THE NO JOB LIFESTYLEBefore you write
Find the collector's first written notice. Federal rules require it to include the amount, the creditor's name, an itemization and instructions for disputing. Write down the date you received it and the last day of your 30 day window. If you never got a notice, or only a phone call, ask for one in writing. Avoid giving out personal details on the call.
Next, check who you are dealing with. Search the agency's name on the Consumer Financial Protection Bureau complaint database and through your state's licensing office, if your state licenses collectors. Scammers sometimes pose as agencies, and a real collector should be able to give its name, address and license details when asked.
What to ask the agency for
- The amount claimed, plus how interest and fees were added.
- The name and address of the original creditor.
- Records connecting the debt to you, such as a statement in your name.
- The date of default or last payment, to help you check age.
- Proof that the agency is authorized to collect it, and any license number required in your state.
- A written reply to your mailing address.
The law clearly requires verification and the original creditor's name on a timely request. The other items are fair to ask for, but an agency may not supply them all.
Rules the agency must follow
Under the FDCPA and Regulation F, an agency cannot use threats or deception, cannot call before 8 a.m. or after 9 p.m. your local time, and cannot generally call more than seven times in seven days on one debt. It cannot discuss your debt with most third parties. You can also tell it in writing to stop contacting you, after which it can only confirm that it will stop or give notice of a specific action.
Stopping contact is different from validating. A stop letter does not erase the debt, and the collector can still sue. If you want proof first, send the validation request first.
After the agency replies
Compare the verification with your records. If the account is not yours, the amount is wrong or the debt is past the reporting period, dispute it with the bureaus and send them a copy of the response. If the debt is yours, you may choose to settle or pay. Get all terms in writing before you send any money, and never give direct bank access.
If it does not reply, keep your proof of mailing. Any further collection without verification may violate the law, and you could report this to the Consumer Financial Protection Bureau, the Federal Trade Commission or your state attorney general. Many consumer attorneys offer free consultations for FDCPA cases, since the law allows successful consumers to recover attorney fees.
Questions people ask
Does the letter apply if the agency bought the debt?
Yes. Debt buyers that collect from you usually count as debt collectors under the FDCPA, so the validation rights generally apply.
Should you pay while waiting on verification?
Generally no. Hold payment until you see the verification, unless you have a court deadline or reason to act sooner.
What if there are two agencies for one debt?
Send each a separate letter. Debts get reassigned, and each new collector's first notice starts a new 30 day period to dispute with that collector.