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18
Jan

Consumer Rights with Debt Collectors

Consumer Rights With Debt Collections

The most powerful weapon if you’re dealing with debt collectors is to request account validation. This is your right granted by the FDCPA and it will require the collection agency to respond by providing you with the paperwork and documentation for your account.

If your debt is not validated then you’re no longer legally responsible for payment, and the collection agency is suppose to notify the credit bureaus to have them remove collections from credit report files about this account. If your debt is validated then you’ll want to negotiate a settlement payment.

Avoid paying the full balance because you can typically negotiate to settle the account for about 10% to 40% of the total. For instance, with a $300 debt you may be able to settle it for just $90 or 30% of the balance.

It’s vital that as part of your settlement agreement you get the collection agency to agree to stop reporting your account information to the credit bureaus, in exchange for your payment. This way you’ll be able to go about removing collections from credit report files and won’t suffer the damage of a recent paid collection.