Many consumers wonder what a debt validation letter is. They are often confused with debt verification letters even thought they are both quite different things. Debt validation letters when used correctly provide many consumers protection from creditors or debt collectors that are attempting to collect on their credit card accounts.
So why are debt validation letters so important. Lets start explaining this by looking at the crazy history of the credit card debt collection industry. In the past, companies in this industry have collected on thousands of accounts while having no right to do so. The government passing litigation against these practices eventually stopped these phony collection companies.
Without this new legislation, known as the FDCPA or Fair Debt Collection Practices Act, consumers would not have the necessary legal protection to stop incorrect collection efforts by these companies. The Fair Debt Collection Practices Act is what provides power to debt validation letters.
Debt validation letters have the most effect when sent timely and with the proper composition. Once a creditor or debt collector receives one of these letters they are left with three choices. One, they can validate the account and continue the collection process. Two, they can stop all collection efforts. Three, they can chose not to validate the account and continue collection attempts running the risk of a federal lawsuit.
Let me tell you something that your creditor or debt collector will not want you to know. About 90% of the time they do not have all the information that is required to collect on your account! This may seem crazy but it is the truth. Even without this information debt collectors and creditors will continue to call in an effort to get you to begin making payments. The protection from the FDCPA can only help you if you send a debt validation letter and force your creditor or debt collector to play by the rules.
Now that you realize a little bit about your creditor or debt collector, I am sure you are beginning to see why they try to keep you away from knowing about debt validation. You may be thinking that there is no way that such corruption happens on a daily basis, but I can assure you that it does. Credit card debt collection could not be as large of an industry as it is now without the corruption because the majority of third party debt collectors do not have the information required by the FDCPA to collect on any accounts.
How can you figure out how to write and when to send these letters? This is a great question and the answer is quite simple. All you need to do is to become an expert at using debt validation letter templates. After you have found a quality debt validation letter template you can adjust to your personal situation and send it off. You will be one step closer to being free from creditors and debt collectors!
Discover more information about how to settle credit card debt. Stop by Allan Henry’s site where you can find out all about debt validation letter and what it can do for you.