Significance

• Collection letters are sent by third party debt collectors or by a debt collection department for a specific creditor as a demand for payment. These letters are sent once a consumer is over 30 days behind on a debt.
  
  

Time Frame

• Collection letters can only be sent to consumers for as long as the statute of limitations in their state will allow. Regardless of this statute, however, negative items can be reported to credit bureaus for up to 7 years.
  
  

Considerations

• In response to unfair and deceptive practices, over 5,789 lawsuits were filed as of June 30, 2010 under the Fair Debt Collection Practices Act by consumers. When in receipt of a collection letter, this act encourages consumers to review it for compliance.