Debt validation of collectors

Legal Law

If you have received a debt collection notice that you believe to be in error, you have a legal right to dispute it. With a few simple steps, you can enter debt validation, the process where collectors must verify that you owe the debt. These are the steps you must follow to enter the debt validation process.

You must, in writing, dispute the debt as quickly as possible, but no later than 30 days after receiving notice from a collection agency. The debt validation letter must indicate whether or not you are disputing the full amount of the debt or only a partial amount. You may also request information on the name of the original creditor for whom the collection agency now claims to be collecting. Before you send the letter, be sure to make a copy. When sending the letter, it is important that you send it by certified mail with a return receipt requested. Your acknowledgment is your proof that the collection agency received your letter and within the required time frame.

If you do not send a dispute letter within thirty days, it will be assumed that you are not disputing the debt and are now legally responsible for it. Just as a side note, the collection agency, until they receive your validation request, will likely continue to search you for the debt in question.

Once they have received your letter requesting validation of the debt, they will no longer be able to contact you until they can verify the debt. In order for them to proceed with collections, they must first show you proof of the disputed debt. The proof must come in writing and contain the contract and the statements of the account in question. Statements must show payments and balance due. The collection agency must also show proof that the debt has been given to them to collect.

If the debt collector does not do so within thirty days of receiving the response to your dispute, then you will no longer be able to continue your collection pursuit. It is also not legal for them to report the debt in question to the credit bureaus. If the debt appears on your credit report, you can dispute its removal by sending the credit bureaus copies of your debt validation letter and copies of certified mail, return receipt requested.

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