When a debt collector contacts you, you have the right to ask questions or request for more information regarding that debt; this is called debt verification. Whenever a debt collector contacts you, the first thing you want to do is verify the debt by requesting all the information you need regarding that particular debt collection; you have legal rights to do so. All debt collectors must follow the federal regulations that govern debt collection.
Debt verification was imposed by the FDCPA (Fair Debt Collection Practices Act). This law was formulated to enable consumer requests for any critical information regarding any debt that will be collected; it’s also a resolution system between collectors and their consumers. There are a lot of situations where you have to request information regarding a debt; some of these instances include the following;
- When you don’t remember or recognize the debt in question.
- When you’re in doubt about the amount that’s to be collected or wholeheartedly believe, there is some error in that debt collection amount. This also applies when you know that you have partially settled some of the debt, and there are incorrect charges to your mortgage that need to be corrected.
- When you believe you’re not the only person entitled to paying that debt,
- You should verify that the collector owns the debt and has the right to come and collect the debt from you.
It’s the responsibility of any debt collector to provide all the necessary information for the debt they wish to collect if they don’t provide such information you must ask for it. It’s not every question you can request from a debt collector, only the necessary details that pertain to such a loan. Whether you own that debt or not, you still have the right to verify such credit; this is imposed by the FDCPA; the debt collector doesn’t have the right to know why you want to check and verify the debt.
When To Verify A Debt
There is a time called the verification period. During this time, you’re allowed to request all the information you want regarding any debt. The collector also should tell you your rights regarding any liability with notice during the verification period. The verification period starts when a creditor or debt collector calls you regarding any obligation, and this shouldn’t exceed more than 30 days, or within the first 30 days, you received a letter from a debt collector.
How To Conduct Debt Verification
Your verification request should be in writing, and there aren’t any legal formalities involved here. Making a clear statement is enough; even a single sentence will suffice. When you write the debt verification notice, you can then mail it to the debt collector using the address in the debt collection letter. You should also keep a copy of the letter for future reference.
You should understand there is no need to provide an explanation on why you want to verify the loan and at the same time the debt collector can’t force you to provide such proof, and this is applicable even if you recognize the loan, it’s just your legal right to do so.
Can They Begin With Collection Action Within The Verification Period?
It’s still permissible for the debt collector to continue with any legal action concerning your debt during the verification period. They can’t take any adverse action or make immediate threats to you; they can’t report your liability to any authority; the debt collector shouldn’t do anything that will negatively affect your credit score. The only right they have within this period is to make general attempts to collect the debt; they might send as many notices as they want without making any threats or ask you to contact them.
When the verification period is over, it is mandatory on your part to comply with their terms and pay their loans within the specified conditions, or else they have the right to take legal action against you.
Debt collection dispute is widespread these days, and they can be somewhat challenging to deal with if you need any help regarding debt collection contact us at Massey & Duffy so that we can answer all your questions.