Each year, the debt collection industry generates about $13.4 billion.
It’s a money maker, and no wonder. Debt collection agencies work around the clock to collect money owed from schools, businesses, and health care providers.
No matter how carefully you pay your debts, you may find yourself on the wrong side of a debt collector. It can be scary when the phone calls and letters start pouring in.
you might ask yourself, “how do I handle this and respond appropriately?”
There is a simple answer. When the debt collection agency calls, they must send a debt verification letter by usps certified mail.
Wondering what a debt verification letter is? no maybe you’re not sure why you should send it by certified mail?
We explain it to you. Read on to learn how sending a letter by certified mail can help you respond to debt collection notices.
how does debt collection work?
If you’ve accumulated debt from credit card expenses, school loans, or other sources, there’s a good chance you’ll be called by debt collection agencies.
Debt collectors will contact you in several ways. some debt collectors will call your cell or phone to try to get you to pay quickly. others will send notices by mail. some debt collectors will use both methods.
If you’re late on a credit card payment, collectors will start notifying you shortly after the first late payment. other forms of debt are similar.
If you haven’t made your payments for more than six months, you should expect more frequent communication from debt collectors. In many cases, debt collectors will begin sending notices by usps certified mail.
Debt collectors use certified mail because it allows them to keep a record and provides proof and evidence of when the notice was sent and when it was delivered.
This is useful for debt collectors because if you fall behind on payments for too long, a debt collection company or attorney may try to sue for the money and costs. Certified mail records are crucial in court.
If debt collectors keep sending you notices in the mail, your first instinct is probably to ignore it and hope it goes away. unfortunately, this is not the best option.
why? because that’s what debt collection agencies want you to do.
The best case scenario for debt collectors is that you don’t respond. If you don’t respond to your letters and don’t show up in court, the judge can enter a default judgment against you.
This can lead to wage garnishment, it shows up on your credit report, and a debt collector takes part of your paycheck without your consent.
To avoid this, you need another way to deal with debt collection notices.
how do you dispute debt collection?
The first step is to make sure you really owe the dollar amount the debt collection agency is asking you to. Many times additional charges and costs have been added to the debt and you may be able to dispute the validity of the debt.
Also, debt collection and management systems are legally required to provide you with something called a debt validation letter. a debt validation letter explains the source of the debt and exactly how much it is.
Without sending a debt validation letter, a debt collector cannot collect your money. the debt collector has no power over you unless you first send them a debt validation letter.
why is a debt validation letter so important?
Debt validation is important because the collector may be asking for money by mistake.
Sometimes debt collectors make mistakes. they handle a lot of information and sometimes the wires get crossed. you don’t want to accidentally pay someone else’s credit card debt.
You also want to make sure you avoid a debt collection scam.
Debt validation can help you spot a scam, because one of the key red flags of a debt collection scam is when a so-called “debt collector” withholds information from you.
If you request a debt validation letter and the collector doesn’t honor it, you’re probably dealing with a scam.
The bottom line is that you should request debt validation before allowing a debt collector to go any further.
first step: make sure you haven’t received a debt validation letter yet
Before you send a debt verification letter requesting debt validation, you must be absolutely sure that you do not already have a debt validation letter in your possession.
hopefully you keep track of your mail and if you don’t, now is the time to start. you should review the notices you received and look for a debt validation letter.
You are looking for a letter that includes the following details:
- exactly how much money you owe
- the source of your debt
- notice that, unless you dispute the debt within thirty days after the collector of debts was first reported to you, the debt will be considered valid
- notification that the collector will comply with requests for additional information, provided they are made within the thirty day period
- notification that the collector will provide verification if requested within thirty days
must also be sent by certified mail. That’s because certified mail debt collection letters are part of the legal requirements.
Without these elements, it is not a valid debt validation letter.
If you find that you have not received one of these letters, then it is time for you to send a debt verification letter.
what is a debt verification letter?
First things first: It is very important that you request verification by certified mail, not by phone.
That’s because the law only requires debt collectors to stop their efforts if you send the notice in the mail. so be sure to write your letter and send an actual physical letter by certified mail.
In this letter, you are going to ask for proof that the debt belongs to you. he wants the agency to provide hard evidence.
Your debt verification letter should include these elements:
- the date the debt collector originally contacted you
- if the initial contact was by phone or mail
- a debt validation request
Your debt verification should not include anything that could be construed as an admission of debt.
what are the benefits of sending a debt verification letter?
The biggest benefit of sending a debt verification letter is that once you send the letter, the debt collector is legally required to stop contacting you until you provide proof that the debt belongs to you.
this can do one of three things for you.
First, it might buy you some time and avoid being underreported to the credit reporting agencies.
Second, it can give you time to negotiate a settlement and pay off your debt before a debt collection attorney starts contacting you.
Third, it could prove that the debt collection agency is actually a scam. You could also discover an error in the amount the collector is requesting.
Either way, it’s a win for you. therefore, when you are first contacted by a debt collector, your first recourse should be to send a debt verification letter by certified mail so that you have evidence and proof of the debt.
how do you send a debt verification letter?
It can actually be done online using a website www.certifiedmaillabels.com.
Simply write your debt verification letter and save it as a pdf file. You can then upload the pdf letter and this company will print it, take it to the post office, mail it, and track the delivery of your letter by usps. they even keep a copy of your debt verification letter and postmark, mailing date, and tracking and delivery information for ten (10) years within their personalized mail portal. You should keep careful records of your communication with debt collectors. if your case goes to court or you need to prove you submitted a verification letter, you want the data to back it up.
Luckily, that’s what you get when you send letters online at this website with certified mailing labels.
Certified mail is a service provided by the United States Postal Service. the service provides information on when the letter was sent, when it was delivered, etc. requires the signature of the recipient at the time of delivery.
With certified mail labels, you can even receive an electronic delivery confirmation report in your inbox, so you can easily store the information surrounding your letter.
certified mail labels make sending debt verification letters more convenient
certified mail labels make it easy to purchase and print the certified mail label for your debt verification letter.
This means you can easily send a letter by certified mail and save yourself a trip to the post office.
even better, you can use our print & mail service. If you upload your pdf debt verification letter, we can print it and mail it the same business day.
The online process will save you even more time and hassle.
send your debt verification letter with certified mail labels today
Don’t let debt collection notices force you into hiding. now you know the right way to respond to all those letters and phone calls.
If you want to protect your rights as a debtor by sending a debt verification letter today, sign up for a free account.
If you have more questions? Call us at (800) 406-1792! we’ll be happy to help guide you through the process.