What must demonstrate that collection agencies go after your old debts

The banking sector is largely a fraud based on the will of the average person to believe the propaganda. Banks do not lend money in reality, people are not defined by their grades, and not a collection agency can harass a family that long after the point of prudence and reasonable behavior. However, for those families who are tormented and threatened with legal action, imprisonment, kidnapping, or other horrible events, the following tips can helpto do with an old debt.

Often, when one enters the default account, credit card or other unsecured loans are sold outside the original creditor to a collection agency. Numerous laws then in force for the new owner of the debt and agencies collection are after. These laws include the Fair Debt Collection Practices Act (FDCPA), the laws authorizing the state tax collectors, and any other State laws Dicana how individuals or organizations must act in pursuit of a debt.

The first step that most collection agencies is to send a letter to borrowers informing them that the agency is now the owner of a particular debt. Borrowers will also be given 30 days to dispute the account or considered invalid. You can also offer a solution or proposed payment plan, but not mandatory and some Collection agencies> just include the language of threats and fear, rather than trying to solve the problem. These companies prefer to force debtors to pay every penny possible, rather than offering an immediate solution.

However, when borrowers get such a letter can take one of two actions. The first is simply to do nothing and not respond to the collection agency. In most cases, the company will sell the account to another> Debt Collector within six months or a year and receive another card debtors another company with similar jobs and settlements of lawsuits and foreclosures threatening language. But nothing really happens with a lot of debt - the original lender has already canceled and collection agencies debt to buy so little that you can follow the simple, borrowers with less information.

The second action that debtors can do is requirethe collection agency to validate the debt. Federal law requires that collection agencies must demonstrate a debt before they are able to collect it. When borrowers do not require validation complany to collect the debt assumed to be valid. Fortunately for borrowers, however, most of the original creditors and keep very accurate records is very difficult for future owners of these accounts to validate properly.

What isrequired to validate a debt? First, borrowers should request proof that the collection agency is assigned or purchased debt (even if you can not do both simultaneously). In addition, the debtor has the right to request a complete history of payment in order to find out how the debt was calculated from the beginning. This includes the request for a copy of each statement made by the original creditor. And finally, without a signed copy of the original loanagreement or request for credit card debt can not be validated.

In fact, when a company is able to validate a debt can not continue to collect it. The cessation of collection efforts until it is able to provide borrowers with useful information. Even if the collection agency is a law firm, it still counts as a debt collector under federal law and must meet the requirements for debt validation. This means thatcompanies can not keep borrowers call or initiate a lawsuit in court unless steps were taken to validate the debt. If you take one of these actions, without validating the debt, the borrower may be able to sue under the FDCPA.