« Fair Debt Collection Practices ACT or FDCPA

Debt Validation Letters

admin, 17 June 2008,
Categories: Credit Repair
Tags: credit repair

First Time Visitor? Welcome

FinancialLearn.com is dedicated to finding great deals, free stuff, and promote frugal living. We are delighted to have you here.

Sound Fun? Have our articles delivered to you via RSS Feed or E-mail to be reminded of new and upcoming contests and articles.

Debt validation is the proof that you actually owe the debt and that the entity trying to collect has the right to do so. With the prevalence of junk debt collectors and unscrupulous collection agencies this is not only a term to know but also to know how to use. If you have ever received a letter requesting money that you are not sure you owe or on a debt or credit card that you paid off years ago than you need to send a letter asking for debt validation.

FDCPA

Fair Debt Collection Practices Act is a federal law that regulates debt collectors. This law gives you certain rights and the debt collectors certain responsibilities. One of those responsibilities is to send you a debt validation notice within five days of its first communication to you. This law provides many protections to consumers from debt collectors and their practices.

Debt validation notice

You are to receive a written notice informing you that you have 30 days to dispute the validity of the debt from the debt collector. This is usually sent in the first communication letter. The debt collector can call, write and try in any legal way to collect on the supposed debt until they receive a dispute letter requesting debt validation. If you do not respond the debt collector can assume the debt is valid. If your first communication is by phone you are to receive a debt validation notice within 5 days from the initial contact. The written notice from the debt collector must include:

• Creditor
• Amount of debt
• The debt will be assumed to be valid unless you dispute it within 30 days
• That you have 30-days to request and receive the name and address of the original creditor within
• That you have 30-days to request validation of the debt

Request for validation

For you to receive protection under the FDCPA you must request you debt validation in writing. If you request it over the phone then follow up in writing, certified mail return receipt. You will want to maintain proof of any and all correspondence with a debt collector. If you have to pursue some legal remedy the copy of the first communication and the debt validation certified receipt with the return signature are important. The request for debt validation stops all further collection activity until you have been provided with the information.

Debt validation letter

The body of your debt validation letter can look something like this: “This letter is sent in response to [phone call/letter] received by you on [date]. Pursuant to my rights under federal debt collection laws, I am requesting that you provide validation of this debt. This is not a request for validation of my address. Note this is not a refusal to pay, but a request that your offices provide me with evidence that I have a legal obligation to pay you. You are hereby notified that if you do not comply with this request, I will immediately file a complaint with the Federal Trade Commission and the [your state] Attorney General’s office. Civil and criminal claims will be pursued.” This is one time that using a form letter is a good idea you can use this one or one similar to it.

Debt Validation

If you have sent a request to the collection agency within 30 days of receiving the validation notice then the collector must send you proof that it either owns the debt or has been assigned the debt by the original creditor. The verification must include documentation from the original creditor. A printout of the amount owed is not sufficient. If you do not receive this information the debt collector is barred from placing the item on your credit report or attempting further collection. If a collector fails to follow the FDCPA guidelines you may sue them in federal or state court for up to 1,000. You should report any violations of this act to the Federal Trade Commission (FTC).

Next Step: Debt Validation Letters