Stop Collection Agencies Cold! Make them Validate the Debt!
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So you've followed my advice and have quit paying your credit cards and unfortunately are being sued. Now what?
One recourse is to make the collection agencies “Validate the Debt”. Asking a collection agency to validate the debt is like showing a crucifix to a vampire! You see if the collection agencies cannot prove that they are the lawful creditor and that the debt is truly owed then you win. They must prove that they have the right to collect a debt from you by showing the original agreement that you signed with the original creditor and also in some cases providing the receipts of your purchases. If they cannot show this ...YOU WIN!
This technique only works with debt collection agencies, you cannot use this with the original creditors like Bank of America or Citibank etc. Once the original creditor has written off the debt, the debt may be sold for pennies on the dollar to whomever wishes to buy it. It may be sold over and over again. The original creditor has already gotten their tax write off and they are now out of the picture, you are left to wrangle with the collection agencies who are trying to squeeze whatever money they can from you.
How do you know if the company that is contacting owns your debt? Is the amount that they are suing you for correct or have they added on countless fees and exorbitant interest? You must request this in writing or if you have waited and are going to court you can request it in court.
This is one reason why I think it is best to never speak to debt collector over the phone. You must never admit that you owe the debt. If you admit that you owe the debt then you are in essence pleading guilty, giving up and letting your fate fall where it may. You can still request a validation of the debt but you are just making things more difficult on yourself.
Very few collection agencies are able to validate the debt. The reason for this is that debt is sold, resold and then sold again. Who knows where the original agreement is. Just requesting that the agency verify the debt will stall matters (until the statute of limitations has run out) or in the best case scenario get you off the hook completely.
Now, many people have written to me ..chiding me for encouraging people to run out on their debts. So I would like to take a few minutes to explain why I am doing this.
We no longer live in a country that is following the rule of law. We have been taken over by an elite group of banksters that are dead set on bankrupting this country. These banksters have lobbyists, run corporations, are in government and can pretty much do whatever they want. Is it fair for them to bail themselves out at tax payer expense? No! And yet that is exactly what they have done to the tune of trillions of dollars. Who do you think pays for those bail outs? We, the tax payers do! When trillions go missing from the Pentagon, who paid for that? WE DO. When inflation creeps into our system causing milk, bread and chicken to cost more than a gallon of gas who is paying the lions share of their income for those hikes? WE DO.
We are in a financial war and this is one way that we can fight back, if we were not I would not be encouraging this. But, make no mistake we are in a war. So, I don't want to hear about the ethics of paying these banksters after they have completely stolen this country. I don't want to hear that we should be paying our debts of $1,000, $5,000 or $10,000 dollars when they have stolen literally trillions of dollars. This is one way you can fight them and I hope you do just that!
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Thanks ElderYoungMan, I'm sure I will get my fair share of naysayers on this one!
Hi Brie, thank you for sharing this very interesting point of view on debts. I hear you, about the American situation, financially, and how a lot is going on that is not fair. I have to say also, that I would not be comfortable trying to not pay back money lent to me. This is just me personally, and I mean no offense, but if I agreed to borrow it and pay it back, and do not do so, then I have lied and broken a promise. Also, it is me asking others to pay for my "stuff." I hope I am making sense. I do struggle with what a lot of evil people have done and are doing in and to the country and especially to particular groups in it. That is wrong. I still need to try to right as much as I am able though. Thanks for sharing your thoughts.
oceansnsunsets: What if the money you "paid back" were being used to harm others, would you still feel this way? What if you didn't know that until after you had borrowed the money?
Brie, this gets tricky, because I hear you in regards to not wanting to reward (and possibly even punish?) those that are using money to hurt others. The question gets a little bit more philosophical in nature, but then we must also think about bottom lines, and what is most important. There may be a forcing of a cause and effect here that I don't think necessarily is key. Am I required to keep my promises only if I agree with the morality of what others are doing? Or another question might be, should I not do what I said I would do, if I think others are doing bad things? Couldn't someone rightly ask me if I am maybe repaying evil with evil? Its a tough call for me, and you have me really thinking now more than before. Does what I am saying make any sense? I applaud that you don't like them hurting other people.
What you are saying makes perfect sense because if it weren't for the high crimes and misdemeanors that our government is doing I would agree completely. However, most people are just now waking up to what atrocities are being done in our name by our government. To me paying these banks would be like paying Hitler. If you really knew what they were doing I think you would agree.
I understand that this may sound weird but I think it's actually patriotic to withhold money from them.
Who is awesome? Brie Hoffman is awesome!
I hope that means you liked the article!
This is very interesting, I don't suppose you know if this would work in the UK?
I don't know but you might call a solicitor in the UK and ask them, they would know.
useful information...
Thanks Kamran100
I wonder if this applies to Canadians... will definitely look into it. Thank you for the tip Brie.
Please let me know when you find out, ok.
You might be my new hero!
I love being a hero!
Technical question: After 7 years, a debt can be bought and put back on your credit report. Does this mean that the original creditor has already, through tax write-offs, been reimbursed for this debt and now a credit agency is just trying to get more money from the original debt? Is that how it works?
After the statute of limitations has passed (which is different in every state) you are off the hook. And, yes to your question about the original creditor. And Yes the collection agencies buy the debt for pennies on the dollar and are trying to squeeze out any money they can get.
Brie,
Good day to you and everyone who might happen to be reading this article, this is one subject I know very much about. Why? because not only did I do this for over 25 years but at one time I owned a collection agency, Yes evrything you have talkk about is so very true. And to add my two cents let me let you in on something else, if you owe a debt and it hasn't been paid in years and just by chance you are getting closer to the statute of limitation and decide to pay one dime, that dime just started the process from day one in other words you reactivate the loan. Not many people are aware of this. And yes most of these loans are sold just like your mortgage is sold. However the difference is that a credit card debt does not have value after it is sold simply because it has been written off the banks books as a loss which they get the ability to get a tax break on. Which is another story all together. so let me stick to what I really want to reveal, which is are by the way the people that buy these debts. well for awhile it was mostly credit agencies, however withing the past decade or so it has been law firms, Yes law firms who use the words a call from attorney so and so's office, which for the the regular person sets off immediately trigers off more loss and of course court. Not so for the most part it is quite a scam simply because for the most part these accounts are way past the statute of limitation. There for making it illegal to proceed with the collection. well the game goes like so if you have no knowledge of the laws that apply to debt collections and most people don't, it leaves a window of apportunity for these maggots who prey on the knowledgeless. One other thing is that by law a collection agency of any kind can only call you 3 times in one day, the way it works is like this they can call you at your home in the morning however it must be 9am whereever you reside, next is at your POB (short for place of employment) only once a day
and at night no later than 9PM. It is illegal to mention lawsuit if they really have no intent on doing so and following through. The best thing to do when in a debt situation is to immediately write what is called a cease and desist letter and make sure it is mailed certified.
you want to indicate that you want no calls at home or at your place of business, they can only communicate with you via mail. This is the Law and they must oblige by it in accordance to the laws of the fair debt collection practices act 95-109. I can write on this subject forever however what I have written is as accurate as I possibly can get with my limited time I hope this will help any and everyone in this situation, I am willing to answer any questions of this matter to whom ever desires, just go through Bries hub (only if she doesn't mind) Thank You.
Thanks for the added insight and validation Bolt..it is much appreciated.
Thank You Brie, If this websight only had word spell...it would be a bit more comforting, as I reread it, I noticed so many mistakes it made me sick....this happens to me often because I have a tendency to rush....a bid impatient and restless....there were a few things I would like to add to this subject of interest...and that is that number one from experience most bill collectors have worst credit than the people they are trying to collect on. Also if a person decides to pay off a debt and btw this is doable, you should first demand in writing prior to paying the debt that you want this debt striken from all credit reporting agencies. Not only is it doable it is doable even if you are settling the account. For the most part when a debt reaches a certain point the credit agency is authorized to settle most times up to 50%, however they don't mention that because it cuts into their cash flow if you know what I mean. Oh and one interesting thing is the worst people to collect from for your information are Police officers, Lawyers, Doctors and the worst of the worst your not gonna believe, are preachers...!!!!!!hope this will open up some eyes...Thank You Brie.
Wow, how very interesting Bolt.
yes people think that if you run away from debts you are "getting away with is"
But you aren't, you now have no access to the benefits of obtaining credit for several years. So, you make your choice and do whatever is best for you. I think it would be best if society wasn't hooked on credit and more people live on cash
I've lived on nothing but cash for the past 4 years, not only has it been easy it's been freeing!
ElderYoungMan Level 3 Commenter 16 months ago
GO BRIE!!!!