Writing a Legal Debt Validation Letter
All across America today, people are struggling to make ends meet and suffering with the burdens of debt during this time of economic recession. High interest rates and late fees are just two of the factors that contribute to getting stuck in credit card debt. If you’re finding yourself trapped in such a situation, you’re not alone in your struggles. And there are ways to pull yourself out of such debt and get on your way to financial independence once and for all.
One way to start the process is to consider writing a debt validation letter. If you’re being harassed by collection agencies, debt validation means just what it says – validating the amount of debt that is being attributed to your name. It is possible that the creditors or debt collection agencies are incorrect in their assessments of exactly how much you owe and even if you really owe it to their agency.
A legal debt validation letter, whether composed by yourself or a lawyer on your behalf, sets out to determine exactly how much money you owe and to whom. With regards to collection agencies, the right to validating your debt was put into law by the Fair Debt Collection Practices Act. “Original creditors” (such as credit card companies directly issuing credit cards) are not named in this law.
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What to Expect from your Debt Validation Letter
When you’re writing a debt validation letter, you will be seeking to gain clarifications regarding the specifics of the debt attributed to you. Most importantly, you will be seeking to find out whether or not the collection agency owns or has been assigned the debt. Second, the debt collector must be able to produce some account statements from your original creditor(s). In some cases, you can seek to have them report the exact amount(s) you are being asked to repay. And thirdly, you can also ask for a copy of the original credit card application or loan agreement that you signed (though, often, account statements fulfill this requirement).
In a debt assignment, the collection agency technically does not own the debt attributed to you, and therefore, you do not, in actuality, owe them anything. This is because there is no ownership (or “contract”) of the debt on their behalf. Only if it turns out that the company does own the debt are you are required to repay your debt(s) to that organization.
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In The Opinion of an Attorney
Most legal experts (including noted financial lawyers Carreon & Associates, located in Cypress, California) point out the importance of debt validation. You have a right to dispute the validity of any debt being claimed against you, particularly if you believe it to be in error. In such a case, the legal burden of proof rests on the debt collection company, not you.
Legal experts note that, in more cases than most people think, many collection agencies cannot prove that they do, indeed, own the debt that they are harassing you about. This is why debt validation letters are so important in establishing your rights when companies are trying to collect debts from you.