Ravi’s Gadgets

The correct way to respond to a collection letter is with a written request for debt validation. This is your right under the Fair Debt Collection Practices Act (FDCPA), and if done in a timely and correct manner can produce fantastic results. Let’s start with the law: FDCPA § 809. Validation of debts [15 USC 1692g (b) “If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.”

Timing is Everything

Please note that there is only a 30 day window of opportunity to request your debt validation. Collectors must abide by the laws spelled out in the FDCPA, but these laws only mandate a response for the 30 days following the date of the initial collection letter. Beyond the 30 day window collectors have no obligation to provide the documents that you request and you have lost the opportunity to force compliance. Don’t procrastinate. Your credit is too important.

Why Validate the Debt?

Why request validation of a debt? There are two good reasons that you should request debt validation on every collection letter you receive, even if it looks legitimate. First, how do you know that the collector has the legal right to collect? You don’t! Debt is regularly sold, and just as often re-sold. You may have incurred an obligation with the original creditor, but you don’t know anything about the party that is currently demanding payment. So exercise your rights and ask them to prove that they own the debt. Secondly, how do you know that the amount of the debt is correct? Is the interest calculated properly? Are there other fees added? You deserve to know. As with any other credit repair services, it’s about exercising your rights!

The Debt Validation Letter

Let’s get to work. Write a letter to the collector. Make it neat. Reference the debt using the identification they provided in the collection letter, such as collector account number, creditor account number, creditor name, etc. Clearly state that you dispute the collection and that according to the FDCPA you demand that the collector provide proof that they own the debt and have the right to collect, as well as proof of the amount owed by providing a copy of your signed credit agreement with the original creditor and a complete accounting of amount in question. Attach a copy of the collection letter, and send it certified mail. If you are not comfortable doing this yourself contact a reputable credit repair company. Most legitimate credit repair businesses offer debt validation as part of their arsenal and will be happy to do this for you.

The Response

What happens next? Once you have sent a debt validation letter to a collector they must satisfy your request with adequate documentation. Ownership of debt may be proven with a contract or purchase agreement transferring the debt to them. The amount owed may be documented with account statements from the original creditor, or a copy of the original signed loan agreement and an accounting of the total. It is never sufficient for the collector to provide their own internal itemization of the debt. In all cases, the documentation should be clear and provide definitive proof of the collectors claim.

Say Goodbye to the Collector

What happens if the collector cannot (or does not wish to) provide the documentation that you request? If they can’t comply …they can’t collect, they can’t contact you, and they can’t report the collection to the credit bureaus. It’s that simple. And it is likely that you will never hear from them again.

An Important Note

Our credit repair clients occasionally express concern that if the collector is pushed too hard they will send a summons and attempt to get a judgment. It is not legal for a collector to take any additional steps to collect, including getting a judgment, until they have satisfied their obligation under the FDCPA. If you receive a summons after challenging a collector with a debt validation letter you will need to appear in court with proof that you requested validation. Going to court is not an attractive option, but if you kept proper records and appear with your certified mail receipt you will prevail.

Getting Started

If you have lost your wallet you should take defensive action as soon as possible. Make a list of everything that was in your wallet; credit and debit cards, identification, insurance cards, movie rental cards, etc. The first order of business should be to contact all credit and debit card issuers, and inform them of your loss. They will deactivate your cards and discuss your options. Most credit card companies will provide a new card immediately to minimize your inconvenience. Once you have contacted everyone it’s time to consider additional precautions. If you need help, most credit repair professionals will be familiar with your choices and should be happy to provide guidance.

Fraud Alert

A fraud alert is a message on your credit report notifying potential creditors that your personal information may be used fraudulently, and requests them to contact you by phone prior to extending new credit. An initial fraud alert will remain in place for 90 days, and can be cancelled anytime. You may place a fraud alert on all three reports by calling just one of the three bureaus as they are required to contact the other two. You may also initiate your fraud alert online at the bureaus websites. Once the 90 day period is past, you may place an extended fraud alert on your report which will last for seven years, if you feel that your identity is still at risk.

Credit Freeze

A credit freeze is a more dramatic step you can take to insure that no new accounts are opened in your name. Once a credit freeze is active potential creditors will not be able to access your report. There are exceptions which allow a variety of pre-authorized parties to view your reports. This includes your current creditors who have the right to review your credit, collectors that work for current and past creditors, and companies that offer pre-screened credit. You may lift a credit freeze if you wish to apply for new credit. Unlike fraud alerts, which are available to anyone, credit freeze laws vary from state to state and may not be available in your state. In many cases there are fees associated with placing and lifting a credit freeze. Again, if you are uncertain, ask a credit repair professional for assistance.

Free Credit Report

Once you have placed initiated a fraud alert or credit freeze you may access each of your credit reports one time for free. In the case of an extended seven year fraud alert you may access your reports two times for free within the first year of placing the alert. Keep in mind that everyone has the right to access their reports one time per year for free at annualcreditreport.com. This is a federal law intended to facilitate the identification and repair of credit reporting errors. Instances related to the implementation of a fraud alert or credit freeze do not count against your right to your free annual reports.

Credit Monitoring

Credit monitoring is a fantastic high-tech tool which can add an extra layer of protection and comfort for anyone whose identity may have been compromised. It is also nice for anyone in a credit repair program wishing to track changes in their reports. Credit monitoring is offered by all three credit bureaus for a small monthly fee. At the time of this writing the cost is under fifteen dollars per month. Once enrolled, you will receive an email whenever there is a credit inquiry or any material change in your credit reports. You will also get unlimited access to your reports. Each bureau has an option that provides you with monitoring from all three bureaus simultaneously.

Social Security Card Replacement

If you have lost your Social Security Card you can get a replacement at no cost. You may get up to three replacement cards per year and up to ten in your lifetime. Just go to your local Social Security Administration office with personal identification and proof of citizenship, such as your birth certificate, certificate of naturalization, or passport, and you will receive a new card in approximately two weeks. You will also get a Social Security Number Certification letter on the spot which can be used in place of a card while you wait.

The Social Security Administration does not get involved in resolving identity theft issues, but if you inform the Social Security Administration that your Social Security number may have been used by another person, they will review your earnings to make sure no one else is using your identification for work purposes.

Deal of the Day websites have become all the rage lately, as Internet shoppers have flocked to these discount-oriented sites in the hope of finding lower-than-low prices on everything from computer accessories and home electronics to apparel and DVDs. But with the new found success of these sites has come rumor and conjecture about what, specifically, they have to offer.

The following separates myth from fact, while clear up some of the biggest misconceptions about deal of the day shopping.

Myths and Facts about Deal of the Day Shopping

Myth: The products on Daily Deal sites are lower quality

Fact: Everything you find on Deal-of-the-Day discount websites are the same quality of those items you would buy in a store. The reason that the products carry a low price tag is most commonly because they are overstocked items that the distributor or manufacturer, not because they are defective or second-hand.

Myth: Refurbished items tend to be defective

Fact: Many of the great prices on daily deals websites come on refurbished items. Refurbished products are those which contain different parts that those included by the original manufacturer. In the case of home electronics or computer accessories, these products are spot-checked for quality and may even come with a manufacturer’s warranty. They are therefore no more likely to be defective that any other product purchased in a brick-and-mortar store.

Myth: There are “hidden charges” when you order from Deal of the Day website

Fact: The beauty of most deal of the day websites is that what you see is what you get. You may have to tack on a few bucks for shipping when applicable, but usually the cost of the products you buy are SO low that it still represents a significant savings.

Myth: Only a few select people actually get the products at the price they are advertised

Fact: Although the supply is limited on deal of the day websites, the products offered always stay at their initial price. Deal of the day vendors are not interested in pulling the old “bait and switch” on the their customers because they are too busy readying the next great set of discounts to post online.

Myth: You can’t get anything of value on discount websites

Fact: Just ask anyone who has upgrade their computer for a few dollars, or found the perfect holiday gift at an incredible price, and they will tell you that deal of the day websites are the “real deal.” They offer great prices on a wide variety of useful items that one might shop for anyway, and NOT trinkets and impulse purchases (that wouldn’t be much of a savings if you never used them to begin with).

The bottom line: get educated about deal of the day websites by checking in and browsing through the latest deals. Chances are, you’ll get hooked on the discount prices and fine merchandise offered there.

Why are there so many websites offering online daily deals now and managing all these sites online can be a handful. Knowing which site offering your category of interest and alleviate the pain of going through all these daily deal sites to find what you want. So what is the deal of the day anyway? Often times when an item goes online as a daily deal, their prices are often discounted to get rid of inventory and make empty space for new shipment.

Online Deals – The Thrill of the Hunt

The thrill of having some get sold out and go on sale for possibly only one day brings this kind of shopping frenzy that is similar to Black Friday. Shoppers want to get their hands on the best online daily deals before they sell out.

Daily Deals in Many Categories

Knowing what sites are out there can help you filter out which sites you want to follow. If you’re looking to find online electronics daily deals, then you would’nt want to waste your time on a clothing site. Also, I highly suggest you bookmark your favorite online deal sites, follow their rss feed, and join their email deal updates. Also, do a little price research online hand see how much shipping will cost you because sometimes you might be able to find it cheaper elsewhere. Most of these sites offer one deal per day until it sells out, so it’s important to find out when each new deal rotates in your search for the best online daily deals.

Check out Cowboom today and check out their store, auction, and daily deals online items