Stop Collection Agencies Cold! Make them Validate the Debt!

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So you've followed my advice and have quit paying your credit cards and unfortunately are being sued. Now what?


One recourse is to make the collection agencies “Validate the Debt”. Asking a collection agency to validate the debt is like showing a crucifix to a vampire! You see if the collection agencies cannot prove that they are the lawful creditor and that the debt is truly owed then you win. They must prove that they have the right to collect a debt from you by showing the original agreement that you signed with the original creditor and also in some cases providing the receipts of your purchases. If they cannot show this ...YOU WIN!

This technique only works with debt collection agencies, you cannot use this with the original creditors like Bank of America or Citibank etc.  Once the original creditor has written off the debt, the debt may be sold for pennies on the dollar to whomever wishes to buy it.  It may be sold over and over again.  The original creditor has already gotten their tax write off and they are now out of the picture, you are left to wrangle with the collection agencies who are trying to squeeze whatever money they can from you. 


How do you know if the company that is contacting owns your debt? Is the amount that they are suing you for correct or have they added on countless fees and exorbitant interest? You must request this in writing or if you have waited and are going to court you can request it in court.


This is one reason why I think it is best to never speak to debt collector over the phone. You must never admit that you owe the debt. If you admit that you owe the debt then you are in essence pleading guilty, giving up and letting your fate fall where it may. You can still request a validation of the debt but you are just making things more difficult on yourself.


Very few collection agencies are able to validate the debt. The reason for this is that debt is sold, resold and then sold again. Who knows where the original agreement is. Just requesting that the agency verify the debt will stall matters (until the statute of limitations has run out) or in the best case scenario get you off the hook completely.


Now, many people have written to me ..chiding me for encouraging people to run out on their debts. So I would like to take a few minutes to explain why I am doing this.


We no longer live in a country that is following the rule of law. We have been taken over by an elite group of banksters that are dead set on bankrupting this country. These banksters have lobbyists, run corporations, are in government and can pretty much do whatever they want. Is it fair for them to bail themselves out at taxpayer expense? No! And yet that is exactly what they have done to the tune of trillions of dollars. Who do you think pays for those bail outs? We, the tax payers do! When trillions go missing from the Pentagon, who paid for that? WE DO. When inflation creeps into our system causing milk, bread and chicken to cost more than a gallon of gas who is paying the lions share of their income for those hikes? WE DO.


We are in a financial war and this is one way that we can fight back, if we were not I would not be encouraging this. But, make no mistake we are in a war. So, I don't want to hear about the ethics of paying these banksters after they have completely stolen this country. I don't want to hear that we should be paying our debts of $1,000, $5,000 or $10,000 dollars when they have stolen literally trillions of dollars. This is one way you can fight them and I hope you do just that!

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Comments 34 comments

ElderYoungMan profile image

ElderYoungMan 5 years ago from Worldwide

GO BRIE!!!!


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

Thanks ElderYoungMan, I'm sure I will get my fair share of naysayers on this one!


oceansnsunsets profile image

oceansnsunsets 5 years ago from The Midwest, USA

Hi Brie, thank you for sharing this very interesting point of view on debts. I hear you, about the American situation, financially, and how a lot is going on that is not fair. I have to say also, that I would not be comfortable trying to not pay back money lent to me. This is just me personally, and I mean no offense, but if I agreed to borrow it and pay it back, and do not do so, then I have lied and broken a promise. Also, it is me asking others to pay for my "stuff." I hope I am making sense. I do struggle with what a lot of evil people have done and are doing in and to the country and especially to particular groups in it. That is wrong. I still need to try to right as much as I am able though. Thanks for sharing your thoughts.


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

oceansnsunsets: What if the money you "paid back" were being used to harm others, would you still feel this way? What if you didn't know that until after you had borrowed the money?


oceansnsunsets profile image

oceansnsunsets 5 years ago from The Midwest, USA

Brie, this gets tricky, because I hear you in regards to not wanting to reward (and possibly even punish?) those that are using money to hurt others. The question gets a little bit more philosophical in nature, but then we must also think about bottom lines, and what is most important. There may be a forcing of a cause and effect here that I don't think necessarily is key. Am I required to keep my promises only if I agree with the morality of what others are doing? Or another question might be, should I not do what I said I would do, if I think others are doing bad things? Couldn't someone rightly ask me if I am maybe repaying evil with evil? Its a tough call for me, and you have me really thinking now more than before. Does what I am saying make any sense? I applaud that you don't like them hurting other people.


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

What you are saying makes perfect sense because if it weren't for the high crimes and misdemeanors that our government is doing I would agree completely. However, most people are just now waking up to what atrocities are being done in our name by our government. To me paying these banks would be like paying Hitler. If you really knew what they were doing I think you would agree.

I understand that this may sound weird but I think it's actually patriotic to withhold money from them.


Wesman Todd Shaw profile image

Wesman Todd Shaw 5 years ago from Kaufman, Texas

Who is awesome? Brie Hoffman is awesome!


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

I hope that means you liked the article!


keepitnatural profile image

keepitnatural 5 years ago from Yorkshire, UK

This is very interesting, I don't suppose you know if this would work in the UK?


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

I don't know but you might call a solicitor in the UK and ask them, they would know.


Kamran100 profile image

Kamran100 5 years ago

useful information...


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

Thanks Kamran100


Genesis profile image

Genesis 5 years ago from Canada

I wonder if this applies to Canadians... will definitely look into it. Thank you for the tip Brie.


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

Please let me know when you find out, ok.


Jamie 5 years ago

You might be my new hero!


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

I love being a hero!


BigSerious profile image

BigSerious 5 years ago from Harrisburg, PA

Technical question: After 7 years, a debt can be bought and put back on your credit report. Does this mean that the original creditor has already, through tax write-offs, been reimbursed for this debt and now a credit agency is just trying to get more money from the original debt? Is that how it works?


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

After the statute of limitations has passed (which is different in every state) you are off the hook. And, yes to your question about the original creditor. And Yes the collection agencies buy the debt for pennies on the dollar and are trying to squeeze out any money they can get.


bolt1951 5 years ago

Brie,

Good day to you and everyone who might happen to be reading this article, this is one subject I know very much about. Why? because not only did I do this for over 25 years but at one time I owned a collection agency, Yes evrything you have talkk about is so very true. And to add my two cents let me let you in on something else, if you owe a debt and it hasn't been paid in years and just by chance you are getting closer to the statute of limitation and decide to pay one dime, that dime just started the process from day one in other words you reactivate the loan. Not many people are aware of this. And yes most of these loans are sold just like your mortgage is sold. However the difference is that a credit card debt does not have value after it is sold simply because it has been written off the banks books as a loss which they get the ability to get a tax break on. Which is another story all together. so let me stick to what I really want to reveal, which is are by the way the people that buy these debts. well for awhile it was mostly credit agencies, however withing the past decade or so it has been law firms, Yes law firms who use the words a call from attorney so and so's office, which for the the regular person sets off immediately trigers off more loss and of course court. Not so for the most part it is quite a scam simply because for the most part these accounts are way past the statute of limitation. There for making it illegal to proceed with the collection. well the game goes like so if you have no knowledge of the laws that apply to debt collections and most people don't, it leaves a window of apportunity for these maggots who prey on the knowledgeless. One other thing is that by law a collection agency of any kind can only call you 3 times in one day, the way it works is like this they can call you at your home in the morning however it must be 9am whereever you reside, next is at your POB (short for place of employment) only once a day

and at night no later than 9PM. It is illegal to mention lawsuit if they really have no intent on doing so and following through. The best thing to do when in a debt situation is to immediately write what is called a cease and desist letter and make sure it is mailed certified.

you want to indicate that you want no calls at home or at your place of business, they can only communicate with you via mail. This is the Law and they must oblige by it in accordance to the laws of the fair debt collection practices act 95-109. I can write on this subject forever however what I have written is as accurate as I possibly can get with my limited time I hope this will help any and everyone in this situation, I am willing to answer any questions of this matter to whom ever desires, just go through Bries hub (only if she doesn't mind) Thank You.


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

Thanks for the added insight and validation Bolt..it is much appreciated.


bolt1951 5 years ago

Thank You Brie, If this websight only had word spell...it would be a bit more comforting, as I reread it, I noticed so many mistakes it made me sick....this happens to me often because I have a tendency to rush....a bid impatient and restless....there were a few things I would like to add to this subject of interest...and that is that number one from experience most bill collectors have worst credit than the people they are trying to collect on. Also if a person decides to pay off a debt and btw this is doable, you should first demand in writing prior to paying the debt that you want this debt striken from all credit reporting agencies. Not only is it doable it is doable even if you are settling the account. For the most part when a debt reaches a certain point the credit agency is authorized to settle most times up to 50%, however they don't mention that because it cuts into their cash flow if you know what I mean. Oh and one interesting thing is the worst people to collect from for your information are Police officers, Lawyers, Doctors and the worst of the worst your not gonna believe, are preachers...!!!!!!hope this will open up some eyes...Thank You Brie.


Brie Hoffman profile image

Brie Hoffman 5 years ago from Manhattan Author

Wow, how very interesting Bolt.


MrPurple profile image

MrPurple 4 years ago

yes people think that if you run away from debts you are "getting away with is"

But you aren't, you now have no access to the benefits of obtaining credit for several years. So, you make your choice and do whatever is best for you. I think it would be best if society wasn't hooked on credit and more people live on cash


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

I've lived on nothing but cash for the past 4 years, not only has it been easy it's been freeing!


ACharb1970 4 years ago

Hi,

I am recently divorced from 15 years of marriage where I let my CFO husband make all of our financial decisions. BIG mistake. About 5-6 years ago my husband informed me of the HUGE amount of debt we had, but that a big deal was around the corner to save us. HOWEVER, he needed me to open a few credit cards to save us from losing everything and "he'd pay me them back as a priority." Guess what?There has been no big deal, no payback...just debt and divorce. I'm a cautionary tale of the naïve wife. Today, I don't own a home or even a car. There are no assets, savings...nothing. I was a stay at home Mom for 15 years and just finally (after looking for a year) found a part time job making $8.50 an hour. I'm glad to have it.

This am I received a summons from the sheriff re: a law firm representing Discover Bank looking for money ($10,000 +). I make about $2500 a month in alimony, child support (for 2 kids) and wages. This just covers rent, bills, student loans, food, etc. I can't pay them an amount monthly that they'd want. Plus there are two other cards I opened at that time that are seriously delinquent. I also seriously doubt that my support from my ex will be timely as he is WAAAY over his head and I just know that a" sorry I can't pay you this month is in the future." Should I declare bankruptcy or go to court because I have no assets and let them try to get blood from a stone? I live in NC and the debt has to be close to 3 years old now. If it is the Discover card then they can validate the debt right? Please advise!


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

Hello "ACharb1970", you need to make sure that your debt is 3 years old or close to it. If it is they cannot do anything to you because it is past the statute of limitations in NC. If I were you I would call a bankruptcy attorney for advice since you are so close or over the 3 year mark and just get their advice on this..call a few attorneys so that you make sure that you are getting the same advice from them all. If it isn't at the 3 year mark and it is Discover Card..they CAN validate the debt and you could be stuck with a judgment on your record which could last 10 years or more...if that is the case I think it would be better to file bankruptcy but call the attorneys and see what they say. It would be a shame if you did that and you are past the statute of limitations.


ACharb1970 4 years ago

Thanks Brie!


Amy 4 years ago

Hi Brie! Great reading! My husband and I made the unfortunate mistake of filing for bankruptcy 2 years ago. :( We filed bankruptcy because my husband (before our marriage) had purchased two condo's that were in default and we didn't want a judgement haunting us as we began our lives together. We filed chapter 13 and have been consistently paying the courts every month with 3 years to go. I have two questions for you. 1) We received a notice from an attorney representing the original condo association for a judgement they filed in October 2008 (we filed bank Nov 2010) and now we're here in Sep 2012. If they didn't file their intent to claim when we filed bankruptcy isn't it too late for them to seek anything? and 2) My husband had a debt with a university that was not a "student loan". It was tied up with the bankruptcy and we pay it off slowly but surely. Well the university refuses to release his transcripts until they're paid in full. But we can't pay them any fast than the court order bankruptcy. Do you think we can push back on this? Any insight would be appreciated.


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

Hi Amy, thanks for reading my article. You will have to discuss this question with a bankruptcy attorney. As far as your second question, I really don't know. But if I were you I would call the University and see if you can work something out. I don't know if they can be flexible or not..it may not be up to them..it may be a creditor issue and they may have no say in the matter.


Sean 3 years ago

I asked for the following:

What the money you say I owe is for;

Explain and show me how you calculated what you say I owe;

Provide me with copies of any papers that show I agreed to pay what you say I owe;

Provide a verification or copy of any judgment if applicable;

Identify the original creditor;

Prove the Statute of Limitations has not expired on this account;

Show me that you are licensed to collect in my state; and

Provide me with your license numbers and Registered Agent.

And the attorney only sent me copies of my credit line balances and records. He failed to provide me with any agreement that I agreed to pay.

I told him I would need 30 days to review his response to my Debt Validation letter.

What should I do now?

Thanks for the great article Brie!


Brie Hoffman profile image

Brie Hoffman 3 years ago from Manhattan Author

Did you ask all of these things in writing? If not, do it again in writing and make sure you send it certified..keep copies and receipts of everything. That way if they even try to take you to court you have proof and it should be dismissed..but I doubt that they will even try. They will, however, probably keep harassing you but you can just ignore that. Just don't answer the phone unless you know who it is.


Sean 3 years ago

Yes, all in writing and sent certified. The lawyer that received my letter with all those questions only replied back with statements and failed to acknowledge or verify anything else.


Sean 3 years ago

Summary account "statements" that is. Sorry


Brie Hoffman profile image

Brie Hoffman 3 years ago from Manhattan Author

Sounds good to me, it's what I would have done.

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