Debt Validation

Basically, if the debt is validated within 30 days after the predators receive your request by certified mail, there isn't much you can really do. It's best at this point to start bargaining with them to try to get a good settlement. Now, they'll try to encourage you to pay this thing "in full" and there are a few things to question before deciding to settle or pay in full. If it's the original creditor (not gotten to a predator yet), then pay it in full if at all possible. It's the best thing for your credit. If it's being collected by a predator, save the money and settle. Chances are on your credit that debt's already showing as "charge-off" or a "write-off" and that's bad enough. Paying it in full at this point really isn't worth the money. It's basically gonna help a few points but it's usually not worth the money...try to settle unless it's a small debt that you can pay in full.

However, let's talk about paying these folks at this point. DO NOT SEND THEM ONE CENT UNTIL YOU GET A SETTLEMENT OFFER IN WRITING THAT TELLS YOU THAT YOUR ACCOUNT WILL BE CLOSED AND HOW THEY'RE GOING TO REPORT IT TO THE CREDIT BUREAUS. If they don't provide that, mail them a letter, Certified Mail again, stating your willingness to pay as soon as you get that. (You're building evidence.) This shows a judge, if you get sued or decide to sue, that you were more than willing but they wouldn't give you a promise of what they would do. After you send that, mail the money and get a guarantee that the account IS CLOSED. Keep this for years to come because you can sue them if that debt EVER shows up again...but what if they DON'T VALIDATE THAT DEBT?

Okay, 30 days has passed since THEY SIGNED FOR YOUR VALIDATION REQUEST LETTER and nothing in response or they sent you something saying that they couldn't validate it, right? Okay, Here's what to do. First off, don't call or do anything like that. Get this letter from www.creditinfocenter.com/forms/sampleletter15.shtml and fill it out personal to your situation. Send this letter Certified as well. It basically says that they either Validate the debt or leave you the hell alone. It also says that you're willing to use the courts to help you out and here's a good time to bring something to your attention. It may not be a bad idea for you to consider suing them and here's why. Go to www.creditinfocenter.com/eBooks/PoorMansClassActionLawsuit.shtml and look at the list of offences that you can sue them for and the damages that can be obtained. Again, once they realize that they're messign with an informed citizen who is willing to fight for the rights, they will reconsider their tactics. So, go there, look at the things you can take them to court for and start making a list. Keep phone records, letters, anything at all. Then, send your second letter ready to back up what it says. After 30 more days, if nothing is returned to you, it's time to attack the credit bureaus. Go here to get the letter you need to send the credit bureaus and let her rip. Repeat the same process if depending on what they send. Follow me to "What to do if Collection Agencies will not Validate"...