Below is an example of a debt validation letter to validate your debt. The Fair Debt Collection Practices Act (FDCPA) provides you the ability to ask for a debt validation and offers you a variety of safeguards against debt collectors.
To get the best results You must learn about the FDCPA and debt validation if you’re not already. We’ll walk you through the process to ensure you are aware of your rights and the best way to proceed to get your credit score back on track.
How does the collections process work?
There are three primary participants in the process of collecting debt. The first is the creditor who started it all who is the company or person who owes you the debt. This could be the credit card company or the doctor’s office or the landlord trying to collect the debt.
When the original creditor is exhausted of trying to get the cash, they will sell the debt to a third party which is the debt collector.
Debt collectors specialize in collecting debts. They contact and send letters to debtors who are suspected of being indebted. This third party is the credit bureau or consumer reporting agency. These are companies such as Equifax, Experian, and TransUnion.
Any person, whether an original creditor or debt collector, is able to report the late payment or any other financial details that are negative to the credit bureau.
The credit bureaus store the information on file, and lenders look over your credit reports to decide whether they will grant you an credit and what rate.
Note: The FDCPA is a federal law regulating collections agencies. It does not cover original creditors, and it does not cover credit reporting agencies like Experian.
What exactly is debt validation?
The federal government passed the FDCPA to safeguard consumers against unfair practices and harassment of collection agencies. In addition it stipulates that debt collectors can’t call at unreasonable times. In addition the debt collector has to stop contacting a person when they notify them that they do not want to be called.
Perhaps the most important thing is that the law stipulates that debt collectors must present evidence that the debt they wish to collect is true and they are entitled to take it to court.
If you are able to seek debt validation, you are required to submit the process within a specified time frame. When you receive a call from the debt collector the first time, you must send your debt validation request within the 30 days.
Contacting an agency for collection directly isn’t advised because your rights may not be secured. There’s no evidence of the conversation and you could let your emotions take the most of you. For the most efficient results and to ensure that you have covered all legal needs, it’s recommended to send an official letter of debt validation.
Debt Validation Letter VS. Debt Verification Letter
These letters do not have official names. Many experts refer to the note the debtor is alleged to write to an individual debt collector as the credit verification letter. Additionally they refer to the correspondence received from the collector as the confirmation letter of debt.
For some the contrary, a debt validation letter is similar to an official debt verification letter. the terms are often used interchangeably. Some even refer to it as”debt dispute letter” or “debt dispute letter.” In this article, we’ll refer to a debt validation form as the one you write to the debt collector to request that they confirm your debt. However, in the end it doesn’t matter what it’s referred to as so long you use it as intended.
How to Write a Debt Validation Letter
The letters for debt validation should be brief and professional. It is not necessary to disclose any information regarding your debt. In reality, this is advised against. Never admit that you owe the debt or reveal the date you will make any payments.
If you did, you may accidentally reset the time limit for the debt. Depending on the time to expiring, you could increase the number of years to match the amount of time a debt collector could pursue you for your debt.
When you write your letter of debt validation you should mention when and how they first called you. For instance that it was via the phone, you should mention the time and date. If you got a letter through the mail, include the date that it was sent.
Then, you can simply state your request that the debt collector confirms the debt. In order to demonstrate that you understand your legal rights and to inform them that you will report them to the appropriate authorities in the event that they fail to respond within a timely manner.
Another crucial aspect of the process to validate your debt is sending your debt validation form via certified mail. This will give you confirmation that you actually received the letter from your debt collection agency.
If you’re dealing potentially tricky companies, it’s a good idea to keep a record of every step of the process. Keep this document and copies of all other documents you’ve given and received in the event that you have to file a complaint against the debt collection company to the appropriate regulators.
After Delivering the Debt Validation Letter
The debt collection agency has 30 days to answer your request for validation of debt. If they don’t respond, they’re not permitted to make more attempts to collect on the debt. If they do it, they’re in violation of the FDCPA and you can file a complaint with the Consumer Financial Protection Bureau (CFPB) and the office of your state attorney general.
It is possible to find out that your debt was sold again to a different collection agency. In this case you’ll have to file an updated debt validation form within the first day you get a response from them.
If they don’t provide you with the correct debt verification You have a couple of different options to respond. You can deny the debt in totality, but collection efforts won’t stop. It is also more difficult to improve your credit score in the next few years, not to mention being eligible for new credit.
You can also choose to pay off the entire debt, if it is possible. The other option is to pay off the debt through the agency that collects. This could mean paying less than the amount you owe, or making monthly payments for a specific time.
Before you make any decision make sure you know the laws of your state regarding time limits. This will inform you whether you’re legally required to pay the debt. If the time limit has expired and you’re no longer be sued for the amount due.
Debt Validation Letter Samples
Note: These debt validation letters are only samples. They are not fill-in-the-blank form letters. Therefore, do not copy these letters exactly. Instead, you should customize the letters to your situation.
Debt Validation Letter Template (1/2)
To Whom It May Concern:
This letter is being sent to you in response to a notice sent to me on (Date) or a listing on my credit report (Choose Which Sentence Best Represents Your Situation). Be advised this is not a refusal to pay, but a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (8), stating your claim is disputed, and debt validation is requested.
This is NOT a request for “verification” or proof of my mailing address, but a request for VALIDATION made pursuant to the above-named Title and Section. I respectfully request your offices provide me with competent evidence that I have any legal obligation to pay you.
At this time, I will also inform you that if your offices have reported invalidated information to any of the 3 major credit bureaus (Equifax, Experian, or TransUnion), this action might constitute fraud under both Federal and State Laws. Due to this fact, if any negative mark is found on any of my credit reports by your company or the company that you represent, I will not hesitate in bringing legal action against you and your client for the following:
- Violation of the FCRA
- Violation of the FDCPA
- Defamation of Character
If your offices are able to provide the proper documentation as requested in the following Declaration, I will require at least 30 days to investigate this information, during which time all collection activity must cease and desist. Also, during this debt validation period, if any action is taken which could be considered detrimental to any of my credit reports, I will consult with my legal counsel.
This includes any listing of any information to a credit reporting repository that could be inaccurate or invalidated. If your office fails to respond to this debt validation request within 30 days from the date of your receipt, all references to this account must be deleted and completely removed from my credit report, and a copy of such deletion request shall be sent to me immediately.
(OPTIONAL CEASE & DESIST) I would also like to request, in writing, that your offices make no further telephone contact to my home or place of employment. If your offices continue to attempt telephone communication with me, it will be considered harassment, and I will have no choice but to file suit. All future communications with me MUST be done in writing and sent to the address noted in this letter.
It would be advisable that you and your client assure that your records are in order before I am forced to take legal action.
Best Regards,
Your Name
Debt Validation Letter Template (2/2)
CREDITOR/DEBT COLLECTOR DECLARATION
Please provide all the following information and submit the appropriate forms and paperwork within 30 days from the date of your receipt of this debt validation request.
Name and Address of Alleged Creditor:
______________________________________________________
Name on File of Alleged Debtor:
_____________________________________________________________
Alleged Account #:
_____________________________________________________________
Address on File for Alleged Debtor:
____________________________________________________________
Amount of debt:
_____________________________________________________________
Date that this debt became payable:
_____________________________________________________
Date of original charge off or delinquency:
___________________________________________________
Was this debt assigned to a debt collector or purchased?
____________________________________________
Amount paid if the debt was purchased:
___________________________________________________________
Commission for debt collector if collection efforts are successful:
____________________________________
Please attach a copy of the agreement with your client that grants (Collection Agency Name) the authority to collect this alleged debt.
Also, please attach a copy of any signed agreement debtor has made with the debt collector or other verifiable proof debtor has a contractual obligation to pay the debt collector.
Please attach a copy of any agreement that bears the debtor’s signature, wherein they agreed to pay the creditor.
Please attach copies of all statements while this account was open.
Have any insurance claims been made by any creditor regarding this account?
YES or NO (circle one)
Have any judgments been obtained by any creditor regarding this account?
YES or NO (circle one)
Please provide the name and address of the bonding agent for {Name Of Debt Collector}, in case legal action becomes necessary:
______________________________
______________________________
______________________________
Authorized Signature For Creditor
______________________________
Date
You must return this completed form along with copies of all requested information, assignments, or other transfer agreements, which would establish your right to collect this alleged debt within 30 days from the date of this letter.
Your claim cannot and WILL NOT be considered if any portion of this form is not completed and returned with copies of all requested documents. This is a request for debt validation made pursuant to the FDCPA. Please allow 30 days for processing after I receive this information back.
