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Debt Validation,
or "debt verification", refers to a consumer's right to challenge a debt and/or receive written
verification of a debt from a debt collector. The right to dispute the debt and receive validation are part of the consumer's
rights under the United States Federal Fair Debt Collection Practices Act (FDCPA) and are set out in §809[1] of that act.
Debt validation is a process of forcing debt collectors to verify the validity of the debt in question, as well as their
attempts to collect. Under FDCPA, the collector bears the burden of proof. Generally, debt collectors must be able to prove
that:
- They own the debt legally and have been authorized to collect it from you.
- The full amount
of the debt that they are pursuing is accounted for and documented by your original creditor.
- They can provide a
copy of the original legal contract that you signed with your creditor.
If someone is trying to collect
a debt from you that you do not recognize, that you believe to be paid in full, or that you believe is uncollectible because
the statute of limitations has expired, you definitely should pursue debt validation. If you are the least bit suspicious that the company pursuing
your money is unauthorized to do so, or if you would like to lower your debt load by hoping they can not prove your debt,
you also should pursue debt validation. The following is a step-by-step guide of actions to take to demand your
right to debt validation: - Send the collections agency (or lawyer, etc.) a certified letter asking them
to validate your debt. Allow them 30 days to respond to your request. If they fail to do so, send them another letter 45 days
after you sent the first informing them that they are violating the fcra. sample letter
- Meanwhile, if you do not believe they have the right to collect from you, send the credit bureaus (Experian,
Equifax, and TransUnion) a certified letter disputing collections actions on your report. sample letter
- If the collections agency responds in writing that they have validated the debt, send them a letter
requesting method of verification. also, you may find out whether or not the collection agent is authorized to collect in your state. If they are
not, write another letter stating the violation and threaten to sue if they do not both cease collections efforts and alert
the credit bureaus. sample letter
- If the collections agency responds in writing and does not provide sufficient proof, write them another
letter specifying their violation of FDCPA. Tell them either to cease collections efforts and alert the credit bureaus, or
you will file a lawsuit. Allow at least two weeks for a response, and then follow through with your threat in small claims
court. sample letter
Most collectors will give in before you will have to get the law involved, and some cases may be
much easier than others. For example, remember how collectors either may buy or be assigned to your debt? If a collector has
been assigned your debt, they inherently do not “own” your debt and therefore cannot prove your obligation to
pay (unless there is a clause in your original contract). Similarly, outright deceitful collections agencies probably will
want to rid themselves of your situation as quickly as possible.
It should be said that collections agents can
take legal action against you, and so it almost certainly is not in your best interest to just ignore a debt that you think
cannot be proven. If you fail to take action and demand proof (or lack thereof) from a collections agency, it really does
not matter what you believe to be just and accurate. You still may find yourself with a judgment against you. you should also
know that if a collections agent answers your debt validation letter with a court summons they are in violation on the law.
more info
Attempting debt validation might sound a bit daunting, but the financial benefits that you can gain from enforcing
your rights makes it worthwhile for many people. FDCPA and contract law usually are on your side, and if a collections
company lacks proof of your obligation to pay, then don't.
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