How to Get Proof From a Collection Agency of Proof of Payment

Proof of payment is your only method of defense if a negative remark on your credit report stops you from getting approved for a loan. You can present this proof of payment to the loan processor and request they reassess your standings as a creditworthy individual. Mortgage lenders often require that all collection accounts be settled before they will approve you for a mortgage loan.

Instructions

1

Educate yourself about your rights before you even start negotiating. Read publications from the Federal Trade Commission, and read the Fair Debt Collection Practices Act.

2

Seek debt validation to show you that the debt collection agency has the right to collect this debt. Request written confirmation from the credit collection agency within 30 days of receiving a collection call. Start a file to keep these records in.

3

Check with the Better Business Bureau and Chamber of Commerce to verify that the collection agency is a licensed and legit company. You also want to see if there have been previous complaints about them receiving payment and not being cooperative with sending proof of payment.

4

Negotiate your payment with the debt collection agency. In the book, "The Complete Book of Dirty Little Secrets" Jason Rich advises caution about the promises a debt collection agency makes. They can't make settlement deals with you unless they have purchased the debt in full. Otherwise they have to get permission from the original creditor.

5

Before you make a payment, request that they put the terms of the payment agreement in writing before you submit any payments.

6

Discuss the method that they will provide proof of payment. Some of the agencies will fax you proof of payment. Others will only mail it to you. A few will fax you a copy of what they will send to you in the mail.

7

Wait for that letter before you give them credit card information or a check. Check for a signature from the representative.

8

Make payments with a money order so that you will have a receipt of your own. You also may not want to release your checking account information to a credit collection agency.

9

Send the payment through certified mail so that you have a receipt of the collection agencies receipt of your payment. Signature confirmation will give you the name of the person who accepted your mail.

10

Wait thirty days for proof of payment. If you have not received it, contact the representative and demand that he honor the agreement. Request that he fax you a copy within the next 24 hours since he agreed to the terms of repayment.

11

Call the agency representative and let them know that you are aware that they received your payment. Ask them when you can expect to receive the proof of payment.

12

Hire a lawyer if you have not received a letter from the debt collection agency or the mark has not been updated on your credit report within 90 days. Sometimes a call from a lawyer is all you need to light the fire under a collection agency to do what they promised.