Most people aren't aware of debt collection tactics that are available to debtors. These strategies allow debtors not to be legally responsible to pay back their unsecured debt.

One of the debt collection tactics refers to a federal law known as the Statute of Limitations (SOL). This statute prevents debt collectors from collecting "zombie debt". This is old debt that is no longer collectable.

By law, debt collectors have a limited amount of time to collect an unpaid debt. The time frame varies from state to state (between 3-10 years. Most states allow 4-5 years to collect). This is the most simple of the debt collection tactics.

The purpose of this law is to protect debtors. The federal government deemed it unfair that a debtor be hounded forever by debt collectors! If debt collectors can't or won't collect within the allotted time, then you are no longer responsible to pay back that debt.

If the Statute of Limitations has expired and the debt collectors sue you, the judge will throw out the case if you provide proof that the SOL has expired.

How do you determine the starting date for the Statute of Limitations? Look at the date of your last payment. This information is contained in your credit report. You can get a free copy of your report by visiting annualcreditreport.com this website will not ask you for your credit card info.

The second of the debt collection tactics that you have at your disposal is called Debt Validation. This is another federal law that falls under the Fair Debt Collection Practices Act (FDCPA).

This refers to a consumer's right to challenge a debt and receive written verification of the debt from a debt collector. The debt collector must prove that the debt they are attempting to collect is indeed yours. The right to dispute the debt and receive validation is part of the consumer's rights under the United States Fair Debt Collection Practices Act (FDCPA).

If a consumer makes a timely request for debt validation and a debt collector fails to provide proper validation, or does not respond at all, the debt collector may not legally continue to pursue the debt, and therefore, you are not legally responsible to pay the debt! If the collection activity continues, the consumer may file a lawsuit in state or federal court for violation of the FDCPA.

What does a debt collector have to provide to validate a debt?

Proof that the collection company owns the debt/or has been assigned the debt.

Proof that the collection company is legally allowed to collect debts in your state.

A complete tally of the debt, all fees and interest.

A copy of the original signed loan agreement or credit card application (with your signature).

So, if a creditor can't verify a debt:

They are not allowed to collect the debt,

They are not allowed to contact you about the debt.

They are also not allowed to report it under the Fair Credit Reporting Act (FCRA).

Doing so is a violation of the FCRA, and the FCRA states that you can sue for $1,000 in damages for any violation of the Act.

Some debt collectors are too lazy to provide you with the required documentation. Or, they lost a portion of the paperwork and therefore cannot send it to you. So, take advantage of these two debt collection tactics. They are your rights. You may be able to save $1,000's!

I’m the CEO of Debt Free Solutions, a debt consulting firm located in Long Beach, CA. I have established business in October, 2000. I’m dedicated to assisting Americans nationwide to eliminate excessive credit card and other unsecured debt.