Send a validation request within 30 days of receiving contact from a collection agency, otherwise, they'll assume the debt is valid and can legally continue to contact you about it.
Once you receive the debt validation information, you have 30 days to dispute the debt in writing. Failing to request verification in writing or within this time period can affect your ability to assert your rights under the debt collection rule.
(5) Validation period means the period starting on the date that a debt collector provides the validation information required by paragraph (c) of this section and ending 30 days after the consumer receives or is assumed to receive the validation information.
A debt validation letter is a letter that debt collectors must provide that includes information about the size of your debt, when to pay it, and how to dispute it. A debt collection letter essentially proves you owe the debt collector money.
A debt collector must stop all collection activity on a debt if you send them a written dispute about the debt, generally within 30 days after your initial communication with them. Collection activities can restart, though, after the debt collector sends verification responding to the dispute.
If the collection agency failed to validate the debt, it is not allowed to continue collecting the debt. It can't sue you or list the debt on your credit report.
What Happens Now? If a debt collector can't verify your debt, then they must stop contacting you about it. And they have to let credit bureaus know so they can remove the debt from your credit report.
Once you receive the validation information or notice from the debt collector during or after your initial communication with them, you have 30 days to dispute all or part of the debt, if you don't believe that you owe it. If you receive a validation notice, the end date of the 30-day period will be specified.
Ultimately, a debt verification letter should ask for proof that any debt you're asked to pay is yours. It's also wise to send your verification request via certified mail. That way, you can document both the date you sent it and the date it was received.
While debt validation requests can be a useful tool, they are not effective at resolving the issue. In most cases, creditors and collection agencies are able to provide the necessary documentation to prove the validity of the debt.
Don't provide personal or sensitive financial information
Never give out or confirm personal or sensitive financial information – such as your bank account, credit card, or full Social Security number – unless you know the company or person you are talking with is a real debt collector.
If you didn't receive a debt validation letter, you can begin to build a case against the collection agency. The first step is to explicitly ask for a debt validation letter.
If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
Your Right to a Validation of the Debt
The debt collector must inform you of this right and you must make the request within 30 days of the first contact.
Debt validation letters are mandatory under the FDCPA, which states that “within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector … shall send the consumer a written notice including” several items: The amount of debt.
Debt Validation Letter Example
I am requesting that you provide verification of this debt. Please send the following information: The name and address of the original creditor, the account number, and the amount owed. Verification that there is a valid basis for claiming I am required to pay the current amount owed.
A 609 dispute letter is actually not a dispute but is simply a way of requesting that the credit bureaus provide you with certain documentation that substantiates the authenticity of the bureaus' reporting.
A charge-off can lower your credit score by 50 to 150 points and can also look very bad on your credit report. It signals to potential lenders that you could skip out on your debt obligations for extended periods of time.
How to Request Debt Verification. To request verification, send a letter to the collection agency stating that you dispute the validity of the debt and that you want documentation verifying the debt. Also, request the name and address of the original creditor.
Once your debt has been sold you owe the buyer money, not the original creditor. The debt purchaser must follow the same rules as your original creditor. You keep all the same legal rights. They cannot add interest or charges unless they are in the terms of your original credit agreement.
Send a 'drop dead' letter
You have the right to ask them to stop contacting you. To do so, you can send what's sometimes referred to as a “drop dead letter” — a written notice to the debt collector informing them you want no further contact. By law, debt collectors are required to follow this request.
Your original creditor may be most willing to take your debt back if you have already worked out a plan with your debt collector and begun repaying what you owe. So, if you want to bypass a debt collector, contact your original creditor's customer service department and request a payment plan.
Let's Summarize... If you're facing debt collection, it's important to understand how the process works and what options you have. If you ignore a debt in collections, you can be sued and have your bank account or wages garnished or may even lose property like your home. You'll also hurt your credit score.
In this article, “debt validation letter” means the initial notice a debt collector must send you under federal law, and “debt verification letter” means a letter you send to the debt collector to request more information and/or to dispute the debt.