What is required to validate a debt?
A debt validation letter should include the name of your creditor, how much you supposedly owe, and information on how to dispute the debt. After receiving a debt validation letter, you have 30 days to dispute the debt and request written evidence of it from the debt collector.
What do debt collectors need to provide as proof of debt?
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 the account has been sold to another creditor, then that creditor must prove that it has the right to sue to collect the debt.
How do you validate debtors information?
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.
What is credit validation?
Debt validation is simply the act of demanding that a credit agency prove that you owe a specific debt. The right to debt validation is protected under the Fair Debt Collection Practices Act.
How do you validate a debt from the original creditor?
An accounting statement showing how they arrived at the amount they say you owe. The name and address of the original creditor. A copy of the contract you signed with the original creditor. A copy of the agreement authorizing them to collect on behalf of the creditor (if the original creditor still owns the debt)
How does debt validation work?
Debt validation is every person’s right to force the debt collector to prove that a debt is owed. Requesting debt validation requires that a written request is sent to the debt collector before the end of 30 days after being contacted by the collection agency.
Is debt validation a good idea?
Debt validation can be extremely effective. If the debt collector is unable to validate your debt, you can request for the debt to be removed. Without validation, your credit report could be filled with multiple debts that don’t belong to you.
What happens if a debt collector Cannot validate a debt?
If a company can’t provide you with verification of a debt, it legally can’t continue to try to collect from you. It must also ask the credit bureaus to remove any negative reports related to the collection.
How to write a debt validation letter to the credit bureaus?
In your Debt Validation Letter to Credit Bureaus, make sure to include a list of all the information you need. Provide your full name and address so you can receive a verification. Finally, always include a statement mentioning your right to request verification as provided by the Fair Debt Collection Practices Act.
What do debt collectors need to know about debt validation?
Also, a debt collector must also prove they have a legal right to collect the debt. Requesting validation comes with a variety of benefits and can hopefully lead to getting the collection completely dismissed.
How do I verify the legitimacy of a debt?
Fortunately, you can confirm the legitimacy of debt by requesting evidence from the creditor. You can also write to the credit bureau if the creditor fails to respond. In your Debt Validation Letter to Credit Bureaus, make sure to include a list of all the information you need. Provide your full name and address so you can receive a verification.
How to submit a debt validation request under the FDCPA?
Submitting a Validation Request. To be legally valid, your request for proof must be made in writing. A verbal phone request for debt validation is not enough to protect your rights under the FDCPA. In your validation letter, you can dispute the entire debt, part of the debt, or request the name of the original creditor.