Greetings Debt Dumpers...
In the downloadable version of my Dump It! book (www.dumpdebtgrowwealth.com) there are 52 Keys to dumping your debt. Here is a sample Key and a quick start letter to get creditors to prove you owe money.
I am yours in success,
Randall
Key #2
What to do When You’re Having a Debt Disaster
Debt disasters are like being in the emergency room of a hospital and needing immediate care. Debt disasters are being evicted, home foreclosure, having your car repossessed, not being able to buy food or anything that has an immediate impact on your housing, your health or your critical transportation, survival or family needs.
If you are facing one of the disaster situations above contact your creditors immediately, explain the situation to them and tell them you want to work out a payment plan. You want to make sure they understand that you want to pay off the debt and that you need help in the short term. Many creditors will cut your minimum payments down for a short while to help you out. You will, however, have to stop using the card until things are back on an even keel.
If the creditors play hardball, you may have to consider bankruptcy, but that is really a strategy of last resort. For more information on bankruptcy, the new bankruptcy bill and how it can affect you and your family please see the last chapter of this book. It’s important for you to know.
You do have some recourse when you get into this kind of situation that can buy you the time you need while you work on a solution. Using the FDCPA, the Fair Debt Collection Practices Act, you can request from any creditor documentation of your debt. It takes a few weeks for them to respond and while they are responding you have a little breathing room to get your plan together.
If you know you owe the debt to a credit card company I suggest that you simply call them first. Most companies are willing to work with you. However, if they are not, or you are being hassled, send them your version of the Quick-Start sample letter that follows this key.
No matter what, you must own up to the fact that you do owe these debts and if you just don’t pay your debts you'll wind up in much worse shape than if you simply deal with the situation now, as hard as that may be.
Now if you are facing eviction or foreclosure you may need a lawyer to help, but most creditors would rather deal with you in an honest and open manner and get the debt paid because it costs them a ton of money to go through the process of eviction or foreclosure and then to have to re-rent or sell your property.
Quick-Start Letter: Validating Your Debt
Today’s Date
Your Name
Your Street Address
Your City, ST 00000
Lending and Collections Guys
876 No Way Drive
Atlanta, GA 00000
Re: Acct # (your account number here)
To Whom It May Concern:
This letter is being sent to you in response to a notice sent to me on (date of the notice). Be advised that this is not a refusal to pay, but a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (b) that your claim is disputed and validation is requested.
This is NOT a request for “verification” or proof of my mailing address, but a request for VALIDATION made pursuant to the above named Title and Section. I request that your offices provide me with competent evidence that I have any legal obligation to pay you.
Please provide me with the following:
What the money you say I owe is for;
Explain and prove to me how you calculated what you say my debt is;
Provide me with copies of any documents that show I agreed to pay what you say I owe;
Identify the original creditor;
Prove to me that the Statute of Limitations has not expired on this account
Show me that you are licensed to collect in my state
Provide me with your license numbers and Registered Agent
At this time I will also inform you that if your offices have reported invalidated information to any of the 4 major Credit Bureau’s (Equifax, Experian, TransUnion, or Innovis Data Solutions) this action might constitute fraud under both Federal and State Laws. Due to this fact, if any negative mark is found on any of my credit reports by your company or the company that you represent I will not hesitate in bringing legal action against you for the following:
Violation of the Fair Credit Reporting Act
Violation of the Fair Debt Collection Practices Act
Defamation of Character
If your offices are able to provide the proper documentation as requested in the following Declaration, I will require at least 30 days to research the documentation and situation and during such time all collection activity must cease and desist.
Also during this validation period, if any action is taken which could be considered detrimental to any of my credit reports, I will consult with my legal counsel. This includes any listing any information to a credit reporting repository that could be inaccurate or invalidated or verifying an account as accurate when in fact there is no provided proof that it is.
If you or your assigns fail to respond to this validation request within 30 days from the date of your receipt, all references to this account must be deleted and completely removed from my credit file and a copy of such deletion request shall be sent to me immediately.
I would also like to request, through this letter, that no telephone contact be made by your offices to my home or to my place of employment. If your offices attempt telephone communication with me, including but not I will have no choice but to file suit. All future correspondence and communications with me MUST be done in writing and sent to the address noted in this letter by United States Postal Service.
This is an attempt to correct your records; any information obtained shall be used for that purpose.
Sincerely,
Your Signature
Your Printed Name
Comments