If you are trying to collect a debt, it is vital to understand your rights as well as your responsibilities. For example, you need to make sure that you abide by the Fair Debt Collection Practices Act, which includes a number of different guidelines regarding contacting debtors and attempting to collect debts.
As a creditor, you will need to send a validation letter after you first talk to a consumer about their debt. Make sure you carefully review the contents of this written notice and the key issues that you need to address in the letter.
What to include in a debt validation letter
On the Federal Trade Commission’s site, you can review the Fair Debt Collection Practices Act, which covers a number of issues including debt validation letters. Under the FDCPA, debt collectors need to send consumers a written notice regarding their debt no more than five days after talking to consumers for the first time (unless the consumer paid their debt already or initial communication addressed these issues).
In the debt validation letter, you need to include the amount a debtor owes, the name of the creditor owed and a statement stipulating that the debt will become assumed valid 30 days after the consumer receives the notice unless they dispute the debt.
Other issues to address in debt validation letters
In the letter, you also need to include a statement informing the consumer that if they dispute the debt in 30 days, they will receive a verification or judgment of the debt via mail. Moreover, you need to inform the debtor that you can give them the original creditor’s address and name (if necessary).
Aside from debt validation letters, make sure you have carefully reviewed all aspects of the Fair Debt Collection Practices Act and focus on securing the most favorable outcome.