Having a debt go to collections can be a real pain. Having a debt go to collections when it shouldn’t, or worse, being contacted by debt collector for a debt that isn’t yours is even more of a pain.
This is why debt validation is important.
People Make Mistakes
The debt validation process helps you confirm the debt is truly yours before you make payments to debt collection agencies that are occasionally mistaken.
While you would expect debt collection agencies to only collect debts that are owed, they sometimes try to collect on debts someone no longer owes or never owed in the first place. In some cases this is because of mistaken identity, in others it could be a scam. Requesting debt validation protects you either way.
What Is A Debt Validation Letter?
The debt validation letter is the letter sent by debt collection agencies to certify that the debt is truly yours. Collection agencies are obligated by the Fair Debt Collection Practices Act to issue a debt validation letter that details the debt, the amount owed, the name of the creditor, the time limit on the debtor’s rights to dispute the debt (30 days) and other details upon your written request.
The letter is supposed to be sent within five days after first contact with the debtor. If the first point of contact is through phone, the debtor should instead insist the debt collection agency communicate in writing. If the debt validation letters leaves you with more questions, you can send a debt verification letter to contest the debt or seek more answers.
Debt Verification Letter
You have 30 days to dispute the debt if you do not think the debt mentioned in the debt validation letters is yours, either because it has expired or it simply doesn’t belong to you. Debt collection agencies are not authorized to contact you, call you, or start collecting payment until they send you written confirmation that you owe the debt if you dispute it in writing.
The letter to contest the debt should be dated, and sent via certified mail so a record of the debt collector’s receipt of the male is generated. Additional information that one can seek in their letter include; why the debt collection agency believes they are responsible for the debt, if the debt collector is licensed to collect the debt, and how old the debt is.
You can also designate which communication methods the debt collection agency is allowed to use or specify they only contact you through your lawyer. If the debt collector maintains contact or initiates harassment, you can file a complaint with either; the attorney general’s office in your state, the Federal Trade Commission and the Consumer Financial Protection Bureau.
On receipt of the debt verification letter, the debt collectors send a debt verification letter if they have sufficient information on the debt. If they don’t have enough evidence to establish you owe the debt, they may discontinue all collection efforts. If they respond, compare their records they send with your own documentation.
How To Seek Debt Relief
If tit turns out the debt is valid as per the claims of the debt collection agency, then you may try to work out a payment plan with the collector or seek to settle it for a partial payment. Partial payment of a debt to creditors is also referred to as debt relief.
In some cases you may be better served by enlisting the services of a company such as Freedom Debt Relief, which offers a complete guide on debt relief to assist you in that regard.
The most important thing to remember is to never accept responsibility for a debt until it is proven to be yours. Collectors may ask you to do things like send a good faith payment in order to straighten things out. Doing this could open you up to legal action by the collector if the statute of limitations for doing so has passed. This is but one of many reasons why debt validation is important. Take it seriously.
