The Fair Debt Collection Practices Act (FDCPA) gives consumers the right to request that a debt be validated which can be requested with a debt validation letter. Debt validation is different from the verification process that can be done through the credit reporting agencies.
A request to verify a debt simple means the credit reporting agency requests that the creditor verify their records for accurate information. A debt validation requires that the collection agency prove the debt is the consumer’s responsibility and that they have the legal right to collect this debt.
Under the FDCPA, consumers have the right to ask for validity of the debt that the collection agency says is owed. Section 809 of the Fair debt Collection Practices Act gives the consumer the right to ask for debt validation to be sure whether you actually owe the debt to the creditor or not. To request the proof, a debt validation letter needs to be sent to challenge the validity of the alleged debt.
The right to request the debt validation applies to collection agencies not the original creditor. When a collection agency is assigned, or has purchased, the debt, they are not the creditor, they are collection agency and their actions are governed by the FDCPA.
The collection agency needs to present documentation proving the consumer does owe the money. Documentation from the collection agency should include items such as; proof that the collection agency has been assigned the debt from the original creditor or that the collection agency actually owns the debt and account statements from the original creditor that verify the credit agreement between the consumer and the original creditor as well as a payment history if the amount owed is in dispute. Generally, a simple list of the services or products sold that resulted in the debt is insufficient evidence to validate a debt.
The collection agency has to stop the process of debt collection until they are able to validate the debt within the first 30 days of notifying someone of the debt. If the debt collector does not verify the debt within 30 days, it is not allowed to continue collecting the debt. If the creditor or collection agency is not able to provide debt validation, they have to remove the item from the credit report.
Of course, the key for the consumer is that so many collection accounts and records are sloppy and inaccurate and therefore they cannot be properly verified. The validation process can definitely help remove collection accounts that are inaccurate and also remove collection accounts that may be valid but cannot be properly supported or validated by the collection agency.
To get the ball rolling, the consumer needs to send a request letter or debt validation letter to the collection agency asking them to validate the debt. The request for debt validation must be submitted in writing. If the debt is properly validated, send the credit reporting agencies a copy of the debt validation letter along with the return receipts to get the account removed from the credit report and ultimately improve the credit score.