What To Do Next When You Got a Collection Letter in The Mail

With the unstable economy and an unsure future of most businesses, the last thing you need is a credit card debt collection letter landing in your mail. Unfortunately, this happens to hundreds of people across the country. It’s their reality. If such is the case, don’t panic. There are steps you can state in order to address the issue and even stop your debt collector from filing a credit card lawsuit.

Immediate Respond To Request Validation of The Debt

Debt collectors do not have the right to ask debtors to pay the alleged debt without proving the debts’ ownership. Note that the burden to ask for credit card debt evidence is on you. Simply respond to the collection letter with a request for debt validation, within 30 days of receiving the collection letter. If you ignore the letter, you are only increasing your chances of facing a credit card lawsuit. If you request a debt validation, you give yourself more time to figure out your next move. Make sure to send the debt validation request via certified mail with a return receipt requested.

Check Your State’s Statute of Limitations

Did you know that debt collectors only got a limited time to collect debts otherwise, they are no longer allowed to pursue the debt or file credit card lawsuit? As soon as you are notified about the debt, check your state’s Statute of Limitations for consumer debts through your Attorney General’s website. If the debt is out of statute, your debt collector cannot collect the money or file a credit card lawsuit and use wage garnishment or property lien as ways to get you to pay the debt.

Do note that some states reactivate statute of limitations as soon as you repay the debt! So don’t pay the debt without knowing the next move you take. If the debt is out of statute, simply ignore the collection letter or send a letter to the creditor letting them know that the legal collections stage has passed. If the debt is within statute, don’t be too quick to start payments because this will bring back the statute clock. Instead, consult an attorney or educate yourself on the right defenses to use if the creditor files a credit card lawsuit against you.

Know Your Rights

Lastly, it is important to familiarize yourself with the Fair Debt Collection Practices Act, particularly if you came across rude, aggressive debt collectors who will stop at nothing to get the money you allegedly owe.  Most debt collectors are hoping you know nothing about consumer rights and will try to squeeze every last penny from you so don’t be a victim and fight back.

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