The benefits of requesting debt validation

Some Florida residents may get worried after receiving a notice from a debt collection agency. While many people might be quick to pay these bills in an effort to avoid hurting their credit, it’s often better to proceed with caution when a debt collection agency comes calling.

Some experts advise consumers to receive proof from collection agencies before paying. Under the Fair Debt Collection Practices Act, one is entitled to debt validation from a collection agency. This validation can help someone identify if there is a mistake or if they’re getting scammed.

When receiving a collection notice, one can send a letter asking for a debt validation document. To prove this was sent and received, one can use registered return receipt mail. Those trying to collect fake debts will not have a validation document. Collection agencies must stop their attempts when receiving a validation request.

Validations contain the amount of a loan, the balance due and the name of the original creditor. When making a request, one can also request for more information such as the address of the collection company as well as the name and number of the individual handling the case.

Consumers have 30 days to send a validation request after receiving a collection notice. In some cases, one has already paid a debt or it belongs to someone else. This makes it important to ask for verification. With simple and implied contracts, a statute of limitations may apply.

If one files for Chapter 7 or Chapter 13 bankruptcy, then calls and harassment from credit agencies will be stopped. Chapter 13 involves the creation of a repayment plan to pay creditors with future income. One may be able to discharge some unsecured debt after making payments during a span of three to five years.