Are collection agencies harassing you with repeated calls? Are you sure they're legally entitled to collect the debt? Before you make a payment, try finding out if the agencies have the right to collect your debt. This is where debt validation can help you. Check out the topics given below if you want to know what debt validation is all about.
What is validation of debt?
Is there a time limit for validation of debt?
Under the FDCPA, debt collectors (collection agencies or CAs) are required to send you a debt validation notice within 5 days of contacting you to collect a debt. The notice informs you that you have the right to validate/dispute the debt within 30 days of receiving the letter. If you don't dispute the debt (or request validation of the debt) within the 30-day period, the collector has the legal right to assume that you agree the debt is valid.
What details do you get with debt validation?
When you try to validate a debt, the collection agency must provide you with certain details. They are:
Proof that the CA holds your debt
Your payment history
Copy of your original contract
What are the steps in validation of debt?
Check out these 7 steps to validate your debt and deal with collectors and credit reporting agencies (CRAs).
Request a validation:
Check if the CA is licensed:
What if the CA violates collection laws:
What to do if the CA doesn't validate debt:
- A copy of your validation letter
- Copy of the return receipt
- A statement that the CA has violated the FDCPA
Under the FDCPA, if the collection agency doesn't validate your debt, then they can no longer collect the payment and they are required to stop contacting you.
Sue the collector if listing isn't removed:
Remove collection listing:
Know how to deal with the CRAs:
Can you dispute the debt after the validation period?
You can send in a validation letter to your CA after the 30-day period, but the collectors aren't legally obligated to reply or stop collection efforts. So, you shouldn't dispute debt after the validation period has expired.
Debt assigned to CA - how does it affect validation?
If your debt is assigned to a CA, they may not be the legal owner of the debt. Sometimes if a debt has been assigned to a CA, it means they have purchased the account from the original creditor and sometimes it means that the creditor has hired the CA to collect the debt for them. When you validate the debt, you should find out how the CA and the original creditor are connected and who has the power to agree to a settlement or payment plan.
How do validation and debt verification differ?
If they validate the debt, the collector is required to send a copy of your agreement with the original creditor. If you are trying debt verification, the collector only needs to provide you with a written statement with the name and address of the original creditor and the total amount you owe. The time you have to verify a debt is similar to the time you have to validate the debt.
With debt validation, you can avoid harassment by collection agencies by verifying whether you legally owe the money. Once the CA verifies your debt, it is easier for you to plan how to pay back the money you owe. Always be sure you know and enforce your rights if the CA refuses to validate or verify the debt.