Debt Defense 101

The 3 Must Send Letters

The following are the 3 "Must Send" Debt Defense letters. This means that at all times you must send any of these letters to any debt collection company or the original lender that contacts you.

The 3 "Must Send" Debt Defense letters are:

1. The Debt Validation Letter is designed to get a lender or debt collection agency to provide proof that it can collect the debt. If a lender or debt collection agency cannot provide proof that it can collect the debt, then it may be prevented from collecting all of the debt.

2. The RESPA Request Letter is designed to get three (3) main pieces of information. 1. A copy of your original mortgage loan file. 2. An accounting of all of your mortgage payments and the charges made on your mortgage loan account and 3. Proof that the lender has the original note and other documents that allows it to foreclosure and to collect the mortgage debt. You can go to this HUD link to learn more about the RESPA Request letter.

3. The Cease and Desist Phone Call Collections Letter is designed to stop the harassing phone calls and improper communications. This letter must be sent several times and must be sent to the corporate offices and the designated offices.

The full text of the sample letters are below, so scroll down. The sample letters are designed for "cut and paste". Please read each letter carefully. You must make sure to put in your address and account information. You may need to add or take out certain information. You must send each original letter by certified mail (no return receipt is necessary), regular mail, and if possible fax. Don't forget to make a copy of your letter for your records. Make sure to staple the original mailing receipt and fax confirmation to the copy of the letter and put it in your file. 

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DEBT VALIDATION LETTER - SAMPLE

Bob and Angela Friendend
123 Street Avenue
New City, CA 01234

August 7, 2010

VIA CERTIFIED MAIL, REGULAR MAIL & FACSIMILE
RKL Collections Agency
1234 Notrust Ave
New York, NY 10000

Re: DEMAND TO VALIDATE DEBT UNDER FEDERAL & STATE LAW
Acct # XXXX-XXXX-XXXX-XXXX

To Whom It May Concern:

I am sending this letter in response to a written notice dated August 7, 2010. The notice sent by your offices claimed that I owe a certain debt to you or to a company you are affiliated with.

Please be advised that this is a debt validation letter. At this time, I am not disputing the validity of the debt. I am simply requesting proof of the debt. However, I reserve the right to dispute the debt after I receive a full and complete written response to this request to validate the debt.

You are aware of the Fair Debt Collection Practices Act, in addition to my home state laws regarding debt collection practices. Under such laws, I am asserting my right to receive the following information to my requests. Be advised that when I refer to “your company”, I am referring to the company that sent the notice claiming I owe a debt.
1. Who or what is the current legal owner of the debt? If your company is the owner then provide proof of the proper transfer of the debt to your company.
2. Does your company have the original paperwork that established and created the debt obligation?
3. Who or what is the name and address of the original lender of the debt? What is the date of the origination of the debt?
4. Provide a copy of all written agreements that establish the debt. Provide a copy of all written agreements allegedly signed by me as it relates to the debt.
5. Provide a complete list of all owners of the debt, including the date of transfers or assignments of the debt.
6. Provide a written statement in which you declare that the applicable statute of limitations has not run on this debt thereby establishing you are legally entitled to collect the debt.
7. Provide an accounting of all payments made against the debt and an accounting of all fees, charges, costs, legal fees, penalties, and interest charged because of the debt.
8. Provide a verification or copy of all legal papers filed against me in an effort to collect the debt, including any judgment that has been obtained against me as it relates to the debt.
9. Provide proof that you have filed all necessary paperwork with the appropriate agencies that allow you to collect debt from me in my home state or my home city. Include your registration and/or license numbers.
10. Provide each and every time your company has filed a report with any of the credit bureau as it relates to my credit report. Provide the exact content of each report filed with any of the credit bureaus as it relates to my credit report.

All collection activity must cease and desist until you have provided me with all of the requested information contained in this letter and until I have had 60 days to review the requested information. Furthermore, you shall cease and desist making any contact by telephone, email, text, facsimile, or internet phone to my home, to my place of employment, to any of my relatives, to any of my friends, and to any of my co-workers. In fact, you must cease and desist making any and all above mentioned contact to any person or entity. You may only contact me, in writing, by regular mail to the address on this letter.


Sincerely,

Bob and Angela Friendend

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RESPA REQUEST LETTER- SAMPLE

Andy and Janet Ryal
32 Good Street
Gedford, NY 11111

August 7, 2010

VIA CERTIFIED MAIL, REGULAR MAIL & FACSIMILE
Undermac Federal Bank
8841 NoWay Street
Pasadena, CA 90000

Attn: Mortgage Loan Accounting Department
Re: Loan # RESPA QUALIFIED WRITTEN REQUEST

Dear Sir or Madam:

You are the servicer or originator or assignee of our mortgage loan at the above address. We question your ability to collect the debt. We also dispute the amount that is owed according to the monthly billing statement and request that you send us information about the fees, costs and escrow accounting on our loan. We also question your work out procedures as it pertains to loan modifications, deeds-in-lieu, and short sales. This is a “qualified written request’’ pursuant to the Real Estate Settlement and Procedures Act (12 U.S.C. Sec. 2605(e)).
Specifically, we are requesting an itemization of the following:
• a complete payment history, including but not limited to the dates and amounts of all the payments we have made on the loan to date;
• a breakdown of the amount of claimed arrears or delinquencies;
• an explanation of how the amount due on the Monthly Billing Statement
• The payment dates, purpose of payment and recipient of any and all foreclosure fees and costs that have been charged to our account;
• the payment dates, purpose of payment and recipient of all escrow items charged to our account since you took over the servicing;
• a breakdown of the current escrow charge showing how it is calculated and the reasons for any increase within the last 24r months; and
• a copy of any annual escrow statements and notices of a shortage, deficiency or surplus, sent to us within the last three years.
• A copy of the entire loan origination file, including all disclosures, good faith estimates, 1003’s, and other documents provided to me prior to the closing of the loan.
• Any and all proof that you are the current holder of the original note, loan file, and mortgage.
• All assignments, transfers, allonge, or other documents evidencing a transfer, sale or assignment of this mortgage, deed of trust, monetary instrument or other document that secures payment by me to this obligation in this account from the inception of this account to the present date including any such assignment on MERS.
• A detailed history as it pertains to my application for a loan workout. This includes a copy of all letters, phone logs, representatives’ names, and a list of all documents sent by me and received by your company.

Sincerely,

Andy and Janet Ryal

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CEASE AND DESIST LETTER - SAMPLE

Lance and Mable Greatlin
332 Fresh Start Road
Goodlawn, Arizona 13333

August 7, 2010

VIA CERTIFIED MAIL, REGULAR MAIL, & FACSIMILE
JJ Creditors Collect
346 Stayaway Street
Glanston, Texas 33121

Re: Cease and Desist All Communications
Account Number x885-555-4343

Dear Debt Collector:

Pursuant to my rights under applicable home state law and federal debt collection laws, this is a request that you, the company you work for, it’s affiliates and agents immediately cease and desist all communications with me, my family, friends, and associates in connection with this debt and any other alleged debts you claim I owe.

Be advised that I may use recording devices to ensure your compliance and to provide proof against you in case of your failure to comply.

Be advised that you shall not retaliate by filing any reports against my credit bureau with any of the major credit agencies.

Be advised that I will pursue all legal remedies available to me if you fail to comply with my request.

Sincerely,

Lance and Mable Greatlin