| By :
Jim Kemish
The Collection Letter Arrives So you opened your mailbox and found a collection letter. Do not fret. Credit repair offers a range of resolutions. Take the right steps and watch your stress melt away. Credit repair will give you the power to turn the tables on aggressive collectors. With the right technique you may even see the collector slink away, never to be heard from again. Are you ready to take control of the situation? Open the Envelope The first step is to overcome fear and open the envelope. Any delay on your part can hinder your credit repair plans. Per the Fair Debt Collection Practices Act you only have a thirty day window of opportunity to ask the collector to provide documentation of their right to collect and the amount of money claimed. This process is called debt validation and we will discuss it more in a moment. Identify the Debt Before you decide on a credit repair strategy you must do a little homework. Examine the collection letter carefully. Do you recognize the account? Collection letters must include a fair amount of information including the original creditor name. Mistakes are not uncommon. If the debt is not yours, pick up the phone and tell the collector. An experienced operator will get you off the account. But if they take an aggressive stance you will want to validate the debt, which should produce something to support your case. The Statute of Limitations Collectors have a finite amount of time to sue you for the money. This length of time is called the statute of limitation (SOL), and can make a world of difference to your credit repair effort. Beyond the SOL a collector has no leverage to turn the collection into a judgment. If they sue you after the SOL expires you must raise the time limit defense, but you will prevail. Statutes of limitation are state and debt type specific, and are almost always far less that the seven year reporting limit. If you are past the limit you can communicate without worry of legal action. Validate the Debt Debt validation is an important credit repair tool and easy to manage. Remember that you only have thirty days from receipt of your collection letter to request validation. You must request validation in writing, and it is helpful to specifically ask for proof of ownership of the debt as well as an accounting of the amount. If they cannot produce the documentation they are supposed to stop all collection and not report. If they do validate, you can decide on the next step with the comfort of knowing that the debt is legitimate. Negotiate a Payoff Once you determine that a debt is legitimate you may opt to negotiate a payoff. This is where the information produced by your credit repair efforts will pay off. Your debt validation provided balance information, and your statute of limitation research told you if the collector has any legal leverage. If the debt is beyond the SOL, know that you are in the driver seat. Let the collector know that you are aware of the SOL and be confident. You will prevail. Good luck. Copyright © 2010 James W. Kemish. All Content. All Rights Reserved.
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