Usually, debt validation letters are a waste of your time.
The original creditor rarely brings these suits.
The original creditor has most likely charged the debt off and taken their tax write off.
A scavenger debt collector buys the worthless paper (the note or credit agreement).
The scavenger now owns a worthless receivable, that has been charged off.
The bottom feeder, debt scavenger, buys the debt at less than 10 cents on the dollar in today's economy.
They begin harassing innocent folks like yourself.
If the debt was for $1000, anything over $100, is all profit for them!
The creditor, mind you, has gotten a nice tax write off for the FULL value of the debt, plus what the scavenger paid them.
This practice should be outlawed.
What should you do?
Some peole settle with these scavengers.
Others ignore them, because the longer you have no contact with them, the statute of limitations begins tolling.
You should only respond to legal documents, ie...subpoeanas or summonses.
That is so you avoid them getting a defat judgment on you.
If you are worried about your credit rating, that is useless.
Your credit score has already Benny hit because you defaulted on paying the debt.
Paying the scavenger won't improve it, either.
Only time will cure what damage has been done.
The only other thing that could hurt your FICO is a lawsuit, that you lose.
That is why you respond to legal process.
If you are sued, demand they produce all documents related to the alleged debt.
They can't, because the creditor they bought the paper from didn't sell them that.
I've beaten many of these cases on this basis for my clients.
You can, too.
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