Receiving any communication from a debt collector can induce immediate stress, especially if you don’t know how to handle it. If you’re in this position, the first thing you need to do is determine if the debt is accurate.
Debt validation is a way for you to require that the creditor prove the debt is legitimate. The Fair Debt Collection Practices Act (FDCPA) requires creditors to provide this, and you have the right to ask for it before you make any payments.
What, exactly, is debt validation?
Debt validation is the process of requesting that a creditor prove that they have the legal right to collect a debt and that it is actually owed. It also determines if the amount of the debt is correct.
When a debt collector contacts you for the first time, they have to send a validation notice, which is a written notice, within five days. This must include the original creditor, the amount and that you have 30 days to dispute the debt.
How do you request debt validation?
You have to send a written request for the debt validation. Typically, you need to do this within 30 days of receiving the collection notice. The collector has to provide the necessary information once they receive this letter. If they can’t provide this, they may have to cease all collection attempts and drop the collection.
Why is debt validation important?
Debt validation helps protect you from errors, outdated accounts or even scams. Inaccurate records, identity theft or debts that were already paid off can mistakenly show up in a collector’s files. Without validation, you might end up paying something you don’t actually owe.
Seeking validation of the debt also gives you time to consider your next steps, whether that means negotiating a payment plan, disputing the debt or consulting a professional about your options. It’s beneficial to work with someone familiar with debt collection so they can assist with the process.