The Federal Fair Debt Collection Practices Act outlines the procedures to be followed when a debt collector claims to pay a debt to him since. Basically, the Fair Debt Collection Act gives you the right to challenge a debt.
We make two basic things when you dispute a debt. First, if you dispute the debt within the first 30 days after debtcollector contacts you, you must stop all collection activities until it verifies that you are responsible for the debt. Second, it requires the collector to disclose their dispute to any credit reporting agency to which they are presented. This is important because many credit scoring models ignore or disregard disputed debts.
Addressing the debt to 30 days before
The ideal time to dispute a debt within the first 30 daysafter receiving the first letter of the collector. The Fair Debt Collection Act refers to this time of day-30-frame as the monitoring period. During this period, you need a valid challenge to dispute the debt. Y 'permissible for you to simply tell the collector that the debt we really need.
The validation request is important request because it puts the burden of proof on the collector. In other words, the debt collector much produce verification to prove that they own the debt. If you can not produce verification can not take any action to collect more from you. Of course, if you have faith challenge a bona debt, make sure you state in your letter of validation.
Simply check your interest does not require the collector to describe the alleged debt to a credit reporting agency. To raise the requirement that> Describe the debt collector in dispute, must present a specific challenge to the alleged debt.
Dealing with debt collectors, after 30 days
If you lose the first period of 30 days, is always a good idea to challenge the debt. A valid dispute outside the time period of 30 days are still forces to describe the debt collector questioned. Not produce an irreverent dispute because it can undermine anyapplication file is located.
If you live in Texas, you have more rights that are not under the Federal Fair Debt Collection Practices in Texas, you can dispute a debt at any time by the debt collector a letter stating your dispute. Upon receipt of the notice of dispute, the debt collector must cease all collection activities until their case is reviewed to determine the amount of money owed on realdebt, if any.
Not later than 30 days after the collector receives your cause, shall respond in writing or deny your dispute, admitting the dispute, or to request an extension of time for investigation. If you acknowledge your complaint, you must correct your records and send a notice of inaccuracy, along with a copy of the correct information for each agency which has produced a report inaccurate records. If the weather had other requests shouldcorrect their records to comply with your request and notify the correctness of each agency that reported the disputed information. The collector can resume collection efforts only after its investigation was completed and found the information is correct.
Defying debts with creditors
The Federal Fair Debt Collection Act does not apply to creditors. You do not have the same rights when you dispute debtswith the original creditors. It does, however, having the rights of disputes under other federal and state laws, certain types of creditors.
For all creditors, Texas law prohibits the creditor indicating that they are deliberately refusing to pay a debt when the debt is disputed in writing. Texas law, however, does not refer specifically to credit reports as federal law does. In practice, however, a creditor statesa credit reporting agency has refused to pay the debt after alleging that the debt is almost always going to be in violation of Texas law.
Texas law is actually broader than federal law. You do not have this performance to anyone, not just a credit rating. Therefore, the creditor sells a debt collector for a third, while representing that wrongly refuse to pay is likely in violation of Texaslaw. Unfortunately, there are pending legal issues involving the relationship of the Federal Credit Reporting Act and Fair Debt Collection Act that make it difficult to keep Texas a creditor responsible for breaking Texas law in his report to the reporting agencies credit. But it is still useful for sending a letter of protest. The creditor may be adjusted to avoid the possibility that federal law interpreted to allow the application of the law of the State of Texasrequirements. The dispute letter may, therefore, keep the creditor from misrepresenting your debt to third parties other than credit reporting bureaus.
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