CC Debt Validation

[LandOnMyFeet]

Illinois Question: CC companies have started sending unpaid CC debt to debt collectors who in tern send letter stating with no response the debt is validated. While we figure out whether BK, Debt Settlement or Scorched the Earth is right for us, would sending a debt validation letter (like the one attached) help in stalling collection activity. Just looking to defend and deflect while we work through the entire process.

Any thoughts are welcome.

[bcohen]

Yes, you should demand validation of any (alleged) debt, and yes you should do so in order to challenge any collection agency/junk debt buyer who is contacting you, but no, you should not use this obviously downloaded-off-the-internet form letter. Before I filed for Chapter 7 bankruptcy, my debts had been in charge-off status for over 4 years, and over the years a plethora of collection agencies and junk debt buyers sent dunning letters. (They did not ever call, because the only phone number I had on file with any creditors was a cellphone, which went dark when I quit paying the bill and let it charge off.)

That being said, instead of using a silly letter with a lot of threats and legal mumbo-jumbo, which the recipient knows you didn't create, I'd suggest writing my own, and keeping it brief. Something like this:

(Date)
(My Name)
(Return Address)

RE: Account number (Account Number)

Dear Debt Collector:

Please be advised that I am disputing the amount and validity of this alleged debt. In accordance with the U.S. Fair Debt Collections Practices Act (FDCPA), your office must provide a proper validation of the debt, or all collections activity must cease. Please be further advised that it is inconvenient for me to accept telephone calls at any time, on any number. All communications should be sent in writing, via U.S. Mail.

Sincerely,

(My Name)

[LandOnMyFeet]

I'm assuming send it certified return receipt for the debt validation question, correct?

[bcohen]

Of course, you send the letter Certified Mail Return Receipt Requested. If you send it with a regular stamp, who's to say it ever arrived? Certainly, it's best for the collection agency/junk debt buyer if such letter never arrived, and with no proof of delivery, as far as they're concerned, it never did arrive.

[nohoneymoney]

CC companies have started sending unpaid CC debt to debt collectors who in tern send letter stating with no response the debt is validated.

I don't believe the debt collectors threat, above, is legal! The burden of proof is theirs not yours and the lack of a response is not proof of anything. I would be tempted to ignore their letter and save the postage. If they repeatly try to contact you, then respond per bcohen letter.

[bcohen]

In order to be effective, the validation letter must be sent within 30 days of initial contact by a particular collection agency or junk debt buyer. If sent after that, they can legally continue to contact you while they (try to) obtain the necessary documents.

[nohoneymoney]

I am confused. Does the debt collectors letter make the debt valid if there is no response? Or. Does the lack of response only allowthe debt collector to continue to make direct contact? Or Both? or Neither? Thanks