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Collection Letters' Bark Are Bigger Than Their Bite

June 15, 2012 | Comments: 0 | Views: 111

Are you worried about the countless collection letters that you are receiving from your creditors? If so, then you have come to the right place to find relief and get rid of all your worries.

Gone are the days where you will have to hide from creditors because they can physically assault you or do something bad against you or your family for not being able to repay a debt. These days, there are already laws prohibiting creditors from harassing you in order to collect a debt and previous collection practices which are unruly where replaced legitimate debt collection in the form of calls and collection letters.

If you have gotten yourself in debt and arrears chances are you are already receiving calls from collection agencies asking you to pay the money that you owe or you are receiving collection letters telling you to dispute your debt within 30 days otherwise it will be considered valid and you will be sued. In which case, don't worry too much. A collection letter's bark is bigger than its bite. Here is why.

A collection letter, also called as a dunning notice, is a letter sent to a debtor who has past due loans or debts requiring him to repay the balance or amount owed within a short period of time (usually 30 days) from the receipt of the letter. As such, it is not like summon or subpoena from a court which is sent to respondents in civil or criminal cases, requiring them to submit a counter - affidavit or to appear before the court so you don't have to worry too much. In fact, if you are continuously receiving collection letters time after time, the actual collection attempts will be delayed so you will not be receiving calls yet.

In addition to that, a collection letter may not come from your creditor in - house collection department so before you panic, you might as well consider debt validation. Validating a debt must be done before you agree to a settlement or you actually make a payment to make sure that your money will go to your creditor and not to a third party debt collector who may not be legally assigned to collect such debt or may have not legally purchased you account from your creditor. These situations are not impossible because of the technology that we have these days especially that some debt information can already be hacked and illegally purchased over the internet by some posers.

As such, here are some tips that you should and/or must consider when you are receiving or when you will be receiving collection letters in the future but do not try to get into debt as much as possible to avoid the hassles and have peace of mind.

Tip #1 Determine who actually sent the letter. Check whether it came from your creditor's in - house collection department, a local attorney, a third party debt collection agency or their attorney. If it came from people other than your creditor, make sure that those parties are legally assigned and authorized to collect from you by writing a dispute and asking them to validate the claim.

Tip #2 Validate the existence of the debt and the authority of the collecting party by asking them to provide proofs such as a copy of the original contract between them and your creditor showing that they are legally authorized to collect and that they have actually purchased your debt; a copy of the original contract between you and your creditor showing that you actually have an unpaid balance or you owe a certain amount; and your account statements.

Tip #3 If the collecting party will not be able to secure and provide these things to you and they fail to validate the debt them step back, relax and there are no reasons to panic so disregard the collection letter. Failure of a collection agency to validate your debt only means that they don't have the right or legal authorization to collect any amount of money that you allegedly owe.

Do you seek debt relief? If so, then you might as well consider reading about Debt Consolidation and Debt Settlement

Source: EzineArticles
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