The Fair Debt Collection Practices Act is a federal law that allows people to challenge the validity of a debt when a collection agency tries to collect it from them. This is done by sending the collection agency a debt verification letter.
Verification Request
Once a debt collection agency contacts a consumer in the mail, the consumer has 30 days to dispute the validity of the debt. If a consumer is unsure of the source of the debt, or if he believes that he has received the letter in error, he sends a letter to the collection agency requesting that the debt be verified.
Verification Questions
The letter requesting verification of debt will ask for documentation that proves that a debt is owed. It will also ask for the name and address of the company to which the alleged debt is owed, the total amount of the debt and the original contract that the consumer signed with the company.
Agency Response
The collection agency is obligated to investigate the matter thoroughly and to mail a reply. Its answer must include a photocopy of the credit card or loan contract that the consumer signed and a copy of an itemized bill from the creditor. If the collection agency purchased this debt from another collection agency, a letter of transfer of debt will be sent as well.
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