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.
Debt collectors are legally required to send you a debt validation letter, which outlines what the debt is, how much you owe and to who, as well as when you need to pay the debt. If you're still uncertain about the debt you're being asked to pay, you can request a debt verification letter to get more information.
I am requesting proof that I am indeed the party you are asking to pay this debt, and there is some contractual obligation that is binding on me to pay this debt. This is NOT a request for “verification” or proof of my mailing address, but a request for VALIDATION made pursuant to 15 USC 1692g Sec.
What Documentation Must the Creditor Provide? But what must the creditor provide by way of documentation? At a minimum, it must produce: A copy of the original written agreement between the parties, such as the loan note or credit card agreement, preferably signed by you.
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.
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.
In order to win a court case, a debt collector must prove that they have proper ownership of the debt, that you actually owe the debt, and that the amount they claim you owe is correct.
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. Why request validation, even if you're ready to pay and you know it's your debt? Simple.
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.
Collectors who don't send these letters could get in trouble with the Federal Trade Commission (FTC) if you file a complaint against them. To formally request debt validation, start by sending a letter via certified mail to the debt collector — LendingTree's debt validation letter template can help you get started.
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.
(d) Legal pleadings
So, you'll notice the FDCPA says the consumer must request validation of the debt or dispute the debt within 30 days or she automatically admits validity of the debt, but the collector can take however long they want to validate the debt.
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.
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.
Debt collectors cannot harass or abuse you. They cannot swear, threaten to illegally harm you or your property, threaten you with illegal actions, or falsely threaten you with actions they do not intend to take. They also cannot make repeated calls over a short period to annoy or harass you.
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.
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.
What is the 777 rule with debt collectors? The “777 Rule” states that debt collectors may attempt to contact a consumer about a single debt up to seven times in seven days. Phone numbers do not matter; it's the number of debts that matters.
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.
By paying the collection agency directly, the notification of the debt could stay on your credit report longer than if you attempt to use another option, like filing for bankruptcy. When institutions check your credit report and see this information on it, it may harm your ability to obtain loans.
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.
Under this Act (Title VIII of the Consumer Credit Protection Act), third-party debt collectors are prohibited from using deceptive or abusive conduct in the collection of consumer debts incurred for personal, family, or household purposes.