Debt Dispute: A Top Secret to Topple Your Creditors?
January 20, 2012 | Comments | Blogs & Blogging
It is common for my clients or readers to wonder how to dispute a debt. The first thing I like to explain is what dispute actually means. Once you understand the definition of dispute, you will begin to see how most people in debt needs to dispute their debts first. In a nutshell, dispute means to debate, disagree with, or argue something.
It is important to realize that disputing a debt requires more effort than calling up your creditor and telling them that you disagree that you owe them money. Effective disputes require certain steps and accurate timing. I know these steps so well that significant portions of my clients end up free from debt, or they take advantage of opportunities to settle with creditors or debt collectors for a fraction of their original debt. I recommend to continue learning if you would like these outcomes for your specific debt situation.
Even after knowing the definition of what disputing a debt means, many consumers choose to attempt a dispute over the phone. Disputing debt over the phone is basically useless. It provides you no evidence in court that the debt was disputed. This leaves you completely unprotected in the event that a creditor or debt collector decides to sue. Not to mention the fact that the creditor or debt collector will not treat you any better and will most likely harass you even more aggressively.
Many credit and debt counseling services will promote the use of debt verification letters. The purpose of a debt verification letter is to demand that the creditor or debt collector verifies that they have your correct name and address. There really is no point to sending these letters. Anyone can go on the Internet and find your name and address. A name and address proves in no way that you owe someone money.
There are a few other problems with debt verification letters. First, they do not stop the creditor or debt collector from harassing you. Second, they provide no proof that you had an account with the creditor or debt collector. Third, they provide no legal protection. Due to these facts, debt verification letters provide little help when learning how to dispute a debt.
I will bet that after hearing all of the ways you shouldn\’t dispute your debt that you are wondering what the best way to dispute a debt actually is. The way that I have seen the best results when disputing debt is through the use of debt validation letters. Debt validation letters are much more powerful than debt verification letters because they are backed by the FDCPA or Fair Debt Collection Practices Act. This Act sets forth specific requirements for debt collectors and creditors to provide accurate and validating information on any account that a request for validation is made.
The purpose of debt validation letters is to eliminate wrongful collection from debt collectors. By sending a well-written debt validation letter, you force your debt collector to provide complete and validating information on your account. The fact of the matter is that most debt collectors do not have the proper information to completely validate their collection attempts on your account. Until this validation is made, the debt collector cannot continue to attempt collection on your account.
Now that you understand more about how to dispute a debt, I would suggest taking a mini course online to learn more about debt validation letters. The knowledge you can gain by doing this will be extremely valuable to help you get through your debt dispute and validation process.
Learn more on how to dispute debts. Stop by Kente Wallman\’s site where you can find out all about debt verification letters and the law and what it can do for you.
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