Debt validation is the process of requesting a debt collection agency to prove that you owe them a debt or that it is ‘valid’. This is done when people don’t recognize their debt. If it looks suspicious, debt should always be disputed in an organized and timely manner. In this blog, we’ll offer a closer look at three things you should know about debt validation. Continue reading.
1. The Debt Validation Letter Grants Certain Rights to Consumers
As a consumer, you can request your debt collection agency to prove that your debt is valid. You will be required to send them a debt validation letter.
Once received by the collectors, they must cease all collection efforts immediately. This includes calling you, sending in letters, or reporting the debt.
Until they can validate the debt, they cannot resume collection activity. This is a right that’s granted to you as a consumer.
2. There is a 30-Day Validation Period
You will be requested to send the validation letter within 30 days of being contacted by the collection agency. Make sure you meet this deadline.
If you dispute your debt following the 30-day mark, the collection agency will not be legally required to submit a response to your request for validation. They can also legally continue all debt collection activity.
If you want to retain the rights that have been granted to you by the FDCPA, make sure you submit the debt validation letter on time with no delays. This is imperative.
3. Credit Record Dispute
Let’s say you’ve sent in the debt validation letter. Once the debt collection agency receives your request, they must remove the debt from your credit report until it is validated.
If it still appears on your credit report, make sure you confirm that the agency successfully received the validation letter. Reach out to them using the United States Postal Service website. Moreover, make sure you sent the dispute within the 30-day duration.
If you’ve done everything as expected, and when checking your credit report the debt is still present, this is the debt collection agency’s shortcoming. In this case, you should submit a credit report dispute to the credit bureau. Once processed, the debt will be removed from your credit report, and action will be taken against the collection agency.
Need to learn how to dispute your debt with creditors? At American Debt Enders, we offer a successful debt relief program to help you get a clean credit report and get rid of credit card debt.
We offer free debt counseling and help you become debt-free in between 12 and 36 months. Find out more about our credit restoration services. Once you’re ready, give us a call to get started!