Unpaid credit card debt can haunt you for a long time. The original creditor may try to collect the money from you. If this isn't successful, the creditor may hire a collection agency. As a debtor, you do have rights. The collection agency must verify a debt, if you request that it do so. The Fair Debt Collection Practices Act outlines the procedure you can use to obtain this verification.
Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act governs consumer debt collection. Some consumers confuse the terms "validation" and "verification." Under the FDCPA, each term has a distinct meaning. The FDCPA requires a collection agency to send you a written "validation notice" within five days after it first contacts you. This notice specifies the name of the creditor and the amount of the debt and contains information on your right to dispute the debt. It will also include the address and contact information for the collector.
Significance
Once you receive the validation notice, you have up to 30 days to send a written request for verification to the collector. Verification means the collector must provide proof that you owe the debt. This proof can come in the form of a bill of sale, a contract you signed or receipts for purchases you made. If you don't send this verification request within 30 days of receiving the validation notice, federal law permits the collection agency to consider the debt valid and pursue collection of it. Within that 30-day time frame, you may also request the name and address of the original creditor if it's different from the current creditor.
Considerations
After a collector receives a written debt verification request, the collector is not allowed to contact you again unless he can verify the debt. Once the collector provides written verification to you, he can begin to contact you again for payment. Under the FDCPA, a collector can call you between the hours of 8 a.m. and 9 p.m. He can also call your place of employment; however, he may not call you at your job if he's aware your employer prohibits it or if you tell him not to -- either verbally or in writing. Also, the collector cannot harass you, such as making threats of harm if you don't pay the bill.
Cease & Desist
A collection agency may contact you about a debt but you can stop that contact altogether. To do this, you can send the collector a cease-and-desist letter. This letter tells the collector that you want no further contact about the debt. The collector cannot contact you again, with two exceptions. He can contact you to tell you that he received your cease-and-desist letter and he can contact you to inform you of any legal action regarding your debt. Stopping a collector from contacting you doesn't alleviate your liability for the debt if it's valid. Since the collector cannot discuss the matter with you, he may simply pursue legal action against you instead.
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