Settlement and Validation Request

Your Name
123 Your Street Address
Your City, ST 01234

ABC Collections
123 NotOnYourLife Ave
Chicago, IL



To Whom It May Concern:

I am continually being called on the telephone by your firm over an alleged $9000 debt.
I’m sure you are aware of the provisions in the Fair Debt Collection Practices Act (FDCPA), and I am requesting validation of this debt. I am requesting proof that I am indeed the party you are asking to pay this debt, and there is some contractual obligation which is binding on me to pay this debt. I request that you stop contacting us on the telephone and restrict your contact with us to writing, and only when you can provide adequate validation of this alleged debt. To refresh your memory on what constitutes legal validation, I am giving a list of the required documentation:

• Complete payment history, the requirement of which has been established via SPEARS vs. BRENNAN and
• Agreement that bears the signature of the alleged debtor wherein he agreed to pay the original creditor.
• Letter of sale or assignment from the original creditor to your company. (Agreement with your client that grants you the authority to collect on this alleged debt.)
• Intimate knowledge of the creation of the debt by you, the collection agency

I’m sure you know, under FDCPA Section 809 (b), you are not allowed to pursue collection activity until the debt is validated. You should be made aware that in TWYLA BOATLEY, Plaintiff, vs. DIEM CORPORATION, No. CIV 03-0762 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF ARIZONA, 2004, the courts ruled that reporting a collection account indeed is considered collection activity.

I’m sure your legal staff will agree that non-compliance with this request could put your company in serious legal trouble with the FTC and other state or federal agencies. Under the FCRA and the FDCPA, each violation is subject to a $1000 fine, payable to me.

Of course, no one likes to go to court. My time is money and it would be worth it to me to settle this outside of court, even if I am assured of victory. To minimize both parties’ time and trouble over this matter, I am willing to offer a settlement of $XXXX.XX amount which is also included in the attached settlement offer. The offer is not an admission of indebtedness, but an attempt to bring swift closure to this matter.

Your Name

, referred to as COLLECTION AGENCY and, referred to as CONSUMER, agree to resolved the matter of the alleged debt, originally held by the ______________________ Company hereafter referred to as the CLIENT. COLLECTION AGENCY, hereby agrees to settle this alleged debt claimed by COLLECTION AGENCY on the following terms and conditions:

The COLLECTION AGENCY certifies that it is legally authorized to act in behalf of its CLIENT and that any agreement that the COLLECTION AGENCY makes on behalf of Client is legally binding on the Client.

The COLLECTION AGENCY and the CONSUMER agree that the present debt due is $38,0000.00 (one thousand thirty-eight thousand & 00/100 dollars). The parties agree that the COLLECTION AGENCY shall accept the sum of $9500 (nine thousand five hundred dollars & no/100 dollars) as full payment on the debt. The acceptance of the payment will serve as a complete discharge of all monies due, and the COLLECTION AGENCY agrees to consider the debt paid in full and agrees to not take further action to collect on the alleged debt. The payment shall be made in the form of a cashier’s check.

Upon payment of the $9500, the COLLECTION AGENCY agrees to remove any listing or information that the COLLECTION AGENCY may have placed on the CONSUMER’S credit report. The COLLECTION AGENCY agrees to never at any time in the future place any information on the CONSUMERS credit report.

The CONSUMER feels that the negative information on CONSUMER’s credit report is damaging and while the exact estimation of the damage is not currently known, the CONSUMER estimates it to be $10,000. Should the COLLECTION AGENCY fail to remove the listing or reinsert it at a later date, the COLLECTION AGENCY agrees to award liquidated damages of $10,000 to CONSUMER.

This compromise is expressly conditioned upon the payment being received by. If the CONSUMER fails to pay the compromised amount by, the original amount owed by the CONSUMER will be reinstated in full, and immediately due.

The person signing this agreement, referred to as LEGAL REPRESENTATIVE OF COLLECTION AGENCY __________________________________, hereby declares that he/she is authorized to act as an agent of the COLLECTION AGENCY.

This Agreement shall be binding upon and inure to the benefit of the parties, their successors, and assignees.






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