How to Ensure Debt Collection Is Legitimate
Your phone rings Someone on the other end claims to work for a collection agency. He tells you that the purpose of this call is to collect the debt. Debts that are so old that you think it is lost or you also do not remember owed. This can be legally billed or not how do you make sure?
The caller must identify who he is and who he is working for. Legitimate debt collectors in Australia will provide phone numbers, business names and mailing addresses. The scammer will fail in this case or claim that he does not have to provide this information.
The majority of collection agencies will send a letter before calling you. Federal law requires that they send letters of debt no later than five days after their first contact with you. Eliminate your surprise when they call and they follow the law ascertained by sending the letter.
In order for a billing agency to verify your debt has rights. With a receipt back so you have proof that they received the letter you sent the letter through certified mail and you must do this in writing. An example letter from the Consumer Financial Protection Bureau can be found at consumerfinance.gov. How to Ensure Debt Collection Is Legitimate
Although there is no federal definition of what constitutes debt verification, the assumption is that if they can prove to the judge that you owe, then that is an acceptable verification. So you must accept one or more of these items:
· Copy of original signed contract
· A copy of the bill statement from the original creditor
· A copy of at least one canceled check paid from you to the original creditor
· With debt information from your binding creditors (account number, creditor’s name, last four digits of your social security number, amount charged and current balance)
The collection agency has thirty days to provide this verification to you. During debt collection in NSW, collection agencies can not attempt to collect this debt in any way and they can not report this debt to the credit bureaus (note the original creditor can still report it).
Some things you should do during this period of thirty days
Check your credit report to make sure your debt is really yours. The original creditor will report this as “Charged Off” if it has been transferred or sold to a collection agency. You may also specify that the debt is too old under your country’s law of limitations for collectors to sue you. How to Ensure Debt Collection Is Legitimate
To determine who they sell the debt to contact the original creditors. They can tell you this information. To find out who the real owner is you should follow the “title chain” if the debt has been sold many times. And it’s possible that this collection agency can verify the debit drastically if it has been sold many times.
The debt can not be collectible if verification can not be given to you within thirty days. But, the collection agency will add this to your credit report and the debts can be charged if they verify it.
Do not spend time on the phone with a debt collector if you have any questions about this debt not yours. Any hint to acknowledge that debt belongs to you will not be granted by you. Confirm the mailing address to send it and politely end the call after notifying the collector that you will send a verification request.