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How to confirm if you have a legitmate debt when debt collectors are sending letters?

How to check to see if the debt is really legit? I know there's a statute of limitations of 7 years that prevents debt collectors from contacting you but what happens to the debt after that time frame? Also, if you get a letter from a debt collection agency stating you owe a debt, how to prove that the debt is real and you do in fact owe?

Public Comments

1. you ask them for the name of the company that wants money and you contact that company yourself.
2. Run your credit report. Go to annualcreditreport.com, and request one from each of the three main bureaus: Equifax, Experian, and TransUnion. Then, dispute any charges that shouldn't be on there. Disputes can take up to 45 days. Best of luck to you! *** One more thing-- Do NOT contact the companies directly until after you run your credit report. You can negate that statute of limitations. Dispute the charges if they shouldn't be on your credit report. If the charges are valid, then call the companies directly. But, if it is a chargoff, these companies may not be willing to work with you. The debt collectors purchased your debt from them, and that is why they are so desperate to collect.
3. Send a letter to the collection agency, certified mail, return receipt requested, asking for validation of the debt. Keep a copy for your records and also the green card the USPS will return to you showing the letter has been received. If the debt collection agency cannot verify the debt (give them 30 days), send them a letter stating that per the FDCPA (Fair Debt Collection Practices Act), the debt is invalid and to cease collection efforts. Send copies of your correspondence to the credit bureau along with a dispute of debt letter. Do all of this via certified mail, return receipt requested and send copies. Lots of detailed info here: http://www.creditinfocenter.com/rebuild/debt_validation.shtml Do not click on any of the ads on the linked page or fill out the "more info" form. Everything you need to know is already there. Sample credit bureau dispute letter here: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre21.shtm You can pull your credit reports free at https://annualcreditreport.com (free reports every 12 months...more often than that and you will have to pay). Make sure you get the report that contains copies from all three bureaus. ---------------------- Mo is right in that sometimes these debts turn into "zombie debt" (Google it) but by federal law, these zombie debts must be removed from your credit report if the statute of limitations for collection has passed. If you don't pay, it will be up to you to monitor your credit report and file disputes every time the debt shows up based on that. This occurs even when people have had debts discharged in bankruptcy. Even settling a debt for less than the original amount owed can lead to zombie debt occurring on the difference between the charge off and the settled amount. And zombie debt can arise from something that appears on your credit report through no fault of your own ...fraud, identity theft, etc. (read more here: http://articles.moneycentral.msn.com/SavingandDebt/ManageDebt/ZombieDebtCollectorsDigUpYourOldMistakes.aspx ). Practices like that are absolutely and positively against the law, but it's up to you to monitor your credit reports and dispute every time it is reported.
4. PooPooLa is right. Send the DV letter exactly as mentioned including postal info. The only thing I'll add to this is...do NOT sign the letter. Type only & do not provide any information to them about alleged debt. The proof rests on their shoulders. One more thing...the SoL has nothing to do with the 7 year reporting time frame. SoL is different in every state, and it is the time frame that the debt owner has to sue you for payment in court. Once SoL has passed, they can still report up to the 7 - 7.5 year period & they can attempt to collect forever. The debt itself never goes away. (unless you pay or settle.)
5. Derogatory items age off your credit report 7-1/2 years from the date of first deficiency. This is per the FCRA and nothing restarts this period. The Statute of Limitations (SOL), the timeframe to bring lawsuit, varies from state to state. Typically it starts from the date of last activity or last payment. Making a payment can restart the SOL. People often confuse and merge these two completely separate items. Even if the debt is beyond the reporting period and the SOL, this does not mean you don't still owe the debt. It just means that the collector can't report the debt and that if sued, you can use the SOL as an affirmative defense to the debt. Collectors can still contact you to try and collect. If you do not know if the debt is yours, send the collector a certified, return receipt letter requesting validation of the debt to include copies of contracts or other documentation that prove the debt is yours.
6. They have to send you proof of the debt. If you believe this is not a valid debt send certified letter with return receipt stating it is not a valid debt & not to contact your again. Keep copies forever. Check out the info about debt collector on the following web site, www.clarkhoward.com Clark Howard is a syndicated talk show host about managing your money, saving more & spending less. He has sample of a drop dead letter you can send. Also check out www.nfcc.org , the National Consumer Credit Counseling organization. Good Luck