How do you prove you don't owe a debt?
Collect any documentation or evidence that supports your claim. This can include bank statements, payment records, contracts, or any other relevant documents that prove you are not responsible for the debt. Make sure to keep copies of all communication with the debt collector as well.
The collection agency usually gives you specific information in its first letter, which is generally called a "debt validation notice," including: the amount of the debt. the name of the creditor to whom the debt is currently owed.
But what must the creditor provide by way of documentation? At a minimum, it must produce: A copy of the original written agreement between the parties, such as the loan note or credit card agreement, preferably signed by you.
In order to win a court case, a debt collector must prove that they have proper ownership of the debt, that you actually owe the debt, and that the amount they claim you owe is correct.
If you've already paid the debt
If you're sure that you're talking with a legitimate debt collector, you can send copies of documents that prove you made the payments, including cancelled checks or credit card statements. You may also include copies of any correspondence about settling the debt.
While debt validation requests can be a useful tool, they are not effective at resolving the issue. In most cases, creditors and collection agencies are able to provide the necessary documentation to prove the validity of the debt.
- Keep a record of all communication with debt collectors.
- Send a Debt Validation Letter and force them to verify your debt.
- Write a cease and desist letter.
- Explain the debt is not legitimate.
- Review your credit reports.
- Explain that you cannot afford to pay.
Debt validation letters are mandatory under the FDCPA, which states that “within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector … shall send the consumer a written notice including” several items: The amount of debt. The name of the creditor.
The official receiver, liquidator or trustee is required to send a proof of debt form to any creditor in winding up or bankruptcy proceedings where the creditor so requests [Note 32] [Note 34].
If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
What is the 777 rule with debt collectors?
The “777 Rule” states that debt collectors may attempt to contact a consumer about a single debt up to seven times in seven days. Phone numbers do not matter; it's the number of debts that matters.
Debt collectors cannot harass or abuse you. They cannot swear, threaten to illegally harm you or your property, threaten you with illegal actions, or falsely threaten you with actions they do not intend to take. They also cannot make repeated calls over a short period to annoy or harass you.
| State | Written | Oral |
|---|---|---|
| Alaska | 6 years | 6 |
| Arizona | 5 years | 3 |
| Arkansas | 6 years | 3 |
| California | 4 years | 2 |
Specifically, section 609 of the FCRA gives you the authority to request detailed information about items on your credit report. If the credit reporting agencies can't substantiate a claim on your credit report, they must remove it or correct it.
Once your debt has been sold you owe the buyer money, not the original creditor. The debt purchaser must follow the same rules as your original creditor. You keep all the same legal rights. They cannot add interest or charges unless they are in the terms of your original credit agreement.
If you don't pay, the collection agency can sue you to try to collect the debt. If successful, the court may grant them the authority to garnish your wages or bank account or place a lien on your property. You can defend yourself in a debt collection lawsuit or file bankruptcy to stop collection actions.
Some of these letters have strict deadlines and your creditor can take further action if you do not reply. Ignoring them is not a good idea. Make sure your creditors have your current address. You might not know about court action if you do not get important letters.
If the collection agency failed to validate the debt, it is not allowed to continue collecting the debt. It can't sue you or list the debt on your credit report. Why request validation, even if you're ready to pay and you know it's your debt? Simple.
In the end, the debt collection agency might offer no response to your debt validation letter simply because they know they can't legally validate the debt. To continue to pursue the debt, they have to come up with proof. If they can't, the collection calls must stop and you've won the fight!
Don't provide personal or sensitive financial information
Never give out or confirm personal or sensitive financial information – such as your bank account, credit card, or full Social Security number – unless you know the company or person you are talking with is a real debt collector.
Why you shouldn't pay debt collectors?
By paying the collection agency directly, the notification of the debt could stay on your credit report longer than if you attempt to use another option, like filing for bankruptcy. When institutions check your credit report and see this information on it, it may harm your ability to obtain loans.
Explain your current situation. Tell them your family income is reduced and you are not able to keep up with your payments. Frankly discuss your future income prospects so you and your creditors can figure out solutions to the problem.
Dispute in writing, and include any evidence that supports your claims (such as copies of cancelled checks showing you paid the debt or a police report in the case of identity theft). If the debt collector knows that you don't owe the money, it should not try to collect the debt.
They gave you the money, and you should pay. The same is true even if the debt is sold and belongs to someone else. However, you have every right to dispute the debt if details are lost during the transition from the original creditor to the debt collection agency.
- Their name.
- Company name.
- Company street address.
- Telephone number.
- Professional license number, if your state licenses debt collectors.
