark when it comes to our rights. Don’t let this happen to you!
So how can you use debt validation letters to protect yourself today? Simple, you need to become an expert. This may seem overwhelming to you but trust me it is not that hard. The easiest and most effective way to gain this expertise is through the use of well-written debt validation letter templates. These template letters can help you eliminate unwarranted collection efforts altogether.
Discover more information about how to settle credit card debt. Stop by Allan Henry’s site where you can learn all about debt validation letter and what it can do for your finances.
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