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Debt Validation
Debt validation summary:
Debt validation makes it easier to reject invalid claims made by debt collectors.
Transparency is mandated by law under the Fair Debt Collection Practices Act (FDCPA).
By law, debt collectors must disclose certain details, including how much money you owe.
Debt Validation Definition and Meaning
Debt validation is the process of validating a debt collector’s claim. In other words, the debt collector has to provide details that prove the debt is valid, they have the right to collect it, and they are trying to collect it from the right person.
Debt validation is enforced by law under the Fair Debt Collection Practices Act (FDCPA), which provides clear rules for what information debt collectors must provide.
How debt validation works: Within five days of contacting you, the debt collector sends you a validation notice that details your name, creditor, debt owed, and other information that makes it easier for you to verify their claim. Upon receiving the notice, you have 30 days to reject the claim or request further info.
Key Components of Debt Validation
The Fair Debt Collection Practices Act (FDCPA), debt validation notice, and debt verification notice are key to understanding debt validation. Here’s what debt validation looks like:
A debt collector contacts you and claims you owe debt.
Within five days of first contacting you, the debt collector sends you a debt validation notice (aka debt validation letter) that details the debt that you supposedly owe.
You have 30 days to respond with a debt verification notice (aka debt verification letter). Debt collectors must stop trying to collect from you until they provide further proof of the debt.
These rules are law. If the collection agency breaks these rules, you can send a formal complaint to the Consumer Financial Protection Bureau (CFPB) through its government website, and go from there.
Debt Validation: A Comprehensive Breakdown
Debt validation keeps you safe from errors and shady debt collectors. Debt collectors must provide debt validation letters upfront, and you should respond within 30 days if you plan to dispute any of the details. If you fail to respond within 30 days, disputing becomes harder.
Debt validation is necessary because debt collectors may send you false information. A debt collector may claim you owe a debt that doesn’t exist, or one that belongs to someone else. Debt validation makes it easier for you to spot and fight false claims.
The FDCPA requires debt collectors to provide specific information in debt validation letters.
Here’s what debt collectors must include:
A statement saying it’s from a debt collector trying to collect a debt.
Your name and address, plus the debt collector’s name and mailing address.
The name of the creditor you owe now (and sometimes the original creditor, or one from a specific date).
The account number tied to the debt, if there is one.
A breakdown of the debt showing interest, fees, payments, and credits since a set date.
The total amount you owe right now.
Info on how to reply if you think the debt isn’t yours or the amount is wrong.
A note that you have 30 days to dispute the debt, often with a deadline.
When you contest a claim within 30 days of receiving a validation letter, debt collectors must pause collection attempts until they provide proof that the debt is valid and that you owe it.
Debt Validation FAQs
How long do debt collectors take to respond to debt verification letters?
Under the terms of the FDCPA, debt collectors have five days from their initial communication with you to provide basic debt validation information. They may take longer than that to reply to more detailed debt verification requests. While there is no time limit for when they must respond to those requests, they are not allowed to continue collection activities until they respond.
What is the most common FDCPA violation?
Attempts to collect debts that are no longer owed are common. Other common violations include harassment, making threats, excessive phone calls, and using false information.
What is a dispute under the FDCPA?
When you notify a debt collector that you don’t owe a debt, or that the debt is incorrect.
The FDCPA lets you question whether a debt is really yours. To dispute a debt, you must request validation from the debt collector in writing. When you dispute a debt, the debt collector must halt collection actions until they provide you with written verification that the debt belongs to you.
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