What should you include in a debt collection letter?


Quick Answer

A debt collection letter should include the amount of the debt, the debtor, how the individual can dispute the debt and how he can verify the debt, according to the Consumer Financial Protection Bureau. All of the information has to be received within five days of initial contact.

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Full Answer

An individual can dispute a debt in writing within 30 days of receiving all necessary information concerning his debt, states the Consumer Financial Protection Bureau. Until the dispute has been investigated and the debt collector has verified the debt in writing, the collector cannot legally communicate with the debtor.

A debt collector is required to adhere to the Fair Debt Collection Practices Act in his efforts to collect a debt, notes the Consumer Financial Protection Bureau. The act limits how and when a collector can contact a debtor. The act includes personal debt but not business debts. The act doesn't include collection from the original creditor, which is the individual from whom the debtor originally borrowed the money.

In addition to sending a collection letter, a debt collector can pursue a lawsuit or report the debt to a credit reporting company, states the Consumer Financial Protection Bureau. When reporting the debt, the collector has to adhere to the federal Fair Credit Reporting Act.

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