Why is a debt verification letter required?

These letters are designed for consumers' safety. Prior to any money changing hands, collectors must prove that their debts are legal. Demanding verification of debt is a fast and legally known way to establish legitimacy before you move forward to negotiate with a debt collector. A debt collector acquires your request; they have to stop all kinds of conversation with you until they’ve responded with a debt verification letter. That signifies no phone calls, no letters and no reporting your debt to the credit bureaus.

It is what a debt accumulator sends you to claim that you owe them money. This letter indicates to you the particulars of a specific debt, profiles what you owe, who you owe it to, and when they need you to pay back. Lawfully, a debt accumulator has to send you a debt verification letter between five days of their first contact with you. However if not, you would ask for one. Why? Since it supports you, decide if the debt is really yours and if there’s anything suspicious going on behind the scenes. Only because it looks professional doesn’t mean it’s your expense to pay.

Keep in mind when you request your letter, have it in writing and send it by official mail. But keep in mind to get a return receipt. In 2020, the Federal Trade Commission (FTC) acquired around 82,700 complaints from consumers about debt accumulators, and a massive 49% of those complaints were to report approaches to collect debt they didn’t owe. And that is exactly why you need a debt verification letter.

There is a possibility that your debt may not even be real or your debt may be years old, sold, resold and resold some more. Creditors sell outstanding debts to collection organizations who then release their hounds to chase after you. Moreover these agencies don’t have the best record-keeping expertise. Faults happen and errors are general. If you just need to move forward and pay the debt without demanding a debt verification letter, you could end up:

  1. Paying the amount you don’t owe
  2. Restoring debt past the statute of restrictions or the amount of time a creditor can validly come after you for a debt
  3. Falling prey to a debt collection frauds

What a debt verification letter report?

At the time you receive your debt letter, it should list these numerous things, including:

  1. What amount do you owe?
  2. What creditor the collector is describing?
  3. A possibility to argue the amount of the debt within 30 days after that, the debt will be considered valid.
  4. Verification that if you argue the debt within 30 days, your debt will be confirmed by mail within another 30 days
  5. You need a statement signifying that if you demand more details about the original creditor, then the debt accumulator or agency must provide it within 30 days of the period.

For more details on debt verification letter, visit https://lendinglies.com/

Read more:

What is a debt verification letter?

How to file a cfpb complaint?

What to Do if you Receive a Debt Verification Letter?

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