Having to deal with a debt collection agency is one of life’s most unpleasant events. From calling you at home all day to threatening to seize your property, far too many third party debt collectors violate a federal consumer protection law passed by the United States Congress.
Under the Fair Debt Collection Practices Act (FDCPA), a bill collector such as Action Financial Services, LLC is prohibited from harassing and intimidating consumers into taking care of outstanding credit card and personal loan accounts.
The FDCPA also addresses the time-tested debt collection tactic of using deception to trick consumers into taking action on a debt they otherwise would not have taken. From lying about the balance due on a debt to impersonating another organization, debt collection agencies have several ways to deceive consumers.
The most effective way to stop deceptive debt collection practices is to demand a third party debt collector send you a debt validation letter.
Overview of a Debt Validation Letter
Just because a bill collector says you owe a certain amount of money on a delinquent credit card or personal loan balance does not make the claim true. Before you even think about complying with a debt payment demand, you should confirm the debt is your financial obligation to pay off.
This is accomplished by requesting a bill collector send you a debt validation letter. After you review the debt validation letter sent by Action Financial Services, LLC, you have the right to send your own version of a debt validation letter that asks for clarification on the information presented in the original debt validation letter.
By law, third party debt collectors must send out a debt validation letter within five days after making the first contact with consumers.
Why a Debt Validation Letter Matters
In addition to verifying the information concerning your debt, a debt validation letter is also an effective strategy to use for getting an overly aggressive bill collector off your back. The request for a debt validation letter might also deter a company that does not have enough accurate information to pursue a debt you allegedly owe.
Even if you plan to take care of an outstanding credit card or personal loan account, a debt validation letter ensures you will pay the correct amount. With the date of last activity on the account listed at the top of the letter, you can determine whether the debt is nearing the end of the time set by your state for the statute of limitations.
You Can Seek Monetary Damages
Although the FDCPA is best known for its clear outlawing of numerous overly aggressive debt collection tactics, the federal consumer law also grants consumers the right to seek monetary damages.
The most common form of monetary damages sought in FDCPA cases is called statutory damages. With a maximum financial award of $1,000, statutory damages cover every FDCPA violation committed by the same debt collection agency.
Never allow a third party debt collector to come after you, without first requesting the company back ups its claims by sending you a debt validation letter. Schedule a free initial consultation with a licensed FDCPA attorney to ensure you benefit from every provision written into the federal consumer protection law.
*Disclaimer: The content of this article serves only to provide information and should not be construed as legal advice. If you file a claim against Action Financial Services, LLC, or any other third-party collection agency, you may not be entitled to compensation.