The reason that the Fair Debt Collection Practices Act was created is that debt collection agencies were not following honest, straightforward and principled approach to debt collection. Even now they are known to be unreliable and unethical in their collection practices. Collection agencies are often guilty of going after the wrong people or misstating the amount of money owed.
Some of the salient features of the Fair Debt Collection Practices Act are:
- You can ask the debt collector to validate the debt in which case he is required by law to stop collection efforts from you till the time that he can provide you proper proof from the original creditor of the transfer of debt.
- You can ask the debt collector to cease and desist in which case he is required by law to stop making all collection efforts from you.
- The Fair Debt Collection act also makes clarifications about a lot of other things like the debt collector cannot call you before or after certain hours of the day, he cannot contact your employer and place of work and make them aware in any way of the debt, he cannot send mail that in any way discloses that it is concerned with debt collection etc.
To verify a debt the debt collection agency will need to present documentation and paperwork from the original creditor that will prove that you are responsible for the debt. The right to debt validation is an important tool in your hands since it can help in clearing your credit report of various collection accounts. It is common for collection accounts to pass from one collection agency to another every six months. It is quite possible that the collection agency does not have the documentation required especially if the debt happens to be an old one. Just providing use a computer printout a statement of the amount owed does not constitute as proof as the federal Trade Commission has made it clear that America itemize edition cannot constitute sufficient proof of the validation of a debt.
The process of debt validation can not only get rid of the debt that belong to you, but it might also help you get rid of some of the collection accounts that don’t belong to you.
While the law prohibits removal of negative information that is accurate from the credit report, if a collection agency cannot validate a debt, it can no longer collect on it since they’re not following the legal regulations that apply to a debt collection agency as per the Fair Debt Collection Practices Act.
You must also understand that your application for debt validation applies to only one collection agency. If your debt happens to be sold transfer to another debt collection agency then you will need to repeat the process all over again.