if a collection agency lawyer validate a debt what is my next move

What happens after debt validation letter?

A debt validation letter should include the name of your creditor, how much you supposedly owe, and information on how to dispute the debt. After receiving a debt validation letter, you have 30 days to dispute the debt and request written evidence of it from the debt collector.

How does debt validation work?

Debt validation is every person's right to force the debt collector to prove that a debt is owed. Requesting debt validation requires that a written request is sent to the debt collector before the end of 30 days after being contacted by the collection agency.

How long does the validation period last?

(5) Validation period means the period starting on the date that a debt collector provides the validation information required by paragraph (c) of this section and ending 30 days after the consumer receives or is assumed to receive the validation information.

What is considered validation of debt?

According to the above FDCPA Section, Debt Validation is defined as the debt collector contacting the original creditor to affirm the debt amount being requested is correct. It is highly doubtful the debt collector ever contacts the original creditor for any debt validation purposes.

How do I respond to a debt validation letter?

A debt verification letter doesn't have to say anything fancy. Just state that you're responding to a collection effort, you don't recognize the debt, you are demanding they prove you owe it and, if they can't, to stop contacting you. That's it.

What's the difference between debt verification and validation?

While a debt validation letter provides information about the debt the collection agency claims you owe, a verification letter must prove it. In other words, if the collection agency doesn't have enough evidence to prove you owe it, their hands may be tied.

How do collection agencies validate debt?

A statement that the debt is assumed valid by the collector unless you dispute it within 30 days of the first contact. A statement that if you write to dispute the debt or request more information within 30 days, the debt collector will verify the debt by mail.

What happens if a debt collector does not validate debt in 30 days?

What Happens Now? If a debt collector can't verify your debt, then they must stop contacting you about it. And they have to let credit bureaus know so they can remove the debt from your credit report.

What happens if you don't respond to a debt collector?

Ignoring or avoiding the debt collector may cause the debt collector to use other methods to try to collect the debt, including a lawsuit against you. If you are unable to come to an agreement with a debt collector, you may want to contact an attorney who can provide you with legal advice about your situation.

Do creditors have to prove a debt?

Does a Debt Collector Have to Show Proof of a Debt? Yes, debt collectors do have to show proof of a debt if you ask them. Make sure you understand your rights under credit collection laws.

How can I get a collection removed without paying?

There are 3 ways to remove collections without paying: 1) Write and mail a Goodwill letter asking for forgiveness, 2) study the FCRA and FDCPA and craft dispute letters to challenge the collection, and 3) Have a collections removal expert delete it for you.

Can you dispute a debt if it was sold to a collection agency?

Within 30 days of receiving the written notice of debt, send a written dispute to the debt collection agency. You can use this sample dispute letter (PDF) as a model. Once you dispute the debt, the debt collector must stop all debt collection activities until it sends you verification of the debt.

How long does it take to dispute a DV?

You have 30 days to dispute it, which you did. They can take as long as they want to send you back a DV as long as they don't contact you to collect on it before they do.

How to dispute a tradeline?

You have to seek BK protection for the exemption to apply. My advice, dispute it through the credit reporting agencies as prescribed above. Be specific in disputing the dates of last activity, status, account history and any fields which are incomplete. They will verify everything probably and they will likely not mark the tradeline as being in dispute. Thereafter, get an attorney and sue them in whatever Federal District Court has jurisdiction. You will need to pay an attorney to do this because it is very unlikely Target will negate the debt and pay anything on top of it. However, they can't sue on the underlying debt in Federal Court and typically, they are willing to negate the debt and delete their tradeline if you will dismiss the lawsuit.

Is Target a junk debt buyer?

Target is the original creditor, not a junk debt buyer. The law offices that sent you the letter is probably the one collecting for them. No I am not saying you want to be sued, none of us want to be sued. There is not a whole lot you can do if you do not make a deal with them, the worst thing that can happen is they will sue you, and you will come post here, we will tell you what we would do (procedural steps to take) to try and win. Original creditor cases are harder to win, but it has been done. Worst case senerio is they will get a judgement against you, and then they will have to try and enforce it. If you have no job, no assets, then they will have a judgement they can't collect on.

Is Target collecting for National Bank?

Yes, they are collecting for Target National Bank. So, now just wait to get sued? Hopefully not.

Can you dispute a debt with the CRA?

Disputing it with the CRA's could come in handy if they sue you for account stated, you can prove you disputed it, takes out the argument that you did not dispute. You would need to write a letter to the CRA"s disputing that debt. Don't do it online, write them, it makes it so a person has to verify it, and not the click of a computer mouse. Good luck.

What to do if you hear nothing from a debt collector?

If you hear nothing from them, then you should send them a copy of the receipt, the debt validation letter, and another letter stating that in accordance with the Fair Debt Collection Practices Act (FDCPA), you will not pay the debt.

What happens after a debt validation letter is received?

Once your debt validation letter is received, the debt collector must stop all collection activity, including reporting and verifying, until they supply proper validation of the debt. Although no time limit is specified for them to validate, they cannot continue collecting until they provide such information.

What does the FDCPA do?

For these reasons, the FDCPA entitles you as a consumer to validate a debt when a debt collector demands money from you.

What happens if you fail to validate all of these points?

If you fail to validate all of these points, you risk paying a debt you don’t actually owe or even paying someone who shouldn’t be taking your money. It’s a safe way for any consumer to protect themselves from countless scammers and unscrupulous debt collection agencies.

What is debt validation 2021?

This means a consumer can demand that a creditor reporting information to the credit bureaus prove the account is really your responsibility and that the balances are accurate. Also, a debt collector must also prove they have a legal right to collect the debt.

Why do you ask for debt validation?

First, you’ll know that the debt collector is legally authorized by the original creditor to collect money from you.

How long does it take to get a debt validation letter?

Within 30 days of learning about the debt, send a debt validation letter via certified mail to the collection agency. Sending it certified is very important as it gives you have proof of your request. You should also keep a copy of the letter on file.

What happens if a collection agency doesn't validate your debt?

A statement that the CA has violated the FDCPA. Under the FDCPA, if the collection agency doesn't validate your debt, then they can no longer collect the payment and they are required to stop contacting you.

What to do if a debt collector is not licensed?

If the collector needs a license to collect debt in your state and they aren't licensed, send them a letter notifying they are violating your state's collection law. You should also inform them that if they continue to attempt collection, they may be facing a law suit and pay fines to your state.

What happens if the CRA refuses to validate a debt?

If the CRA validates the debt, you should send them proof that the CA has refused to respond to your attempts to validate the debt, and therefore is violating the FDCPA. If the CRA refuses to send you the validation information they have received from the CA, you should include them in your suit against the CA for violation of the FDCPA.

How long does it take to get a debt validation notice?

Under the FDCPA, debt collectors (collection agencies or CAs) are required to send you a debt validation notice within 5 days of contacting you to collect a debt. The notice informs you that you have the right to validate/dispute the debt within 30 days of receiving the letter. If you don't dispute the debt (or request validation of the debt) ...

What is debt validation?

Debt validation is where you try to find out whether the collection agency (CA) has the legal right to collect on the debt by asking them to provide you with proof. The FDCPA gives you the right to seek validation from a collection agency and not the original creditor.

How long does it take for a debt to be verified?

Under the FDCPA, CAs must stop collection activities as soon as they receive your request for validation or verification within the 30-day period.

What does it mean when a debt is assigned to a CA?

Sometimes if a debt has been assigned to a CA, it means they have purchased the account from the original creditor and sometimes it means that the creditor has hired the CA to collect the debt for them.

Debt collectors don't have a deadline to respond to a debt validation letter

The Fair Debt Collection Practices Act (FDCPA) actually gives the collector this power to keep the debtor in a state of uncertainty until the statute of limitations runs. It can be hard for you to know whether the collection agency failed to validate the debt or if the proof is on its way to you in the mail right now.

How long does a debt collector have to validate a debt?

When you send a debt dispute letter to a creditor, the debt validation period might last for weeks, months, or longer. Since the FDCPA doesn't mandate when creditors must respond, the only date that may concern them is when the statute of limitations runs out on the debt.

What if the debt collector doesn't respond to a Debt Validation Letter?

Failing to respond to a Debt Validation Letter while continuing to collect on the debt is a direct violation of the FDCPA. You can report a debt collector's failure to respond to your state's attorney general, the Consumer Financial Protection Bureau (CFPB), or the FTC.

What if the collection agency fails to validate the debt?

If you've requested a debt validation from a debt collector, you can rest assured knowing that most debt collectors simply give up at this stage in the process. Since most collection agencies purchase old debts for pennies to the dollar, it may not be worth it for them to spend the time and resources required to validate a debt and file a lawsuit.

What if the collector sues for the debt?

The first step to responding to a debt lawsuit is filing an Answer with the court and sending a copy of it to the opposing attorney. You have 14-30 days to respond to the summons and complaint, depending on which state you live in.

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Matthew Scott Berkus

What a creditor must do to validate a debt is actually a fairly low bar. Generally, if the collection agency identifies the original creditor and the amount owed, that is enough. Verification of debt is not defined in the FDCPA. Basically, the validation must be...

Rachel Lea Hunter

I don't know what exactly you said in your dispute letter, but assuming you requested proper validation of the debt which they refused, there is no law that says they have to respond. However, the Fair Debt Collection Practices Act precludes them from taking further action to collect the debt if the collection agency/creditor refuses to validate.

What is a Debt Validation Letter?

A debt validation letter is to prove the debt belongs to you. It should describe the debt, how it originated, what the amount is as well as any other important information. If a debt collects begins contacting you to collect a debt, you send request a validation letter before paying the debt.

Get Help From an FDCPA Lawyer

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What happens if a family member contacts you to collect a debt?

If they indeed contacted your family members in an attempt to collect a debt, they violated the FDCPA. Also, you can request the method of verification that the credit bureaus used as well. I would re-dispute with the CRA's and also open a dispute with the CFPB as well. If you asked for debt validation within the 1st 30 days of receiving notice of the collection attempt, that collection agency cannot legally report the collection until they have validated the debt per the FDCPA.

What is the purpose of DV process?

The intent of the DV process, as stated in the legislative history of FDCPA 809, is to provide a reprieve to consumers of active collection activities until the consumer is first provided validation of the debt. It thus mposes a cease collection bar on the debt collector provided the DV request is sent within 30 days of any prior dunning notice, and the cease collection bar remains in effect until such time as the debt collector chooses to provide verification of the debt.

How much can you sue for a call?

You can sue for statutory damages of $1000 per call (so that's at least $2000) plus attorney's fees.

Is there a violation of FDCPA?

Additionally, there may be an FDCPA violation in a sense that the CA communicated with a third partywho is not your attorney in reference to your alleged debt.

Can a CRA dispute be dismissed?

A dispute to the CRA based on lack of receipt of verification in response to a DV request can thus be dismissed by a CRA as lacking any showing of any inaccuracy in reporting.