I requested a debt validation letter to Coast Professional and what they sent was a computer generated letter...?

Question

I requested a debt validation letter to Coast Professional and what they sent was a computer generated letter that states principal balance, interest & fees. Any idea if that's considered a debt validation? If so, should i let them know that I'm retired and receive a small amount monthly so that they will lower the amount due substantially? Any help is great.

Answer 1

Hi,



Simply put, it's a toss up. The legal standard for debt validation is not defined very well, and the leading case law on the matter basically says "debt verification is nothing more than the debt collector confirming in writing that the amount due is correct." There is other case law though that contradicts that ruling, and some that have even said that the verification must be generated by the original creditor (like a copy of a bill).



One thing is for certain, you can write the collector back and say that what they sent did not satisfy you that there was a balance owing, and specifically request a copy of a final bill. They are under no obligation to give it to you, but if they can get it and think it will help make you pay then they may just do it. At minimum they would have to report it in your credit file as disputed if you tell them you continue to dispute.



Obviously I don't know anything about the alleged debt, but there is one good thing: in virtually no situation will that letter that says "yep, we verified it, it's right, pay up" prove anything in court if they intend on suing you - as long as you show up to defend (assuming of course they actually sue you). One would think that if they don't have anything more concrete than that to send you when you request validation, then they likely can't prove it in court either.



I wouldn't mention your financial situation, it won't do too much I'm afraid. If you want to pay it though, you could always write them back saying that you aren't satisfied with their verification as it doesn't prove anything to you, but in a good faith effort to settle the matter you'll offer them $xyz. I did this once and offered 20% of what they claim was owed.



They'll either accept it, counter it, or reject it. Just make sure that they know you will only pay if they agree to consider the matter Paid in Full afterwords, and get it in writing before you pay them. If they reported it to your credit report, you could negotiate a possible deletion of that as well. Just some options to throw out there.



Final note: Depending on the type of debt, the amount, and when the debt went bad, it could be time-barred and they may not even be able to sue you for it. Try doing some research on that if it's beneficial!



Good luck!

Answer 2

No, anything generated from the collection agency's own computer system does not legally qualify as debt validation. It has to come from the original creditor to be valid. If the debt has been sold more than once, proof of each subsequent owner must also be verified.



As for your income, or lack thereof, that is all irrelevant. Collection agencies deal with matters of law, not your emotions.



Never, never, never, reveal too much personal information to an collection agent. He is trained to use what you tell him against you.



Good luck

Answer 3

Well, what did you ask them to send?

Usually, with a debt validation letter, you are asking them to prove you owe the debt they are claiming, including:

 Proof that you are legally obligated to pay the alleged debt

 A current statement from the original creditor indicating that the debt is valid

 A detailed explanation of how the collector/creditor allegedly came to possess ownership this debt, including all chain of custody and supporting documentation

 Proof that the collector authorized to collect this debt

 A detailed and itemized explanation as to how the alleged “amount owed” was calculated, along with all supporting documentation, including records of payments made by you to any previous creditors, and to include proof that you agreed to this method of calculation

 Proof that the company, as well as the debt collectors that have contacted you, are licensed in your state; include all license numbers

 Proof that you have not already resolved this matter with a previous creditor

 Proof that the Statute of Limitations has not expired on this account



All they sent you was an amount. That validates nothing. I would write them back and tell them that they failed to validate the debt.

Answer 4

How to lower that amount that you owe:

Do you have a lump sum savings anywhere?

Make them a lump sum offer. They will not give you discounts if you go on a payment plan (which is a horrible idea anyway).



Legally, they sent you what they needed to send you

And they do not care one little bit about your financial situation. Not sure how to say that nicely.