What is a Debt Validation Letter?

A Debt Validation Letter is a letter that an individual sends to their creditor or collection agency requesting proof that the debt in question is valid and not outside the statute of limitations for collecting the debt.

The Federal Fair Debt Collections Practices Act (FDCPA) or state legislation defines the statute of limitations for recovering a debt. If the debt exceeds the timeframe which should be included in the certification letter, it is no longer possible to undertake collection efforts.

How to fill out a Debt Validation Letter?

A Debt Validation Letter requires you to read and understand the provided information before filling out the letter.

Page 1

Name

Enter your full name.

Address

Enter your address.

City, state, and ZIP

Enter the city, state, and ZIP code of your address.

Date

Enter the date when the letter is being filled out.

The person you are sending the letter to

Enter the name of the person or the office you are addressing the letter to.

Letter is being sent in response to:

Mark the first box if you are responding to a notice sent to you at a specified date, enter the date. Mark the second box if you are responding to a listing on your Credit Report.

Content of the letter

The first part of the body of the letter states that you are not refusing to pay and you are only sending a notice as stated in the Fair Debt Collection Practices Act, 15 USC 1692g that the claim is disputed and therefore you are requesting validation.

The letter is not a request for “verification” but rather a request for validation made pursuant to the provided title and section. You are also requesting evidence that you have a legal obligation.

You are also informing the receiver that if they have reported any false or invalidated information to any of the three major credit bureaus namely Equifax, Experian, or TransUnion, this action may result in fraud under both Federal and State Laws. If there is any negative mark that you see in your credit reports, do not hesitate to execute a legal action against the offices that committed these violations under the following: Violation of the Fair Credit Reporting Act, Violation of the Fair Debt Collection Practices Act, and Defamation of Character.

If the office is able to provide you with the requested documentation, you may require at least 30 days to review the information you are given. During that time, all collection that you are involved in must cease and desist. Also in that period, if any action is done that is considered detrimental to any of your credit reports, you may consult with your legal counsel for a lawsuit.

If your letter is not responded to by the recipient within 30 days, all the references to your account must be erased and completely removed from your credit information and a copy of such deletion request must be given to you immediately.

Signature

Provide your signature.

Page 2

CEASE AND DESIST

In this part of the letter, you are requesting that no telephone contact shall be made to your home or place of employment. If their offices continue to attempt to contact you it will be considered harassment and you may choose to file a lawsuit. You are also stating that any future communications with you MUST be in writing and sent to the address that you entered in the letter. You are also advising the offices and their client to assure that their records are in order before you are forced to take legal actions.

Signature

Provide your signature.

Page 3

CREDITOR/DEBT COLLECTOR DECLARATION

Name and Address of Alleged Creditor

Enter the full name and address of the alleged creditor.

Name on File of the Alleged Debtor

Enter the name of the Alleged Debtor on the file.

Alleged Account number

Enter the alleged account number of the debtor.

Address on File for Alleged Debtor

Enter the address of the alleged debtor on the file.

Amount of the Alleged Debt

Enter the amount of the alleged debt.

The date that this alleged debt became payable

Enter the date when the alleged debt became payable.

Date of Original Charge or Delinquency

Enter the date of the original charge or delinquency.

Was this debt assigned to a Debt Collector or Purchased?

Enter whether the debt was assigned to a debt collector or if it was purchased.

Amount Paid if Debt was Purchased

Enter the amount paid if the debt was purchased.

Commission for debt collector if collection efforts are successful

Enter the amount of commission the debt collector earns if the collection efforts are successful.

Page 4

REQUESTED INFORMATION

This section requires you to attach the copies of the following:

Agreement with the client that grants a collection agency the authority to collect the debt. Enter the name of the collection agency.
Provide the signed agreement that the Debtor has made with the Debt collector or other confirmable proof that Debtor has contractual obligation to pay Debt Collector
Provide any agreement or written document that shows the signature of the Debtor, wherein the Debtor agrees to pay the Creditor.
All the statements while the account was open.

Have any insurance claims been made by any creditor regarding this account?

Mark Yes if there were any insurance claims made. Mark No if there were not any insurance claims made regarding your account.

Have any judgments been obtained by any creditor regarding this account?

Mark Yes if there are any judgments obtained. Mark No if there are no judgments obtained by any creditor regarding this account.

Bonding Agent of Debt Collector

Enter the name and address of the bonding agent of the debt collector in case legal actions become necessary. Enter the name of the Debt Collector in the field provided.

Signature of Creditor

The creditor must provide a signature.

In this section, you are requiring the office to complete this form along with copies of the information you have requested, which will initiate the right to collect the alleged debt from you within 30 days from the date of the receiving of this letter.

The collection will not be considered if any part of this form is not completed and if you are not provided with the requested documents.

You have at least 30 days to process this information.

Frequently Asked Questions About a Debt Validation Letter

Who writes a Debt Validation Letter?

A Debt Validation Letter is usually written when a debtor wants to verify that the loan they are paying is completely legal and that the Debt is truly yours to settle.

What is the purpose of a debt validation letter?

A debt validation letter's purpose is to obtain information from a collection agency regarding the status of the alleged debt that is being reported to your credit report. In short, you are asking them for proof that you owe money. It serves as a written request for the debt collector to provide evidence that you actually owe the money they are trying to collect. Moreover, it can help protect you from any potential legal action that the debt collector may take against you.

If you do not recognize the debt or if you believe that the amount is incorrect, you can send a debt validation letter to the collection agency to request more information.

The goal of this letter is to get the collection agency to provide specific information about the debt, such as the date of the loan, the amount owed, and the name of the creditor. If the collection agency cannot provide this information, then they may not be able to prove that you actually owe the money. In this case, they may back off and stop contacting you.

Keep in mind that sending a debt validation letter will not erase the debt from your credit report. However, it can help protect you from any legal action taken by a debt collector. If you receive a debt validation letter from a collection agency, it is important to respond promptly. Failure to do so could result in legal action being taken against you.

What is included in a debt validation letter?

A debt validation letter should have certain key components, including:

The amount of the debt and the creditor's name — If you don't owe the debt, you should not validate it. If your letter requests validation of a nonexistent debt, or if you make an error in this section, you may accidentally confirm the existence of a valid debt which will damage your efforts to stop collection calls. If such a mistake is made, a good letter should also include a request for the deletion of your personal identifying information from the debtor's account.
A request for validation of the debt, specifying that the letter is sent pursuant to the Fair Debt Collection Practices Act — This informs them that you are aware of your rights under federal law and will not be bullied into paying a debt you don't owe.
A statement that you dispute the validity of the debt — This asserts your legal rights and puts the collector on notice that you will be fighting any attempt to collect this debt.
Your contact information, including your name, address, and phone number — This allows the collector to contact you with the results of their validation attempt.
A statement indicating that you want the debt collector to cease all collection efforts until you receive a validation of the debt — If this is not included, you may continue to get calls from collectors for an unspecified period of time. You should control when collection activities stop. If it will be difficult for you to be reached by phone, you should include a mailing address as well.
The date — The letter should specify the date that the validation letter was sent. If it does not, then you may have a problem if you sue the debt collector later and they claim they attempted to validate the debt before this date.

Do debt validation letters really work?

Yes, debt validation letters work by law. When a collector receives a debt validation letter, it is required by the FDCPA (Fair Debt Collection Practices Act) and FCC Rule to investigate and validate your debt along with a copy of the original signed contract.

Once they receive the letter you should start getting responses back from them either asking for information or letting you know that it is in fact your debt; however, this process can take up to 30 days.

If you don't hear anything back or they continue to harass you even after receiving the letter, be sure to reach out to a consumer law attorney who can help represent you in this situation and stop the collector from contacting you any further.

The bottom line is that debt validation letters do work and provide a legal obligation to the debt collector. The burden of proof falls on the debt collector, not you, so it is important that you reach out for help if they continue to contact you after receiving your letter.

How do I write a debt validation letter?

You can write a debt validation letter on your own. However, it is best to have an attorney help you with the letter to ensure that all of your bases are covered.

When you send a debt validation letter, you are asking the creditor to provide proof that you actually owe the money. The creditor must then provide detailed information about the debt, including the amount of money owed, the date of the debt, and the name of the creditor.

If the creditor cannot provide this information, or if the information is not accurate, then you may be able to dispute the debt. This could potentially lead to the debt being eliminated or reduced.

When you write a debt validation letter, it must have the following:

Your name, address, and phone number
The name of the collection agency that is contacting you
A request that your contact information should be verified within 30 days of receiving the letter. This should include a statement such as "If we have no record of this alleged debt, then it will be considered an unfounded claim and will be closed"
A statement that the debt is disputed
The amount of the debt
The date the debt was incurred
The name of the creditor
A request for verification of all of the information listed, including a copy of any documentation that supports the claim

How do I get validation of debt?

To request verification of a debt, you must send a debt validation letter to the credit bureau. This letter should include your full name and mailing address, the account number for the debt in question, and a request for verification of the debt. The credit bureau will then send you a letter verifying the debt.

If you have received a debt validation letter from the credit bureau, it is important to review it carefully. The credit bureau is required to provide you with some basic information on the debt, including the name of the creditor that claims you owe them money. This letter should also include how much money they claim you owe them and when you supposedly became delinquent on the account. If this information does not match up with your own records, then it may indicate that there has been a mistake.

In some cases, you may be able to dispute the debt altogether. If you can provide evidence that the debt is not yours, or that it was discharged in bankruptcy, then the credit bureau must remove it from your credit report. However, if you cannot disprove the debt, you will still be responsible for paying it.

If you have received a debt validation letter, it is important to take action promptly. You should either dispute the debt or start making payments on it. Ignoring the letter could result in your credit score taking a hit, and may even lead to legal action being taken against you.

By understanding your rights and responsibilities when it comes to debt validation, you can make sure that you are taking the right steps to protect your credit.

Can I ask for debt validation after 30 days?

You only have 30 days to send a debt validation letter. After that, any debt collector has the right to sue you if your debt isn't validated.

When is the 30-day period over? The clock starts ticking on day one after you first make contact with a debt collector. Every time someone contacts you about an unpaid bill, start counting: Each letter, phone call, and email is another day closer to the 30-day deadline.

How do you know when you've reached the 30-day limit? The date of your last contact with the collector is key. If you make a payment or agree to a payment plan, that resets the clock. So, even if you've been dealing with a debt collector for months, you still have 30 days to send a validation letter if you haven't already.

If the debt collector can't prove that you actually owe the money, they can't sue you. In that case, they may back off or try to work out a payment plan with you.

Disputing debt starts the validation process. A debt collector must then prove that you owe what they say you owe. That means sending copies of statements and other documents to show your balance, interest charges, late fees, and how long it's been since you made any payments. If there were any errors in how the bill was originally calculated, the debt collector must correct those as well.

Debt collectors who fail to validate a debt may have to pay you damages of up to $1,000 if they file a lawsuit against you. If you've already been sued for an unvalidated debt and lost, contact us about whether we can still help you after the judgment has been entered.

What happens if a debt collector cannot validate a debt?

When a debt collector cannot validate a debt, they must stop collection activities.

If a debt collector is harassing you or your family, they are likely in violation of the Fair Debt Collection Practices Act (FDCPA). The FDCPA prohibits debt collectors from engaging in abusive or unfair practices when trying to collect a debt. This includes contacting you at work if you have asked them not to, threatening you with legal action if you do not pay the debt, and pretending to be from a government agency.

If you are being harassed by a debt collector, it is important to take action. You can report the debt collector to the Federal Trade Commission (FTC) or your state attorney general's office. You can also sue the debt collector for violating the FDCPA. However, if you are being harassed by a debt collector it is very likely that they are also violating the Fair Credit Reporting Act (FCRA).

The FCRA allows consumers to sue debt collectors who have violated it. It is often easier to sue under the FCRA because there are no damages required. In order to sue under the FDCPA, you must be able to show that your actual damages are in excess of $1,000. However, if a debt collector violates the FCRA then they have already committed a violation of the FDCPA and you do not need to prove actual damages.

What is the difference between debt validation and debt verification?

Debt validation and debt verification are two separate processes. A debt validation happens before a lawsuit is filed and a debt verification happens after a lawsuit is filed.

Debt validation is when you ask the creditor to send you proof that you owe the debt. The creditor must send you a copy of the agreement, bill, or other documentation that shows you owe the debt. If the creditor cannot send you proof that you owe the debt, then the debt is considered invalid.

Debt verification is when you ask the court to verify that you owe the debt. The court will look at the agreement, bill, or other documentation and make a determination if you owe the debt. If the court decides that you do not owe the debt, then the debt is considered invalid.

Both debt validation and debt verification are important processes to protect yourself from being sued by a creditor. If you are able to prove that you do not owe the debt, then the creditor cannot sue you for the debt.

What is considered debt validation?

A proper debt validation process is vital for any debt collector to follow in order to be able to continue its debt collection efforts and ultimately get the consumer's attention. The "consumer's attention" is one of the most important things you can possibly get because validating a debt means nothing more than getting someone on the phone. Once you have that person on the phone, you can begin to negotiate with them for the settlement of the debt.

The Fair Debt Collection Practices Act (FDCPA) is a federal law that mandates how third-party debt collectors are allowed to communicate with consumers, including validation requirements. The FTC requires the following information be included on any collection letter sent by a collector attempting to collect a consumer's debt:

The name of the creditor to whom the debt is owed
The amount of the debt
The date of the original debt transaction
A statement that unless the consumer disputes the validity of the debt within 30 days, the debt will be assumed to be valid

What happens after the debt validation letter?

After a debt validation letter, you have 30 days to dispute the debt.

If you have any documentation that disputes the legitimacy of the debt, such as proof of payment, a credit report showing the account was closed or paid in full, or a letter from the creditor stating that you do not owe the debt, be sure to include it with your dispute.

If you're disputing the debt because you don't recognize it or believe that you owe the debt, put the creditor on notice that unless they validate the debt within 30 days of your request, their right to collect will end. If they fail to do so, they will have breached the original contract with you and committed a material breach of your contract with them.

How do credit bureaus verify debt?

Credit bureaus verify debts by matching a consumer's name, address, and Social Security Number with data provided by creditors. In return for the "free" service of credit reporting, lenders use credit reports to evaluate consumers' ability to pay back loans.

Credit bureaus collect information from a network of lenders. They also get data from public records, such as court judgments and tax liens.

What happens if creditors don’t respond in 30 days?

When a creditor does not respond in 30 days to a debt validation letter, the credit bureau must remove the debt from your credit report.

If you are struggling to pay your debts, it is important to understand your rights. According to the Fair Debt Collection Practices Act (FDCPA), you have the right to request that a creditor validate a debt. This means that the creditor must provide evidence that you actually owe the debt. This is called debt validation.

If the creditor responds by sending you information about your debt, this usually satisfies their validation requirement under the FDCPA. However, if they do not respond to your request for validation within 30 days of receiving it, then they are obligated to delete the debt from your credit report.

When a creditor fails to validate a debt, it can improve your credit score.

When the creditor fails to validate the debt, this is called an "invalid" or "unverifiable" debt. If you learn that there is an invalid debt on your credit report, you should dispute the entry with the credit bureau and ask them to remove it. The credit bureau must then investigate the dispute and delete the debt from your report if it cannot verify that you owe it.

You can improve your credit score by having invalid debts removed from your credit reports.

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Fillable Form Debt Validation Letter