calculating debt to be paid

If you are interested in learning about any program we offer, just call: 1-877-766-2465 for a no pressure, no obligation consult, or visit: FREE CONSULTATION and leave your contact information.

In order for debt to be managed legally, there are obligations on the creditor as well as the debtor. These laws were created in order to achieve fairness in these types of transactions.

Both sides must live up to their obligation. In most cases the consumer is unaware of the laws and protection afforded them to remedy what can be a traumatic impediment on their lives.

In a previous article, we covered the benefits of using a debt validation letter when you receive a notification from a debt collector. By law the collector has to notify you that you are entitled to ask for a validation of the debt within 5 days of contacting you about you owing money.

There are defensive methods that can be applied that are best implemented by a reputable company with a full understanding of the law. This may include notification letters sent to the collection company or response to a legal threat against you.

If you find yourself in these circumstances, there are reputable programs designed to help the consumer navigate through the process and have their debt eliminated. This will help you obtain a much needed fresh start and provide you with an understanding and a clear path forward.

As a point of note, let me remind you that the debt collector has limited number of days to respond to the debt validation. What the response should contain is proof that you actually owe the debt. As well as proof that they have the legal right to collect the debt. Remember they are collectors, and you never borrowed anything from them. They must also prove that they are licensed to collect debts in your state. Also, they need to provide the original contract you signed with the original creditor, or at least credit card receipts that you signed.

If the collector completely fails to respond to the validation letter, again they have 30 days to do so, then legally they must cease collection efforts, and remove negative items placed by them on your credit report. If they have not responded, you need to send them a certified letter stating that they have failed to respond and to cease all collection efforts and remove any negative items they have placed on your credit report, or supply you with a letter stating that the negative items were placed on your report in error. That way, you can have the items removed by contacting the credit bureaus. If they ignore you, you can sue them in small claims court for violations of the Fair Debt Collection Practices Act.

Sometimes, after you have sent a validation request, the collector will send you back a “verification of the debt”. This is not a validation. In a verification the creditor will simply send you the name and address of the original creditor along with the amount owed. This is not what you want from them. You are entitles to a validation if that is what you requested.

As a final note, the collector cannot contact you to collect the debt while the validation process is on-going, so, be sure to monitor any calls you receive and log them. Since collection contact during this period is illegal, violations may be accrued under violation of the FDCPA.

If you enjoyed this article, please visit our blog to read more articles on similar topics. Also, if you need more information, then please get in touch with our team. Please note that we are not attorneys, and this article is not intended to be legal advice, but rather legal information.

If you are interested in learning about any program we offer, just call: 1-877-766-2465 for a no pressure, no obligation consult, or visit: FREE CONSULTATION and leave your contact information.

What Happens When A Collector Fails To Answer a Debt Validation Letter?

For debt to be managed legally, there are obligations on the creditor as well as the debtor. These laws were created to achieve fairness in these types of transactions.
Both sides must live up to their obligation. In most cases, the consumer is unaware of the laws and protections afforded them to remedy what can be a traumatic impediment to their lives.
In a previous article, we covered the benefits of using a debt validation letter when you receive a notification from a debt collector. By law, the collector has to notify you that you are entitled to ask for a validation of the debt within 5 days of contacting you about your owing money.

Understanding Debt Validation And Verification

If you have received multiple notices of debt from a debt collector yet no response for the debt validation letter you sent back, this article is just what you need. You are not liable to pay debts that the collector is unable to validate, and if you feel overwhelmed by the mounting dues in your finances, debt invalidation services may be just what you need.
Here are a few things to know if your debt validation letter has not been answered.

How Long Does A Collector Have To Validate A Debt?

Usually, a debt collector will take around 1–30 days to respond to your request for debt validation service. However, debt collectors don’t have a deadline to respond to a debt validation letter, and they may take days, weeks, or even months before getting back to you. Until they do, though, you’re free to not pay the debt.

The FTC’s Fair Debt Collection Practices Act gives the collector the authority to keep a person in a state of uncertainty as long as the statute of limitations has run. If a debt collector has not yet sent a written notice to a consumer about the debt details, such as the amount, the type of debt, and the payment history, it must do so within five days.
Unless the consumer has received a notice within thirty days after the transaction, the debt will be presumed to be valid. If the consumer disputes the debt, the debt collector will obtain a copy of a judgment or verification of the debt. The consumer will also receive a copy of the judgment or verification in the mail.
A debt collector will then provide the consumer with the address and name of the original creditor.
debt collectors estimating outstanding debts

Disputed debts

If the consumer disputes the debt, the debt collector must cease collection of the debt or any portion thereof until it has obtained a copy of the judgment or verification of the debt. The consumer’s request for the original creditor’s name and address will be sent to the debt collector.
Any collection activities that are not related to the dispute should not occur within 30 days. If a consumer fails to dispute a debt, then the failure to do so may not be regarded as an admission of liability by a court.
The FTC defines communication as a formal pleading in a civil action. This means that a consumer’s formal pleading in a civil action does not count as an initial communication. The FTC also sets various deadlines for debt collectors. One of these is that the debt collector must provide five points of information within five days of its first contact with the consumer.
Unfortunately, this section of the FTC’s regulations allows debt collectors to take as long as they want to respond to a consumer’s request for validation. If the collector does not provide validation within five days, then there’s a chance that the consumer could sue them for $1,000.
Unless the consumer disputes the debt within 30 days after receiving the notice, the collector will assume that the debt is valid. If the consumer disputes the debt, the debt collector will provide the consumer with a copy of the judgment or verification of the debt within 30 days.
The debt collector will then provide the consumer with the address and name of the original creditor. After receiving the notice, the consumer must then send a letter to the debt collector asking for validation of the debt. This step is very important since the debt collector will assume that the debt is valid.
The debt collector will then provide the consumer with the address and name of the original creditor. After receiving the notice, the consumer must then send a letter to the debt collector asking for validation of the debt. This step is very important since the debt collector will assume that the debt is valid.

How Long Does A Debt Collector Have To Validate A Debt?

The debt validation period can last for several weeks or even months. Since the statute of limitations on the debt has already run out, the only date that matters is when the debt collector must respond.
Even if the collector didn’t respond to your validation letter, you could still use the lack of response as proof that the debt is your responsibility. Unfortunately, if the debt collector doesn’t respond to your validation letter, then they might not be able to continue pursuing the debt. They need to come up with proof of the debt to stop the collection efforts.
If the debt collector doesn’t respond to your validation letter, it’s a violation of the Fair Debt Collection Practices Act (FDCPA). You can also report the debt collector’s failure to the various consumer protection agencies. However, if the debt collector stops trying to collect the debt, then it’s not a violation of the law.
Keep track of all communication between the debt collector and the consumer. This will allow you to take legal action against the debt collector if necessary. Most debt collectors will typically stop working on the validation process once they realize that they don’t have the time or resources to waste it. In most cases, they will simply stop chasing the debts.
If a debt collector continues to try to collect the debt, then you have a right to sue the company for up to $1,000 for each violation.

Can The Collector Sue You?

debt collector calculating pending debts
The first step in responding to a debt lawsuit is to send a copy of the complaint and the answer to the opposing attorney. If you don’t respond within 30 days, the court may issue a default judgment against you.

There are defensive methods that can be applied that are best implemented by a reputable company with a full understanding of the law. This may include notification letters sent to the collection company or a response to a legal threat against you. If they ignore you, you can sue them in small claims court for violations of the Fair Debt Collection Practices Act.

If you find yourself in these circumstances, there are reputable programs designed to help the consumer navigate through the process and have their debt eliminated. This will help you obtain a much-needed fresh start and provide you with an understanding and a clear path forward.
As a point of note, let me remind you that the debt collector has a limited number of days to respond to the debt validation. What the response should contain is proof that you owe the debt. As well as proof that they have the legal right to collect the debt. Remember, they are collectors, and you never borrowed anything from them. They must also prove that they are licensed to collect debts in your state. Also, they need to provide the original contract you signed with the original creditor or at least the credit card receipts that you signed.
If the collector completely fails to respond to the validation letter, again, they have 30 days to do so, then, legally they must cease collection efforts and remove negative items placed by them on your credit report. If they have not responded, you need to send them a certifi9ed letter stating that they have failed to respond and to cease all collection efforts and remove any negative items they have placed on your credit report, or supply you with a letter stating that the negative items were placed on your report in error. That way, you can have the items removed by contacting the credit bureaus. If they ignore you, you can sue them in small claims court for violations of the Fair Debt Collection Practices Act.
Sometimes, after you have sent a validation request, the collector will send you back a “verification of the debt.” This is not a validation. In verification, the creditor will simply send you the name and address of the original creditor along with the amount owed. This is not what you want from them. You are entitled to validation if that is what you requested.
As a final note, the collector cannot contact you to collect the debt while the validation process is ongoing, so be sure to monitor any calls you receive and log them. Since collection contact during this period is illegal, violations may be accrued under violation of the FDCPA.

If you enjoyed this article, please visit our blog to read more articles on similar topics. Also, if you need more information, then please get in touch with our team. Please note that we are not attorneys, and this article is not intended to be legal advice but rather legal information.

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