Palisades reported negative report on my credit

When you ask Palisades to validate the account, they must prove their reporting in your credit is legit. Following your debt validation request, they are legally obligated to provide you the info mentioned in the FDCPA.

They must come up with all the details about their reporting in your credit. They should be able to show the account sent by the original company for collections. Be aware of your consumer rights when you are dealing with the collectors. If the collector is reporting inaccurate item, it's tarnishing your credit with wrong purpose.

You do not have to send a validation letter unless they attmept to collect the debt. However you should dispute the inaccurate reporting with the credit bureau AND with the company reporting the information. This puts a legal duty on both to investigate the account to make sure it can legally be reported. Once the investigation is done, you can also request the credit bureau give you a report showing how they did the investigation.