When the first collection agency can't collect they sell the debt to 2nd tier collectors. They sometimes sell it to 3rd tier collectors. My experience in helping resolve collection disputes is sometimes the first collector and always the third collectors do not provide debt validation letters.
Once companies have sold the debt to a collection agency they do not help resolve it in any way and the collection agency is only interested in getting money not whether the debt is real or there were some mitigating circumstances.
I was not the one with debt. I was a mediator trying to help. The people with this situation sometimes ignore the first notice to them and don't ask for a validation letter. Others, I believe, do not read it carefully and see they have a small window of time to dispute the claim.
I think the original notice letter to the debtor should HIGHLIGHT the part about a validation letter. I also, think the original creditor should be required to help resolve disputes instead of debtors or third parties like me only being able to talk with the collection agency.
Probably 50% of the agencies I have dealt with do not follow existing regulations.
Without penalties they never will.
The few that are reasonable and follow the rules are a pleasure to deal with, as a third party.
Mike Smith
1
When the first collection agency can't collect they sell the debt to 2nd tier collectors. They sometimes sell it to 3rd tier collectors. My experience in helping resolve collection disputes is sometimes the first collector and always the third collectors do not provide debt validation letters.
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Mike Smith
2
Once companies have sold the debt to a collection agency they do not help resolve it in any way and the collection agency is only interested in getting money not whether the debt is real or there were some mitigating circumstances.
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Mike Smith
3
Sometimes the collection agencies will add extra fees to the debt which places an unfair burden then person with the debt.
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Mike Smith
4
The collection agencies in my experience helping resolve debt disputes will often NOT notify the credit agencies that the debt was resolved.
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Mike Smith
5
I was not the one with debt. I was a mediator trying to help. The people with this situation sometimes ignore the first notice to them and don't ask for a validation letter. Others, I believe, do not read it carefully and see they have a small window of time to dispute the claim. I think the original notice letter to the debtor should HIGHLIGHT the part about a validation letter. I also, think the original creditor should be required to help resolve disputes instead of debtors or third parties like me only being able to talk with the collection agency. Probably 50% of the agencies I have dealt with do not follow existing regulations. Without penalties they never will. The few that are reasonable and follow the rules are a pleasure to deal with, as a third party.
View this comment in the discussion thread