Debt Validation Letter (VOD): A Letter That Works

Debt validation is one of the most effective credit repair strategies because, in many cases, collection agencies aren’t able to collect from you. And if you’re serious about fixing your credit the right way, debt validation is a good starting point—it will help you to correct inaccurate or incomplete information on your credit report and it will help you remove the unverifiable items that are hurting your credit score. And in many cases is much more powerful than a standard dispute letter

If you have collection accounts but you’re not sure if debt validation is an option for you, ask yourself the following questions:

• Does the debt belong to you?
• Is the amount of the debt accurate?
• Are there any mistakes concerning your interest rates?
• Is your payment history accurate?
• IS the collection agency legally responsible for collecting?

If you feel that the credit bureau is reporting inaccurately, you have the right to have their information validated . This is the first step to take if you want to fix your credit the right way.

Collection agencies follow the standards set by the Fair Debt Collection Practices Act (FDCPA). Under the FDCPA, consumers are given the right to have their debts validated. This means that collection agencies must provide detailed proof of the accuracy of your debt, along with proof that they are entitled to collect from you.

Here’s what the FDCPA says about the validation of debts:

FDCPA Section 809. Validation of Debts [15 USC 1692g]
(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.

If the collection agency is unable to verify the debt:

a) They are not allowed to collect from you
b) They are not allowed to contact you about the debt
c) They are not allowed to report the debt to the credit bureau

If a collection agency breaks any of these rules they are in violation of the FDCPA and you can sue them for non-compliance. If the collection agency attempts to seek a court judgment from you without validating your debt, they are, again, in violation of the FDCPA.

How to Validate Your Debt
1) Determine if your debt is past the statute of limitations in your state. If it is, write the collection agency informing them that they’re trying to collect a debt that you don’t have to pay since it’s past the statute of limitations. If they still won’t remove it, you may just have to file a lawsuit.

2) If your debt is not past the statute of limitations, send a letter requesting validation. They usually have about 30 days to respond. In order for the debt to be validated, they must provide you with:

• Proof that the collection agency has been assigned the debt in question
• Copies of any statements from the original creditor
• A copy of the original contract

If they can’t provide this validating information, they aren’t allowed to collect from you or report the debt to the credit bureau. If the debt remains on your credit report, send the collection agency a copy of your original validation letter along with the certified mail receipt (validation letters should be sent via certified mail) and warn that they have failed to comply with the FDCPA and you intend to file a lawsuit if the debt is not removed from your credit report.

Most of the time collection agencies will respond, but if they are unable provide the validating information you’ve requested, they’ll send you a letter informing you that the item is being removed from your credit report. Then you simply send copies of that letter to the credit bureaus and ask them to stop reporting that particular information.

Debt Validation is intended to dispute debts that you feel are inaccurate for some reason or another. It is not meant to provide an easy way to eliminate debt. You should never attempt to have accurate debts validated. Doing so can cause you more problems and can even get you sued in court. If your debts are accurate there are better ways to resolve them, such as debt settlement.

But if your credit report information is inaccurate, incomplete, or unverifiable, debt validation may be the answer to many of your credit problems.