Debt Validation Letter: Definition And How It Works
Explaining What A Debt Validation Letter Is, And How It Process Works
Therefore, a debt validation letter is a specific kind of letter used by a customer to reply to a specific debt collection by a creditor or collector. Sending this form of letter forces the creditor or collector to verify or affirm that the customer owes the specified amount.
Any collector under the Fair Debt Collection Practices Act FDCPA is required to provide proof that you do owe the amount they are trying to recover. This important consumer safeguard stops debt collectors from trying to collect on a debt that was never owed or a liability that is beyond the statute of limitations.
Should a debt collector visit you for collection, he must abide by the FDCPA Should you fail in your part, you are entitled to ask the collector to confirm the debt in writing thirty days from the day he notified you of it. This letter tells them you will not pay until they stop all their collection activities and provide you with a postmarked piece of documentation proving your debt.
What a Debt Validation Letter Does?
When you send a properly formatted debt validation letter, it puts the collector or the creditor on notice to cease all collection activities immediately and furnish you with proof and verification of the following.
- They also have the legal right to collect the debt
- The exact sum of money you owe
- A statement of particulars concerning the debt which includes dates, interest rates, fees, etc
- Confirmation that you are indeed a party to this obligation and you are to pay this debt.
In other words, a debt validation letter simply means that you do not agree that you owe the debt or part of it until the collector proves otherwise. This shifts the burden of proof back onto the collector to explain why their collection efforts are valid and legal.
If the collector cannot adequately verify the validity of such information, the collection process must stop. If verification is provided but you still believe that the debt is not legitimate, you then may seek advice from a lawyer on your rights.
Elements to Include in a Debt Validation Letter
For your rights for debt verification to begin, your validation letter should contain particular details that are as follows. The letter must include.
Your complete name and contact details, account numbers that have something to do with the debt. This makes it clear who you are as well as which debt is being referred to.
A statement that you disagree with the fact that the debt exists or that you should pay it in full. This places them on official notice.
A demand that they stop making any further attempts at collections until a proper validation of the account can be made.
A demand that they give them full documentation and certification of all the details of the debt within one month.
Details of exactly what proof you expect.
- Their legal right to levy
- It should be noted that a detailed disclosure needs to be made of any interest, fees or charges to be levied.
- Any date that is associated with the debt and past charges that have been made
- Your original signatures for the debt
A statement that if they can’t confirm the debt in some way, they have to stop collections for good.
A statement that if you do not produce the requested proof within 30 days, the debt will be deemed to be non-existent and collection cannot continue.
Your details and the details of the debt collector.
How to Seek Legal Assistance for the Process of Debt Validation?
Even if attempting to handle debt collectors who are calling you frequently can be frustrating, intimidating, and stressful. It is advisable to have your case go through the scrutiny of an experienced consumer protection attorney.
Although you can write the first debt validation letter on your own, having professionals do it enhances your rights under state and federal consumer laws. And if and when it comes down to another round of legal proceedings, a legal professional with expertise in consumer debt protection will become a great asset.
That is why you should not allow unlawful collection practices or coercion to force you to pay a debt that cannot be proved. Understand your consumer rights and insist on proper legal validation of debts from both creditors and collectors.
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