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Your Guide to Responding A Debt Collection Letter

If you receive a debt collection letter, make sure that it is yours, contact the creditor, and try to pay the debt in full. On the other hand, you should also set up a payment plan. 

If you think the debt amount is not yours and want to dispute the amount they are claiming, follow the steps mentioned below. You can click here to know more about debt collection.

How to respond to a debt collection letter

  • Figure out who you are talking to

The very foremost step is to know who exactly you are speaking to. That way, you will determine you are not dealing with any scammers.

Ask the debt collector’s name, their company name, and the company’s address. If you are dealing with an honest company, they will not hesitate to send you their address. It is necessary to know and verify the company before doing anything else.

  •  Do not provide your personal information.

No matter what they say, do not provide any personal information. It may happen that they called you by mistake. Never share your name, address, or phone number.

  • Do not discuss your debt until valid notice is provided to you.

Do not try to engage in conversation discussing any debt you may or may not have until you receive a validation notice. It is a written notice that depicts how much money you owe and what to do if you think the debt is not yours. 

  • Become detective

Once you get the original creditor, reach out to that company. Ask them the reason behind charging you. The company will also explain if they have the legal right to collect your debt.

  • Dispute the debt

You have the right to dispute the debt if you are already experienced and feel that the debt is not yours, Be specific about why the debt is wrong, and avoid providing any personal information in the letter. If you do not know how to write a dispute letter to the collector agency, you can find the sample letter format on the internet. Remember that you have 30 days to dispute the debt once you receive the validation notice.

You should respond to the debt collectors who call you. They can sue you if you fail to respond. If you ignore them continuously, they can take steps to recover funds from you. They can go for default judgment, and if you do not show up to the court, the judge will then rule in the debt collector’s favor. The debt collector can then apply legal ways to collect money from you, like garnishing your paychecks, seizing your property, or claiming money from the bank account.

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