The job of debt collectors is not just to collect debts immediately, but involves a validation process. This process is time-sensitive since it must be done within 5 days from the first communication sent to the debtor. The corresponding notice, then will state the debtor’s right to dispute the debt validity within 30 days. Also, the debt validation notice can be included in the first communication if it is in a form of a letter, but if the notice is made through a phone call, then the creditor should send a debt validation letter. This is the initial process of debt settlement and best assisted by CTL Law.

If the borrower receives the letter stating the debt, but did not in any way write the creditor of any dispute or discrepancy within 30 days, the debt collector will assume that the debt stated is valid. Within the 30-day period, the debt collector is allowed to continue collecting the debt until he receives the validation request.

In order to make the validation request legally valid, it must be in the form of a letter since a phone request is insufficient because it cannot protect the debtor’s right. For a borrower, a validation letter means that you are allowed to dispute the debt being collected to you whether or not it involves the entire debt or just part of it under the original creditor’s name. By the time the debt collector or a professional debt collection agency like Sauvageau & Associates will receive your validation request, they will have no right to contact you again by any means, until they have provided the requested information.

When your debt validation request is done, send it through a certified mail so that you will have a return receipt. By doing this, you have a proof that the letter has been mailed. If you want to file a case against your debt collector, the marked mail and return receipt are strong evidences that can help strengthen your case too. You can show to the court that the letter has been sent within the time frame of 30 days and the debt collector a professional debt settlement expert such as Francois Sauvageau has received it.

If there are debt collectors contacting you right now about a debt you are not sure of if it is yours, ask them to send proofs of the debt because this is a legal process of debt settlement called debt validation.

Why do you need to request for a debt validation instead of paying immediately upon the acceptance of receipt of the demand letter?

A validation is an important process since debt collectors are known to mail bogus debts, so do not get stressed when you receive a letter from them because not all debt collectors are legitimate. The letter you have received may look legitimate, but you have to remember that with today’s IT advancements, it is easy to get enough information like financial dealings of a person to create fake debt collection notices.

Paying the debt immediately upon the receipt of the demand letter is not advisable. However, when you want to pay earlier than requested, always ask for a proof, it is every debtor’s right.



How Did Your Contact Details Get To The Collection Settlement Agent?

Debtors will find out when their account is with a collection agency in three ways: they start to receive phone calls from debt collectors, they receive letters from collection agencies or they will discover the account when they check their credit reports. Often, debtors will be able to find out a collection account for their credit reports when an application has been turned down. This is where a debt settlement program starts.

If you have received a demand letter from the debt you owed, do not get too anxious instantly because there is a legal way to address this matter. You may ask, who sent the collection letter? Who provided my contact details?

The only way to know is through your debt settlement collector. Upon receipt of the letter, you will also receive phone calls from the debt collection agency or another letter which states the name of the company that sent the account for collection. However, if you only knew the account upon reviewing your credit report, you need to contact or inform the collection agency and ask them about the creditor.

In most cases, to contact the collection agency is not a problem since their phone number must appear on your credit report, but if there is no information; search engines can help you find the phone number or address of the collection agency. Once you have their contact number, call them immediately. In doing this, you will just have to understand that they will be asking you with personal information in order to access your account such as your name, address and security number, especially when you do not have a copy of the account number they assigned to you.

It should be understood that once you call the collection agency, they will do all of the necessary strategies so that you will be pushed to make payment arrangements or pay the account. First, never acknowledge or inform them that you are the owner of the account. Through this, you will be able to restart the debt’s statute of limitations, however, will give an advantage to the debt collector when they file a case against you. Prior to payment, always ask for a written bill, as well as, a confirmation of the validity of the debt before considering a payment.

You can make a debt validation letter to the collection agency and ask for proof that you are the owner of the debt. This proof should include information such as the original creditor so that it can help you determine if the debt is yours or legitimate. Do not get panicked when you receive a collection letter because the debt collector cannot collect from you and they cannot list the account on your credit report unless they have sufficient evidence of the debt.

If the collection was an error, for instance, it was sent by the original creditor to the agency in error, always find a proof of payment and include sending copies to the collection agency, the original creditor and most importantly, to the credit bureaus so that they can remove the account on your credit report. 

Why Should You Pay Old Debts?


Giving money to the collection agency assigned to you is like giving your lunch money to the schoolyard bully. However, it is a different story when you have a legitimate debt. Paying the debt you owed is always painful considering that the service or product associated with it has been consumed a long time ago.

 If you are thinking whether to pay the collection you owe or not, here are the major reasons why you should get rid of them for good and opt for debt settlement, instead.

  • When you settle the debt, you will be spared from frequent and even annoying calls for good. As long as you were not able to settle outstanding debt collections, expect that you will continue to get calls from the debt collection agency. You can make a cease and desist letter to end the calls from a certain debt collector, but collection accounts are always passed on to another collector, then you will still receive phone calls about the unsettled debt.
  • Get approved for loans and credit cards. Most of the banks will not approve your loan or credit card application if you have an outstanding collection account on your credit report. This will mean no car loan, no mortgage and no credit cards. Also, even employers will not hire you if you have a low credit report because of debts you have not paid. If you receive a demand letter of the debt you owed, paying the account will not be removed from the credit report, but the good thing is that a $0 balance is way better than being delinquent.
  • Improve credit score. Some people might think that debt accounts will be removed from their credit reports after 7 years or as they grow older, they have a lesser effect on their credit scores. While this could be true at times, debt settlement is still key.
  • Avoid the risk of a case filed against you. Most debtors assume that these debt collectors will not waste their money and time filing cases over small collections. This assumption is not always true these days, in fact, debt collectors are looking for ways and means to collect, given that the outstanding collection is within the terms of the statute of limitations. There is a big possibility that you will be sued. A case against you can mean a public record that can tarnish your credit report and a court judgment. If you will not pay even with the case, the debt collector will get the court’s permission so that they can gather whatever you have.
  • You are close to becoming debt-free. Paying a debt collection means that you have lesser debts to pay and one less company that you owe money. Some debtors think that they lost a battle when they pay after resisting for years or months. Honestly, it’s not true. Paying a debt is better for your credit report and you will have a better financial management.

Paying a debt collection is always the best thing to do.