The Fair Credit Reporting Act is a revision of the old act that was established to protect consumers from any form of violation of rights by the reporting agencies and information furnishers in their process of compiling information for people’s files.

The FCRA, revised in 2003, grants you the right to ward-off collectors when they bombard you with letters, phone calls and all sorts of contact messages in the name of getting you to pay a debt. An instance where you can benefit from the powers of the FCRA is to send validation letters to collection agencies telling them to produce evidence that the rightful creditor has sold the debt to them, which gives the collector authority to request payment from you.

Meanwhile, for the period beginning from when the collector receives your validation letter, the collector has absolutely no right to contact you until they produce evidence of having authorization to request repayment from you. If they are not able to produce any such evidence upon expiration of the 30 days deadline they have from the day of receiving the letter, the FCRA requires them to remove the collection account from your credit report.

It doesn’t end there. The FCRA empowers you to demand that any collector who tries to get you to part with your money to produce evidence that they are authorized to operate in your state. If the collection agency is not able to produce their operational license that allows them to collect debts in your state, then they may be violating the law.

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