The Proper Proof of a Debt Assignee

A debt assignee is a debt collector assigned to collect a debt. Creditors make the assignment after failing to directly collect from the debtor on a delinquent debt. Assignment means the debt collector accepts the debt on commission. The creditor retains ownership of the debt; the debt collector is paid a percentage of the money it collects. After assignment of a debt, the debt collector must notify the debtor. By law, debtors have the right to dispute the debt and ask for verification, or proper proof, of the debt.

Process

After receiving an assignment, debt collectors usually contact the debtor by telephone. The Fair Debt Collection Practices Act, a federal law, requires the debt collector to follow up initial contact with a written notice containing the name of the creditor, the amount of the debt and a statement indicating that the debtor has 30 days to dispute the debt. The debt automatically becomes valid if the debtor fails to dispute the debt within the 30 days, according to the law.

Disputing

The debtor can protect his rights by sending a letter to the debt collector within the 30-day window. The debtor must write that he is disputing the debt and is requesting that the debt collector provide proper proof of the debt. Furthermore, the debtor can demand that all collecting activity on the account end immediately until the debt collector provides the proper proof.

Strategy

The law allows the debtor to dispute the debt even if the debtor knows that the debt is valid. Disputing also begins a paper trail that is useful in the debt collection process. Disputing the debt provides another advantage for the debtor as well. It forces the debt collection agency to request proof of the debt from the original creditor. The debt collector then sends the proof to the debtor. The entire process can take weeks or months, giving the debtor time to gather money to pay the debt or begin a payment plan.

Proof

Proof from the debt collector can range from a copy of a signed credit card agreement to the most recent billing statement. Or the debt collector may send copies of every billing statement since the start of the account. The intent by the debt collector is to show proof of assignment on the account, establishing a legal right to collect from you. Sending the proof allows the debt collector to resume all debt collection efforts.