Collection letters: make them prove it

Debt collection defense starts with one question: can the collector prove its claim? A collection letter alone does not answer it.

Many charged-off accounts are sold to debt buyers. So the company that contacts you may not be the lender you dealt with. Federal law gives you a 30-day window to dispute a debt in writing, and the collector must then stop collecting until it sends verification.

If a debt buyer sues, it generally has to prove that the debt exists and that it owns the claim. That proof usually comes from a chain of title: the original agreement, each bill of sale or assignment, and the account-level records that tie your account to each sale.

Finally, deadlines matter on both sides. Respond to any lawsuit on time, and check your state’s statute of limitations. For an active case, talk to a licensed attorney.

Each guide explains one part of the process in plain language. First comes how debt buying works. Next come the validation and credit reporting rights in federal law. Then come the documents that prove ownership and the steps in a lawsuit.

Every guide cites the statute, regulation or rule it relies on and links to the official text. However, state law also applies, so check your own state’s rules as well. For example, the time limit to sue on a debt is set by each state. Similarly, many states add their own collection rules on top of the federal law.