Debt Validation
Debt Verification
Debt verification summary:
Debt verification involves asking a debt collector for proof that you owe the debt and that it has the right to request payment from you.
The process starts with sending a debt validation letter to the debt collector.
Legally, debt collectors must put collection activities on hold until they respond to your request for debt verification.
Debt Verification Definition and Meaning
Debt verification, also known as debt validation, is verifying that you actually owe the debt a debt collector says you do. It's a right you have under the Fair Debt Collection Practices Act (FDCPA).
You initiate the debt verification process, usually by sending a letter to the debt collector requesting validation of the debt. The debt collector is legally obligated to respond to these requests and may not seek payment from you until verification has been made.
Real-Life Example of Debt Verification
A collection agency reaches out to you with what's known as a debt validation notice. This tells you how much you owe, and the name of the original creditor.
You have 30 days to dispute the validity of this debt. If you don't, the collection agency assumes the debt is valid, and pursues payment.
If you dispute the debt, you must do so in writing. The Consumer Financial Protection Bureau (CFPB) has several sample debt verification letters you can use. This is the place to note any reasons you think you may not owe the debt. For example, if you've already paid it off, or if the amount is incorrect, share this information with the collection agency and provide any documents you have that back up your claim.
Upon receipt of your debt verification letter, the collection agency must pause all collection efforts until it responds. Once it has submitted its response to you, it can contact you again about collecting the debt.
Debt Verification 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 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.
How can I file a complaint against a debt collector?
You can contact the debt collector and ask them to stop, or you can sue them. You can also submit a complaint with the Consumer Financial Protection Bureau, or contact your state’s attorney general.
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