The key difference between validation and verification is who must provide proof of the debt. Validation involves seeking proof from a third-party debt collector, while verification involves seeking proof from the original creditor.
Typically, once you receive the validation letter you can ask for more information or work on a settlement if it's yours. If you are going to ask for more information ask for more details around specifically why they believe it is your debt, if they are licensed to collect debt and how old your debt is.
And sometimes someone is trying to scam you. That's why it's important to verify your debts with the proper documentation, such as a debt validation letter. Doing so can protect you from scammers, prevent debt collectors from pestering you and keep you from paying money you don't owe.
Under the Fair Debt Collection Practices Act (FDCPA), a debt collector must respond to a request for a debt validation letter. If they don't, they're in violation of the act. You can report them to your state's attorney general, the Federal Trade Commission (FTC), or the Consumer Financial Protection Bureau (CFPB).
Within five days after a debt collector first contacts you, it must send you a written notice, called a "validation notice," that tells you (1) the amount it thinks you owe, (2) the name of the creditor, and (3) how to dispute the debt in writing.
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.
Can you dispute a debt if it was sold to a collection agency? Your rights are the same as if you were dealing with the original creditor. If you do not believe you should pay the debt, for example, if a debt is stature barred or prescribed, then you can dispute the debt.
To further establish as evidence the date and fact that you sent the debt collector a DV letter, it's a good idea to have someone else mail your DV letter along with an "Affidavit of Mailing". This signed and notarized affidavit by a third party will firmly establish your evidence of mailing the DV letter.
However, they can pass the debt back to your original creditor who can apply for a court order known as an 'order to obtain information' that allows them to access your bank accounts. This may mean you're invited to a court hearing to answer questions about your financial situation under oath.
Validating the debt is one of the first steps you should take after receiving notice of being sued by a debt collector. The process of debt validation involves ensuring that the debt for which you are being sued is legitimate and that the debt collector has the legal right to collect 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.
Validation is the process of checking whether the specification captures the customer's requirements, while verification is the process of checking that the software meets specifications. Verification includes all the activities associated with the producing high quality software.
A debt validation letter should include the name of your creditor and how much you owe, The letter will include information about when you need to pay the debt and how to dispute it.
2) What is the 609 loophole? The “609 loophole” is a misconception. Section 609 of the Fair Credit Reporting Act (FCRA) allows consumers to request their credit file information. It does not guarantee the removal of negative items but requires credit bureaus to verify the accuracy of disputed information.
Debt collectors are not permitted to try to publicly shame you into paying money that you may or may not owe. In fact, they're not even allowed to contact you by postcard. They cannot publish the names of people who owe money. They can't even discuss the matter with anyone other than you, your spouse, or your attorney.
Most states or jurisdictions have statutes of limitations between three and six years for debts, but some may be longer. This may also vary depending, for instance, on the: Type of debt. State where you live.
Specifically, the rule states that a debt collector cannot: Make more than seven calls within a seven-day period to a consumer regarding a specific debt. Call a consumer within seven days after having a telephone conversation about that debt.
Debt collectors may attempt to collect a debt from you without sending a debt validation letter. If this happens, you have the right to request the agency provide you with proof you owe the money before they can report the debt to the credit bureaus.
If you've been contacted by a debt collection agency about a debt you may owe, it's important to understand your rights. Debt collectors are required by law to validate certain details about the debt in question to help you determine whether it's really your responsibility.
A debt trap means the inability to repay credit amount. It is a situation where the debtor could not be able to repay the credit amount.