Debt Collection Letters

If you fall behind on a debt payment, you can expect your creditor to send you letters and make phone calls to try to recover your past-due amounts. If your debt becomes severely delinquent--usually six months or more--the creditor may also sue you, which gives the creditor the right to pursue garnishment of your bank balances and liquidation of personal property. You may wonder if a creditor can go after your spouse as well. In Pennsylvania, a creditor typically cannot pursue your spouse.

Requesting a proof of debt letter from a collection agency helps validate the fact that you owe money. Collection agencies may purchase an old debt from lenders and creditors and attempt to collect these past due funds. But oftentimes, collection agencies can't provide proof that a consumer owes the money. Requesting a validation letter requires action from agencies, and if they can't supply this letter, they must stop contacting you.

Debt Collection Letter Requirements for California

The state of California regulates what may be included in a debt collection letter. The Rosenthal Fair Debt Collection Practices Act regulates all debt collection practices, including collection letters. The act allows creditors reasonable means to collect a debt, but requires those means to be fair, honest and responsible.

Debt Payment Reduction Letters

Whether trying to reduce mortgage payments or credit card debt, there are some basic things to keep in mind while writing a letter. Debt payment reduction letters should convey an acceptance of the debt, an actionable proposal on the part of the letter writer and then a follow through to reflect the commitment.

There are many reasons why debt-collection letters are necessary. They remind the debtor of his obligations and provide proof of communication to the court should litigation become a necessity. In addition, federal law insists that a standard letter be used to initiate communication. Because of that legal significance, there are guidelines you should follow when preparing a debt memo letter.

Debt collectors must adhere to the Fair Debt Collection Practices Act (FDCPA) which ensures fair treatment and approved debt collection practices. Under this act, the debt collector must stop calling or writing if you send the company a letter requesting an end to these practices. With the exception of contacting you to warn you about any legal action taken against you, debt collectors must stop contacting you upon receipt of this letter. Writing the letter is straightforward and only takes a few minutes.