Credit Cards can be a fantastic resource.

You are going to write a letter asking them to validate that the debt in question is yours. Tell them that they are incorrectly reporting negative information to the credit bureau that isn’t yours and demand that they provide proof that the account is yours via signed contract with your signature on it. The reason you need to deal with them by mail is because most of them have your information stored on a computer so in most cases they won’t be able to provide you a copy of the original contract. Having your information on a computer is called evidence of debt, not proof of debt. . The first legal step in dealing with the collection agencies should be the ‘Debt Validation’ method. Debt validation is a federal right granted under the Fair Debt Collection Practices Act (FDCPA). The procedure begins with ‘initial communication’ from the creditor in the form of phone calls, written letters or, even summons to appear in the court. Then within a period of five days they must notify in writing, the debt validation rights of the concerned person. . A collector might file a lawsuit after the time for filing a lawsuit has passed but if you know your statute of limitation, you should be able to dismiss such suit. If such collection is beyond the time limit for a lawsuit, you might choose to contact the collection to negotiate your debt or ignore the debt. If you choose to negotiate your debt, you should know that as long as your collector knows that you are aware of the SOL, he is willing to settle on what amount you are offering. If you choose to ignore the debt, after the period of reporting limit, the debt would have no effect on your credit report. . A verified name and address will not provide the evidence that you owe money from someone after all. There is no account validation process required in a debt verification letter. The prevalent harassment in the debt collection industry would still be possible. Given that, this verification letter is not an element in learning how to dispute a debt. .