If you're interested in doing the credit repair yourself, you'll want to be clear on a few of the basics.
One aspect you'll want to fully understand is the debt validation letter.
Its important to not only know what debt validation means, but also when to use it, how to use it, with whom to use it and why you'll be using it.
Lets start with what it means.
Debt validation means having the company trying to collect the debt provide proof that the debt is actually your responsibility and that they have the right to collect it.
You'll want to send a debt validation letter as soon as you hear from the collection agency. When you are contacted for the first time by a company claiming to own a debt they say you owe and insisting that you pay it immediately, get their mailing address and send them a validation letter whether you recognize the debt or not.
You'll want to make sure that your debt validation letter does not say you refuse to pay the debt. You also don't want it to say you will. Instead have it ask for specific proof that you are the party responsible for the debt.
You'll also want to make sure that it asks for substantial evidence that the particular company seeking to collect the debt has the legal authority to do so. Not only must they have proof from the original creditor that they purchased the debt, you'll also want them to provide proof that they have a right to try to collect the debt in your particular state.
An example of proper proof that the debt belongs to you, would be a copy of the unique agreement you made with the original creditor.
An example of proper proof that the particular company trying to collect the debt has authority to do so would be a copy of the receipt of your debt's purchase.
Knowing how to create a proper debt validation letter is one of the many tools you'll want to add to your toolbox, when a collection agency enters your life. For more free tools, visit http://www.help-with-credit-issues.com today and take back control.
Labels: Debt, Debt Validation