When you’re contacted by a debt collector, you have the right to ask questions or request for more information regarding that debt, this is called debt verification. Whenever you’re contacted by a debt collector 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 FDCPA (Fair Debt Collection Practices Act). This law was formulated to enable consumer request for any important 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 on the amount that’s to be collected or fully 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 debt that need to be corrected.
- When you believe you’re not the only person entitled to paying that debt, this might happen when someone take a load on your behave such as your spouse or children.
- You should verify that the collector owns that debt or has the right to come and collect the debt from you.
It’s the responsibility of any debt collector to provide all the basic information that’s needed for the debt they wish to collect, if they don’t provide such information it’s your duty to ask for it. It’s not every question you can ask a debt collect, only the basic details that pertain such loan. Whether you own that debt or not you still have the right to verify such loan, this is imposed by the FDCPA, the debt collector doesn’t have the right to know why you want to 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 debt with a notice during the verification period. The verification period starts when a debt call you regarding any debt 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 isn’t any legal formalities involve here, making a clear statement is enough, and you don’t need to go through long writing to request that, even a single sentence might be enough. 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 explanation, 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, but they can’t take any negative action or make immediate threats to you, they can’t report your debt to any authority, the debt collector shouldn’t do anything that will affect your credit score in a negative way. The only right they have within this period is to make general attempt to collect the debt, they might send as many notices as they want without making any threats or ask you to contact them.
And when the verification period is over and you’re provided with all the information you requested and it’s proven that you own that loan, it’s now mandatory from your own part to comply with their terms and pay their loans within the specified terms or else they have the right to take legal action against you.
Debt collection dispute are very common these days and they can be somewhat difficult to deal with, if you need any help regarding debt collection contact us at Massey & Duffy so that we can answer all your questions.