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Debt Validation Letter
Credit Card Billing Dispute Letter
While you can call your creditor to report the error, the law specifically states that you should report the error in writing. There’s no harm in doing both. In your letter, list the billing error and state why it’s inaccurate. Then, the credit card issuer will acknowledge your letter and take steps to resolve your complaint. Make sure you report the errors quickly so you’re not held liable for them.
Debt Settlement Offer Letter
In the letter, state that you’re having financial difficulty and would like to settle your account. List the amount that you’re able to settle for and wait for the creditor to respond. If the creditor accepts your settlement offer, be prepared to send your payment before they take the offer off the table.
Sending Your Letters
How about you all? What rights or strategies have you exercised in order to help payoff (or better manage paying off) your debt?
Have you tried sending in any of the 4 letters mentioned above?
Share your experiences by commenting below!
Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.
- Thanks so much for such an informative article, Frank! I must admit that learning about all of these rights people have/techniques that people can use to help manage their debt payoff made me feel quite in the dark, as I have fairly little experience in this area.
- However, I imagine that a lot of people are in the same boat as me in that they don’t know that many of these rights/strategies are available to them. So, thanks for laying them out in plain sight for us to analyze!
- It’s also interesting that despite all of the technology available to debt-companies these days, there are apparently still many official actions that can only be managed and handled through good ole-fashioned mail! haha This was also the case I experienced recently when opening a self employed 401(k) account with Vanguard. They required that the hardcopy application be sent in via the US Postal Service.
- @ Debt validation letter –
- Interesting! This sounds like a good way to at least delay (or maybe eliminate all-together) being bothered by certain debt collectors.
- One thing I’m curious about though is what exactly is required for “valid proof” that the debt they’re collecting is correct? Is there a standard form for this, or can it just be an “overdue balance” statement from the credit card company?
- @ Receiving receipt confirmation when sending important debt reduction letters –
- In my experience, whenever you’re sending a letter either by physical mail or email that is not SPECIFICALLY requested by the receiving party, you always have to be prepared for the likelihood that it will simply be ignored and/or lost. After all, if they’re receiving hundreds of pieces of mail per day, why should they place your note at the top of the pile?
- As such, it definitely makes sense to have a way to validate that the receiving party actually did receive the letter. Paying the $0.30 extra for delivery confirmation can go a long way to helping you achieve your goals in this case!
- @ Not being scared of your creditors –
- Lastly, I think that another important thing to point out with the whole process of paying off your debt is to avoid viewing the company to which you owe a debt as some powerful, evil entity that has the power to SUCK OUT YOUR VERY SOUL!
- As you can imagine, at the end of the day, the company to which you owe money is just made up of normal people who want to accomplish their goals and add value to others’ lives. Because of this, it actually is in THEIR best interest AS WELL AS YOURS to work with you in order to get you to pay off your debt.
- Often, I think people are surprised at how flexible debtees can be in helping their debtors pay off their debt, either by being flexible with interest rate or even payoff terms overall. Typically, this flexibility can only be discovered if you take action and ask about what you can do. After all, the worst that can happen is that they say, “no.”
***Photo courtesy of http://farm3.static.flickr.com/2105/2510296904_408a716826.jpg