Credit Repair Techniques - How to validate a debt

From now on one occasion

There is nothing good to receive a letter from the collection. But there is a powerful technique for repairing credit, known as debt validation, which can turn the inconvenience into an opportunity. Like most credit repair techniques debt validation should be done carefully and only in favorable circumstances for success.

Your rights

Debt validation is the right to challenge a debt and receivewritten verification of a debt by a debt collector. This right is granted by the Fair Debt Collection Practices (FDCPA), Section 809. The intent of the law is to prevent errors in the collection of debt, including billing the wrong person, the wrong amount, or debt that has already been paid.

The validation time

It is important to know that you only have 30 days to exercise the right to validate the debt under the FDCPA. In practice, the collectors are sensitive to the period of 30 days and if you ask for validation after the deadline, it is likely that applications will be ignored.

Do action

Before carrying out the validation of the debt that you must investigate the statute of limitations (SOL) of debt and establish the extent of the risk of legal action. The Sun is the length of time a collector can be forced to pay a> Debt through the courts. SOL is useful to understand all the credit repair efforts, and that beyond the Sun, a collector can not sue. Or if they do, they will prevail in court, claiming the SOL defense.

State differences

The requirement varies from state to state and by type of debt, so you have SOL for specific search on the internet. If the debt was incurred in a country other than the current residence, check both the stateSOL standards, as a collector may apply even more favorable to its cause, ie the longest.

Opportunities for settlement

The importance of knowing your Sun is remarkable. Validation of a debt that is beyond the Sun is not able to implement the law of that demand. On the contrary, be aware that some debt collectors treat validation as a trigger for the intensification of efforts in the collection. Validation of debtSOL is still a valuable technique for repairing credit, but you can choose to limit their efforts to debts that are willing to settle.

Preparation of the Charter

Once you have studied the sun and decided to go ahead, it's time to prepare a letter of validation. Keep your letter simple as possible. Like other communications repair credit, there is no profit to share their life story. There is also a value, at least in the initial, to make an aggressive position. Be polite and ask them to validate the debt and provide a bulleted list of specific requirements, including documentation that owns the debt collector and a guide to the amount owed.

The result of validation

For the FDCPA, the collector did not report the debt to credit institutions are not allowed to do so until they provide validation. And they have already been identified and are able to validate the debt that has to stopcollection efforts> and stop reporting.

Over the following

Debt validation is a powerful credit repair, in most cases produces excellent results. But it should also be aware that the legal precedent that defines the obligations of the collector is incompatible. As a result, some collectors only provide minimal documentation and see your work. Furthermore, since there is no time limit for responding to a collector, from time to time you may need to pressthe problem.

Copyright © 2010 James W. Kemish. All contents. All rights reserved.