One of the strategies that many people use when they are faced with debt collection is asking a collection agency to validate the debt. This requires the collection agency to provide proof that the individual actually owed the money to begin with. If the debt collector cannot prove this debt, you may not have to pay it.
Debt Validation
As a debtor, you have the legal right to ask for debt validation when a collection agency contacts you. When the collection agency contacts you, you have the right to ask for documentation that shows you actually accumulated the debt. For example, if the disputed item is a credit card account, the collection agency would have to send a copy of your credit card statement or a similar document. During this process, the collection agency cannot continue trying to collect from you.
Credit Score Impact
One of the issues with having an account in collections is that it can hurt your credit score. The account will show up in your credit report as a negative item. If a debt collection company contacts you and you ask for validation, the company cannot put a negative item on your credit report if the debt is not validated. This helps protect your credit from items that are not legitimate debts that you owe.
Turning the Debt Over
In some cases, when the collection agency cannot prove what you owe, it will during the debt back over to the original creditor. At that time, the credit card company could provide proof of the debt and ask you to pay the bill.
Getting Out of the Debt
If the collection agency and the original creditor cannot prove that the debt exists, you are not legally obligated to pay it. The creditor might file a lawsuit against you, but unless the creditor can prove that the debt exists, you will not have to pay it. At that point, you can write a letter to the collection agency or the creditor to cease and desist communication in regards to trying to collect the debt.
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