What is debt validation or DV?

It is a process where you can demand the debt collectors to provide you with adequate proof that the debt in question is actually yours. Under the FDCPA, the burden of proof lies with the collector and not you.

When should you go for debt validation?

You should demand for validation of debt if

• you are not being able to recognize the alleged debt
• you believe that the debt has been actually paid in full
• the debt is past the statute of limitations
• you believe that the company pursuing your money is unauthorized to do so

What is the correct way to ask for debt validation?

Send the collection agency (CA) a written request (DV letter) to validate your debt. The letter must be sent via certified mail (CM) with a Return Receipt Request (RRR).

Remember to save the CM receipt, the RRR green card when it comes back and your USPS receipt (CM # is on it).

Is there any time limit on sending a DV letter to the collection agencies?

Under the FDCPA, you can dispute and send a validation request with in 30 days of receiving your first written notice by the CA.

However, the law also states that if you fail to dispute the validity of a debt with in the 30 day period then it should not be seen by any court as your admission of liability for the alleged debt.

What is the time limit for the CA to respond to your DV letter?

According to the FDCPA, there is no time limit to force them to produce the validation.

Can a CA make collection attempts even if they do not respond to the DV request?

A CA must stop all attempts to collect the debt until they have sent a sufficient response to your validation request.

What does a debt collector need to provide as debt validation?

• Proof that they own the debt legally or have been legally authorized to collect it from you.
• A complete payment history documented from your original creditor. This requirement was established by the case Fields v. Wilber Law Firm, Donald L. Wilber and Kenneth Wilber, USCA-02-C-0072, 7th Circuit Court, Sept 2004.
• A copy of the original loan contract that you signed with your creditor.

What should you do if the collection agency responds in writing but does not provide sufficient proof?

Send them another letter via CMRRR notifying their violation of FDCPA. In the letter, tell them either to immediately stop the collections efforts and alert the credit bureaus or else you will file a lawsuit.

What should you do if you wish to pursue your dispute further even after receiving a response from the agency with proof of the three FDCPA requirements mentioned above?

In this case, you can find out whether they are authorized to collect in your state or not. If they are not, then send another letter via certified mail with a RRR notifying them about the violation of the FDCPA. In the letter also mention your intention to sue them if they do not cease the collections efforts.

Can you ask for validation from the original creditor?

As per the FDCPA, while dealing with the original creditor you do not have the legal right to ask them for validation. In some cases, they might provide you the validation at their own convenience, but under no circumstances they are legally bound to validate the debt.

However, you do have the right under the FCRA to dispute directly with an original creditor regarding any information reported in your credit report that you feel is incorrect, not updated or false.

Is there any difference between verification and validation of debt?

Yes, verification and validation are different. In case of verification, the debt collector is required to send a written statement to the debtor with the name and address of the original creditor and the amount of the debt owed. The verification does not require the collector to provide original documents to the debtor.

Is DV letter same as a cease and desist letter?

No. A cease and desist letter(C&D letter) can be sent to anyone with whom you do not want to communicate. In case of collection agencies, you send a C&D letter to notify them to immediately stop all kind of communications (written as well as telephonic communication) regarding the collection of the debt.