“A man in debt is so far a slave.”
-Ralph Waldo Emerson
No matter how hard you try, it’s challenging to outrun debt; therefore, one of the most effective weapons you have under the Federal Fair Debt Collection Practices Act (FDCPA) is the ability to demand that a debt collector verify the amount and validity of the debt it’s trying to collect. Be sure; debt is a predator that follows you around and lurks in the shadows of your life. And when you think you’re out of the woods, a letter from a debt collector you don’t even know arrives in the mail.
However, you should never be duped into making a payment on a debt that is not yours, which is why debt validation is crucial. How does a debt validation benefit you, then? Let’s look at it.
1. What is Debt Validation?
Debt validation (DV) is the process by which a consumer asks an external debt collection agency, otherwise known as a debt collection agency, or an attorney to provide written proof of debt, also known as “verification.” Meanwhile, debt validation may only be used for 30 days after you receive an initial written notice of the right to request verification of debt collection.
- The Right to Debt Validation
You must understand that debt validation is a consumer right, not just a privilege. Part of the consumer’s rights under the Federal Fair Debt Collection Practices Act (FDCPA), outlined in §809 of the act and codified in Title 15, Section 1692-1692p of the United States Code, is the ability to contest the debt and obtain validation. This debt validation process was designed to decrease the likelihood of debt collectors contacting incorrect individuals or seeking to recover debts that have already been paid.
- Award for Violation of Debt Validation
A collection agency (CA) or lawyer is in violation of the Federal Fair Debt Collection Practices Act (FDCPA) if they continue any collection attempts until the debt has been verified. Additionally, you have the right to sue them for statutory damages if they violate the Federal Fair Debt Collection Practices Act (FDCPA) in this fashion. You will be entitled to receive an automatic award of $1,000.00 from the court.
2. What Is a Debt Validation Letter?
A debt validation letter is another document to be familiar with on the subject of debt validation.
It’s a letter the debt collector sends to you as evidence that you owe them money. This letter gives you detailed information about a debt, including what you owe, who you owe it to, and when that person needs it paid, and this is different from debt verification.
3. What Is the Distinction Between Debt Validation and Debt Verification?
- A Debt Validation Letter is a document you receive from a debt collection agency that contains important information about what you owe, who you owe it to, and the next steps.
- A Debt Verification Letter is a letter that you write and send to a debt collector that disputes a debt, that is, if you really don’t owe it or owe as much as the collector says. This letter will be sent by mail and will keep a record of communication with the recipient.
4. What A Debt Validation Does For You
Apart from the important point highlighted above, these are other reasons you should opt for debt validation:
- The debt collection agency may not have the necessary documents to collect the debt formally.
- It’s possible that the debt collector might have lost all the paperwork and falsely accused you of failing to repay the bill.
- You may have previously settled your debts with your original creditors
- It may also mean that the collection agency is simply ignoring the law
5. Do’s And Don’ts of Debt Validation
Do’s
- Be Coordinated, Keep All Documents, and Be Sure to Send Receipts By Registered Mail
After the initial response to the notice within 30 days, the next thing to consider is the document’s preservation. Keeping every document sent to and received from a collection agency is your greatest line of attack or defense in a court of law. Evidence determines whether a case succeeds or fails. For Federal Fair Debt Collection Practices Act (FDCPA) crimes, documentation is critical. Winning is independent of convincing a judge that you are right, and the collection agency is mistaken through a persuasive argument. The only thing left is the evidence. Whether the Federal Fair Debt Collection Practices Act (FDCPA) was broken or not is established by evidence. Letters from or to you, as well as recorded phone calls. Simply make a new folder and place all relevant documents for each collection you are disputing.
When mailing your Debt Validation Letter, be sure to send it through ‘Certified Mail Return Receipt’ (CMRR) at a minimal cost, but the collection agency will definitely receive the letter.
- Mail A Debt Validation (DV) Letter With An Affidavit
It’s a good idea to have someone else send your Debt Validation (DV)letter to the debt collector along with an “Affidavit of Mailing” to further establish as evidence the date and fact that you sent the debt collector a Debt Validation (DV) letter. Your evidence of mailing the debt validation letter will be firmly established by this third-party affidavit that has been signed and attested. Using ‘Certified Mail Return Receipt (CMRR) proves that the Collection Agency (CA)received your letter, but it doesn’t reveal what it said. After all, you might have pretended it was a Debt Validation (DV) letter while sending them a greeting card. Your testimony in the affidavit would be weighed against the collection agency in court, and this could only be done by having a third-party sign and notarize an Affidavit of Mailing.
- Contest The Collection Account With All Three Credit Reporting Agencies
Use the Federal Fair Debt Collection Practices Act (FDCPA)to remove this disparaging piece from your credit report. Please note that a collection agency cannot verify that an item is yours in response to a Credit Reporting Agency (CRA) verification request. If they see that you have this collection, they are violating the Federal Fair Debt Collection Practices Act (FDCPA)because they are trying to collect the claim without first verifying the claim in response to your Debt Validation (DV)letter.
After sending the Debt Validation (DV)letter to a Collection Agency (CA), you must wait approximately five days before sending a letter to the Credit Reporting Agency (CRAs) (Trans Union, Equifax, and Experian) to contest this collection. A Credit Reporting Agency (CRA) is given 30 days to verify with the Collection Agency (CA)that the collection has been correctly reported. If the Collection Agency (CA)does not contact you within this period, the collection will be removed from your credit report. If they confirm it with Collection Agency (CA), it’s a violation on their part, and you can sue them.
- Do Think About Paying Off The Debt If You Can
If you have the money and the Collection Agency (CA)offers a fair settlement reduction, you could want to “settle the debt for less” in order to end this collection issue. Essentially, this is making a smaller-than-agreed-upon payment to settle the obligation in exchange for it being deemed “paid in full.” There are advantages and disadvantages to doing this, and for a thorough explanation of how it functions, you might wish to review the area of our library titled “Debt Settlement.”
Don’ts
- Do not use the word “Cease and Desist” in Debt Validation (DV)letters.
- Do not represent yourself in court.
- Don’t assume that Collection Agency (CA) will stop collecting forever.
- Don’t be Intimidated by Debt Collectors
- Don’t disregard a summons and complaint
Conclusion
As you might guess, debt validation works better with older loans that have already been sold or transferred a few times. A fresh collection is more likely to be validated; it just depends on how much work the Collection Agency (CA)is willing to put into it. Since few people are aware of their rights and Collection Agency (CA)frequently employ individuals who are similarly ignorant of your rights, violations are common. Debt Validation (DV)is often not taken seriously by Collection Agency (CA). Therefore, even if the debt is a recent collection, there is still a good probability that the Collection Agency (CA)won’t bother to authenticate it, breaking the rules, or just laying aside your account to focus on other, simpler accounts to collect.
You basically have nothing to lose by using Debt Validation (DV), regardless of how recent the collection is that you are disputing. In fact, Debt Validation (DV)might be the most efficient way to avoid a lawsuit in the future. It is unquestionably one of the best techniques to stop harassment and collection abuse.
Live long And Abundantly,
The Team at Wealth Advancement Services Group.
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