FDCPA

Requesting Debt Validation And Disputing Your Debt

Debt blogger

The Fair Debt Collection Practices Act (FDCPA) has been around for over 30 years. The FDCPA is a federal law that applies to every state. In other words, everyone is protected by the FDCPA. Its purposes are to eliminate abusive practices in the collection of consumer debts, to promote fair debt collection, and to provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information’s accuracy. The FDCPA creates guidelines under which debt collectors may conduct business, defines rights of consumers involved with debt collectors, and prescribes penalties and remedies for violations of the FDCPA. The FDCPA is essentially a laundry list of what debt collects can and cannot do while collecting a debt, as well as things debt collectors must do while collecting a debt.

One important section of the FDCPA is section 1692g, which deals with validating debts. Section 1692g states, “[w]ithin five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall”send the consumer a written notice containing” the following information: (1) the amount of the debt, (2) the name of the creditor to whom the debt is owed, (3) a statement that the consumer has 30 days to dispute the debt, otherwise the debt will be assumed to be valid, (4) a statement about what the collector will produce if the consumer disputes the debt within 30 days, and (5) a statement that the debt collector will provide the consumer with the name and address of the original creditor, if it is different than the current creditor. In other words, the 1692g Notice Letter contains important information about the debt and about the consumer”s rights. Therefore, consumers should read this letter carefully.

If a consumer receives a 1692g Notice Letter from a debt collector, the consumer has 30 days to dispute the debt and to obtain additional information the debt from the collector. Therefore, consumers should always respond to 1692g Notice Letters in order to obtain complete and accurate information about the underlying debt. Furthermore, it is crucial to dispute the debt within the 30-day window, too, if the consumer does not owe the debt. Once a consumer requests validation of the debt or disputes the debt, the debtor collector must stop all collection activities until the debtor collector provides verification of the debt to the consumer. Therefore, the consumer will have some momentary relief from the telephone calls and the letters while the collector gathers and provides verification of the debt. More importantly, however, the debt collector will be forced to validate the debt before continuing with collection efforts.

In summary, consumers should carefully read the 1692g Notice Letter and exercise their the right to validation and right to dispute the debt. That way, consumers will be educated before determining how to attempt to resolve the debt at issue.

Upgrade Your Business With Consumer Debt Collection Agencies

Debt blogger

Debt collection is the process taken up by business individuals for their derelict debt amount recovery from debtors. This is a tedious process for business individuals to recover their debts. It is an effort making process too as here the business relationships are at stake. The law governing the state i.e. Fair Debt Collection Practices Act of the FDCPA limits harassment and abusive practices in the process of debt collection. Thus, the role of outsourcing the work is very crucial and for that it becomes essential to hire debt collection agencies for business individuals and companies. Debt collection agencies provide individualized services to collect debts.

Business to business debt collection is a generalized process which starts with communicating with the debtor. Debtors can be informed about the debt amount over the phone or in personal. These services works best for people seeking services in the domain of debt collection. The concern of debt collection works well for companies in need of a helping hand in getting their money back. Accounts or money left unpaid for a long time become financial headaches that you may never collect at all. The case becomes more errant and severe when the debtor has run off and nowhere to be found. Hence for this, you need a debt collection agency by your side to keep a check on your debts and asking your debtors to pay up as soon as possible.

For small business owners, Debt may become quite severe as they lack the support of all members during hard times. Hence small business owners need a separate approach towards it. Loan provider or business owners have always faced such kind of issues. Therefore, in the present time they need to be updated about the latest principles in regards to the doubtful payment of debt. This results into an outcome where the accumulated overdue of payments can probably cut off the inflow of cash into the business which can hinder the businesss development.

The organizations that works in order to deal wit the attainment of payment on delinquent business accounts are known as consumer debt collection agency. These agencies work through direct and prompt negotiations with the debtors in respect to ensure the money has been repaid. They are also known for their researched and detailed work. They start from the history of the debtors followed by causes that are troubling the person. They assure to avoid unforeseeable predicaments at an early stage.

State Attorney Generals Taking A Strong Stance Againist Harassing Debt Collectors

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With the economic crisis still in full swing, many American families who have typically been able to successfully manage their finances are finding it difficult to keep their head above water. To add insult to injury, many debt collectors have seized upon this economic climate to garner larger profits. However, many States Attorneys Generals have stepped up to try to curb the onslaught from the debt collection industry.

The latest to do so, is Massachusetts State Attorney General Martha Coakley who wants to close loopholes in Massachusetts debt collection rules that date as far back as the 1970s.

Coakley is proposing that regulations prohibiting “abusive” debt collection attempts be modernized by adding cell phone calls and text messages to forms of communication covered by the rules.

She also wants to make debt buyers – companies that purchase debt and then try to collect it on their own — subject to all regulations.

Another change would require debt collectors to make a good faith effort to determine whether a debt is too old to be collected before contacting consumers.

Finally, the attorney general’s office is amending the regulations to make them more consistent with the Massachusetts Division of Banks’ regulation of debt collectors and the Fair Debt Collection Practices Act.

Coakley says the amendments would help ensure that people are treated fairly when contacted about a debt.

A hearing will be held on the proposed changes on May 18, 2011, at 9 a.m. in Boston. Testimony may be presented orally at the public hearing or in writing.

The Fair Debt Collection Practices Act (FDCPA) offers protection from illegal and unethical tactics of the debt collectors. A clear understanding of debt collection laws under the FDCPA will entail you to the power to fight the third party debt collectors.