to pay the money to the collection agency

Guest 0.10 Dollars($)

I have been approached by a collection agency to pay the debt that I owe to a particular creditor to them. Should I pay them directly?

Samantha · Posted: Wed Jan 25, 2006 10:55 am Post subject:

Hi Robertranger,

There are agencies to collect money on behalf of the creditor, but you have to certain documents from them as proof before you hand them over the cash.

There may be problems with collection agency or with the amount of money that you need to pay. Even you may not remember whether you actually owe any money to the creditor.

They need to provide you with debt validation as proof before you pay anything to them.

God bless you.

For MortgageFit,
Samantha

Guest 0.10 Dollars($)

What is to be provided as debt validation by the agency in that case?

Samantha · Posted: Wed Jan 25, 2006 11:16 am Post subject:

Hi Robertranger,

Following are the areas for which the agency needs to provide as debt validation -

They should provide proof of owning the debt or a proof that they have been assigned for the debt.
They have to show complete payment history starting from the original creditor.
A copy of the loan agreement originally signed by you.

You are required to be satisfied by these proofs before you pay them off.

God bless you.

For MortgageFit,
Samantha

Guest 0.10 Dollars($)

It is interesting and seems to protect us from a fraud approach. What is this debt validation actually?

blue · Posted: Wed Jan 25, 2006 12:04 pm Post subject:

As mentioned by Samantha, there are debt collectors who may have purchased a debt from the creditor or have been assigned to collect a debt.

But problems do occur. Often it happens that you don't have any idea of the debt for which you have been approached or it may happen that you never owed in the first place.

A validation of debt is the proof to be provided showing that the collection agency has been assigned the right to collect a debt on behalf of the original creditor along with other proofs on the loan documents.

Regards,
Blue

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Do I have rights to ask for it?

Samantha · Posted: Wed Jan 25, 2006 12:24 pm Post subject:

Hi,

Yes you do have rights as per Fair Debt Collection Practices Act. According to this Act, the debt collector has to provide the details within five days of initial communication which includes -

The amount of debt owed.
The name of the creditor to whom you owe it.
There has to be statement mentioning that if there is no dispute from your side within your side within thirty days of the notice, the debt will be considered valid.
If there is any dispute on your part raised within thirty days after the receipt of the notice, then verification of the debt has to provided and the dispute has to be cleared.

The debt collector has to cease the collection until he provides verification in case of any dispute.

Hope this information will help you.

God bless you.

For MortgageFit,
Samantha

Guest 0.10 Dollars($)

do I have the right to the pay original creditor to clear my debt or do i have to pay the collections company?

Samantha · Posted: Thu Feb 09, 2006 2:20 pm Post subject:

Hi,

Welcome to MortgageFit Forums.

It depends on some conditions. If the creditor has assigned the collection agency to collect the debts then you can discuss with the creditor and pay him off directly.

But if the creditor has sold the debts to the collection agency then you have to make your payments to the collection agency only.

God bless you.

For MortgageFit,
Samantha

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