Debt collectors often mail letters asking people to pay on delinquent accounts, and it's generally fine to ignore the letters if you are unable to pay. However, there is not a hard and fast rule on this, and some letters may merit a response. It all depends on the content. Delinquent debt on credit cards and other loans can lead to debt lawsuits, meaning you should carefully read every letter from a debt collector -- even if you do not intend to respond.
Law Firms
A debt collection letter from a law firm or attorney in your state is potentially a serious issue and could indicate that the creditor is considering filing a civil suit against you. Many debt collection agencies are operated by law firms, but only those practicing in your state can file a lawsuit against you to collect the debt. There's no guarantee that the law firm will sue. However, the threat of a suit is real, and you should respond to letters from a debt collection attorney in your state.
Initial Contact
A federal law called the Fair Debt Collection Practices Act requires all debt collection agencies -- including law firms -- to contact you in writing when they begin collection efforts for a debt you owe. Generally, the firms make initial contact by telephone and are required by law to follow up in writing within five days.
Verfication
Important information about your rights is listed in the first written correspondence from the debt collector, and you should read and respond in writing to the information to protect your rights. Federal law gives you the right to force the debt collector to provide written proof that it has the legal right to collect from you and that the debt is valid. For example, you have the right to ask the debt collector to send you copies of every billing statement issued on the account by the original creditor or to produce a copy of a promissory note or contract that you signed.
Roadblock
Federal law prohibits the debt collector from continuing collection attempts until it provides proof that the debt is valid and you owe it. That can take months because the debt collector must request the information from the original creditor. In some instances the information is not available on old debts because the bank sold the account for pennies on the dollar with billing statements and other information subsequently misplaced or lost.
Legal Advice
People with multiple debt collection accounts should seek advice from an experienced consumer affairs attorney. Arranging a flat-fee arrangement for consultation is a sound strategy for deciding how to respond to debt collection letters. During a few meetings with the attorney you can learn which types of collection letters to ignore and which to respond to.
Options
The Fair Debt Collection Practices Act gives you the right to inform debt collectors that they should not contact you at all and instead should send all notices to your attorney. Debt collectors work on commission and usually place more emphasis on accounts that appear easy to collect because the debtor seems intimidated or is not knowledgeable about her rights. Acting on sound advice from an attorney -- or having all correspondence sent to the attorney -- sends a clear message that you are not a pushover.
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