Can I sue collection agencies for not providing debt validation?

If you can prove the debt collector has violated your rights under the FDCPA, you can sue in federal or state court for up to $1,000, including damages. 5 You should also report violations to the Federal Trade Commission (FTC).

Does a debt collection agency have to prove you owe the debt?

If you get a letter saying you owe money on a debt you don’t recognise, or which you thought you had paid off, you need to challenge the creditor to prove that you do owe the money. We would ask a debt collector to provide evidence to show that they are seeking repayment from the correct person.

Do creditors have to prove a debt?

At a minimum, it must produce: A copy of the original written agreement between the parties, such as the loan note or credit card agreement, preferably signed by you. If the account has been sold to another creditor, then that creditor must prove that it has the right to sue to collect the debt.

Can a debt collector refuse to validate a debt?

Sometimes, collection agencies will stop collection activities and return the account to the original creditor rather than validate it, which is perfectly legal. Either way, not being able to communicate with you provides plenty of incentive for the debt collector to resolve the debt validation notice.

How does a collection agency contact a borrower?

The creditor can package multiple delinquent debts together and sell them as a bundle. Once the collection agency has the debt, its collectors begin to contact borrowers by phone call, text message, letter, or even by showing up at their homes. If borrowers pay the debt, the agency stops reaching out.

What to do if you are contacted by a debt collector?

If you are contacted by a debt collector, the Fair Debt Collection Practices Act (FDCPA), and many state debt collection statutes, provide you with an important tool: the verification letter.

Is it legal for a debt collector to harass you?

Often, a debt collector may not have the appropriate records it needs to collect the debt from you legally. Or perhaps you already settled the collection, but the collection agency is harassing you anyway. Or maybe they’ve accused you of owing on a debt you don’t actually owe.