- Legally validate
collections charge off's that debt collections agencies put on your
credit reports. Errors should be removed completely with
credit disputes. Any old debts, duplicate or second party collection
debts should be validated as part of negotiations.
Validate the debt, then negotiate with the legal debt holder, IF
they can prove that they are legally authorized to collect the debt.
- Many collection companies go after
debts that they are not legally authorized to collect. Some collections
get sold several times and reported as a collection on
your credit reports
and that particular collection agency is not
legally authorized to collect the debt. They do not have the legal chain
of authorization as required by law to collect or report.
That's not fair.
- Here are some guidelines
to get a collection account removed from your credit report completely
or at least verify that this collection company is in fact operated in a
legal framework. If you find they are, then you should negotiate a
payment or settlement as quickly as possible to get this negative
account started on the 2 years back from today threshold for impact on
your credit scores. Everything 2 years back from today (DOLA), counts as
much as 75% of your credit score. The quicker you can these account
settled, paid or removed the quicker your credit scores will improve.
These questions should be
answered on any account validation request.
Who is the current owner of this alleged collection debt?
Who is the original
creditor for this alleged debt on my credit report?
If [NCO/AIS] is the
current owner, when was the said debt in collections purchased?
Who was it purchased
Have you assigned the
alleged debt to another entity for collection?
If so, who?
If [NCO/AIS] has sold or
otherwise transferred this alleged debt, to whom was it sold and
When you try to validate a
debt account with a collection agency these details must be answered or
the account should be removed completely.
Proof that the CA
holds your debt: You must get written proof that your account
has been sold or assigned to the Collection Agency
Your payment history:
You'll also get a copy of your current account payment history. This
will help you verify the total amount you owe, including any fees
being added to your debt. You should also find out how the
collection agency has calculated these extra fees.
Copy of your accounts'
original contract: This is intended to prove to you that you agreed
to the debt. If they do not provide you with a copy of the original
agreement, the CA may also provide you with the account statements
from the original creditor
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Seven legalities collection
agencies must prove and abide by or you can sue and get the account
Request a debt
validation: Send a request letter to the CA asking them to
validate your debt. Check out this sample debt validation letter
to learn how to format the letter. The letter should be sent via
certified mail with a return receipt request.
Check if the
Collection agency is licensed: You need to wait for a reply from
the CA. The agency may send you a letter with the details you've
asked for. While you wait for a response, you should check to
see if your state requires CAs to be licensed, and if so,
whether the CA you are dealing with is licensed. The states that
do not require CA licensing are Georgia, California, Iowa,
Kansas, Kentucky, Montana, Oklahoma, Pennsylvania, and South
What if the CA violates
collection laws: If the collector needs a license to collect debt in
your state and they aren't licensed, send them a letter notifying
they are violating your state's collection law. You should also
inform them that if they continue to attempt collection, they may be
facing a law suit and pay fines to your state.
What to do if the CA
doesn't validate debt: If the CA doesn't send you satisfactory
proof, then you need to send them the documents below:
■A copy of your validation letter
■Copy of the return receipt
■A statement that the CA has violated the FDCPA
Under the FDCPA, if the collection agency doesn't validate your
debt, then they can no longer collect the payment and they are
required to stop contacting you.
listing: Under the FCRA, collection agencies should not report a
negative entry to the CRAs if the CA does not validate your debt.
You need to send a letter to the collection agency asking them to
remove the collection listing. You should also inform them that if
they don't remove the collection listing, you might sue them for
violation of the FDCPA. Wait 15-20 days for a reply from the
collector. They'll either remove the negative listing or they won't
respond at all.
Sue the collector if
listing isn't removed: If the collectors don't remove the collection
listing from your report, then you can file a lawsuit because they
have violated the FDCPA. Before you file the lawsuit inform the CRAs
that the CA is refusing to remove the collection listing.
Know how to deal with
the CRAs: If the CRAs verify the collection listing, you'll have
verification that the CA has the right to collect on the debt. If
the CRA validates the debt, you should send them proof that the CA
has refused to respond to your attempts to validate the debt, and
therefore is violating the FDCPA. If the CRA refuses to send you the
validation information they have received from the CA, you should
include them in your suit against the CA for violation of the FDCPA.
Validate collections charge
off's and errors to remove them from your credit report completely
Real Live Person's Question:
A cookbook company is reporting on my credit report that I owe them
money. They're using a collection agency. I never ordered anything from
this company. I disputed it with Experian, but they said they verified
it & they won't remove it. What can I do now to remove this? Thank you
Bo Majors" Response:
Validate with the cookbook company then, do it again
Debt Validation follow up
Then call the law, bbb, state consumer affairs, state attorney
general, take them to court with your documents.
Real Live Person's Question:
It has been almost a month since I sent my validation letters. 2 of them
came back from different co's. with a letter that stated they sent me
info on the collection on 04-07-07 and that I had 30 days to comply.
Going further, they stated that since I did not validate it, I assumed
the debt. Yet they sent me no info that I asked for! What should I do.
(By the way those 2 co. are the same, using 2 different names for the
same amount of money) What should I do for this as well? And finally the
3rd co. sent me a one sheet letter that said VALIDATION LETTER, with my
acct # and last transaction date and the original creditor name but none
of the specific info asked for on your Validation letter. What should I
do here? Maybe send them follow up letters? Any help will be
Bo Majors' Response:
Did you do the
debt validation follow up
Next is file compliant online with state attorney general
I will do that. But the follow up letters do not contain the specified
documents that you listed in the first letter, so should I add those in
Bo Majors" Response:
This should prompt them to provide said docs.
But sure ad that in.
Then complain to attorney general
How to Get Good Credit
validate collections charge off's that debt collections agencies put on
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