should i send a debt validation letter when i'm contacted by a debt collection lawyer?

Among the rules laid out by the FDCPA is one that stipulates that debt collectors must send you a debt validation letter within five days of first contact (if they don’t, request one the next time they contact you). The debt validation letter must include at least the following information: The amount of debt owed

Full Answer

Should I send a debt validation letter to a collection agency?

If you know that the debt belongs to you and you really owe that money, there’s really no point in sending a debt validation letter. Instead, you should try and arrange something with the collection agency. At the end of the day, if you can’t pay it on your own, you can look into other options like debt settlement.

How long do I have to respond to a debt validation letter?

Two, within 30 days of receiving this info, you must respond with a Debt Validation Letter disputing the debt and requesting the debt collector provide validation of the debt, among other things. If you don't send this letter, the debt collector will assume the debt is valid, and you'll miss a major opportunity.

Will sending a debt validation letter affect my credit report?

So if sending a debt validation letter is part of your strategy to clean up your credit report, please know that it is possible that your credit report could be negatively impacted in the future if the account remains unresolved and is validated in the future, provided it's still within the 7-year reporting period.

When do debt collectors have to send you a letter?

Under the Fair Debt Collection Practices Act (FDCPA), they must send you a letter within five days of first contact, notifying you of your debt validation rights. First contact refers to the first time a debt collector reaches out to you about a specific debt, whether that’s by phone or mail. What a Debt Validation Letter Reports

When should I send a debt validation letter?

Within five days of first contacting you, debt collectors are required to send you a debt validation letter if they haven't already provided the information verbally. A debt validation letter should include the name of your creditor, how much you supposedly owe, and information on how to dispute the debt.

Does a debt validation letter work?

Do Debt Validation Letters really work? Yes, they do. When a debt collector receives a Debt Validation Letter, they are legally required to provide validation of the debt. Debt Validation Letter's work best when they include a cease and desist clause that forces a lawsuit.

What if I never received a debt validation letter?

If you don't receive a validation notice within 10 days of the first contact, request one from the debt collector the next time you're contacted. Ask for the debt collector's mailing address at this time as well, in case you decide to request a debt verification letter.

What is a validation notice from a debt collector?

The validation notice is meant to help you recognize whether the debt is yours and dispute the debt if it is not yours. The notice generally must include: A statement that the communication is from a debt collector. The name and mailing information of the debt collector and the consumer.

Is debt validation a good idea?

Debt validation can be extremely effective. If the debt collector is unable to validate your debt, you can request for the debt to be removed. Without validation, your credit report could be filled with multiple debts that don't belong to you.

How do I respond to a collection letter from a lawyer?

Four Steps to Take if You Received a Debt Collection Letter From a LawyerCarefully Review the Letter to Determine the Claim. ... Consider Sending a Debt Validation Request. ... Gather and Organize All Relevant Financial Documents and Records. ... Be Proactive: Debt Does Not Go Away on its Own.

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.

How long does a collection agency have to respond to a debt validation letter?

30 daysHow long does a debt collector have to validate a debt, anyway? Unfortunately, a debt collection agency can take as long as they want to respond to your request to validate an existing debt. I would say, generally, the usual range is between 1–30 days or they never respond.

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.

What must be included in a validation notice?

§ 1006.34 Notice for validation of debts.Deceased consumers. ... Bankruptcy proofs of claim. ... In general. ... Subsequent debt collectors. ... Last statement date. ... Last payment date. ... Transaction date. ... Assumed receipt of validation information.More items...

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.

How do I request a validation letter for a debt?

Under the Fair Debt collection Practices Act (FDCPA), I have the right to request validation of the debt you say I owe you. I am requesting proof that I am indeed the party you are asking to pay this debt, and there is some contractual obligation that is binding on me to pay this debt.

What is debt validation letter?

The debt validation letter includes: The amount owed. The name of the creditor seeking payment. 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 ...

How long does it take for a debt validation letter to be sent?

It must be sent within five days of the first contact. The debt validation letter includes: The amount owed. The name of the creditor seeking payment.

How long does it take for a debt collector to provide a statement?

A statement that if you request information about the original creditor within 30 days, the collector must provide it. If you don’t receive a validation notice within 10 days of the first contact, request one from the debt collector the next time you’re contacted. Ask for the debt collector’s mailing address at this time as well, ...

What to do if you are uncertain about debt?

If you’re still uncertain about the debt you’re being asked to pay, you can send the debt collector a debt verification letter requesting more information. This option is best if you plan to pay the debt in collections. These two letters are important because errors in debt collection are common.

What do you need to know before paying a dime?

Before you pay a dime to a debt collector, confirm that the debt belongs to you. Debt collectors are legally required to send you a debt validation letter, which outlines what the debt is, how much you owe and other information. If you’re still uncertain about the debt you’re being asked to pay, you can send the debt collector a debt verification ...

What is a debt validation letter?

This information generally entails sending a debt validation request on your "valid" debts prior to communicating with the debt collector who is attempting to collect from you.

How long does it take to collect 20% of debt?

In fact, just to put the 80% figure into perspective: it takes a full 7 years to collect the 20%. Which means, on a monthly basis, debt collectors only collect between less than one percent to a few percent of the debt that they are servicing.

How long does it take for a collection agency to clean up your credit report?

If your accounts have exceeded the statute of limitations and you're trying to clean up your credit report, a debt validation letter may provide you some value in attempting to achieve your goal if the collection agency has possessed the account for less than 30-35 days.

What is a copy of a signed contract?

A copy of the signed contract or other documents that provide evidence of the relevant consumer’s liability for the debt in question. Copies of all, or the last 12 (whichever is fewer), account statements. All account numbers used by the bank (and, if appropriate, its predecessors) to identify the debt at issue.

How many people never answer their phone in collections?

Meaning that approximately 6 out of 10 consumers who are in collections never answer their phone.

Can a debt validation letter be negative?

So if sending a debt validation letter is part of your strategy to clean up your credit report, please know that it is possible that your credit report could be negatively impacted in the future if the account remains unresolved and is validated in the future, provided it's still within the 7-year reporting period.

Is a debt validation letter counterproductive?

If anything, a debt validation letter could be counterproductive in this situation since it could lead you to a communication that could possibly renew the statute of limitations. In some states acknowledging the debt will restart your clock.

Consumer Debt Collection Protections

It may seem unlikely that a simple letter can be part of an effective approach to dealing with misguided debt collection efforts. But it’s real. The mechanism is set up by the Fair Debt Collection Practices Act (FDCPA), a 1977 law Congress passed to rein in debt collectors.

Verification Letter Basics

Both the letter you send to a debt collector and the letter the collector sends back may be called either debt verification letters or debt validation letters. There is no strict labeling protocol. However, it seems confusing to use the terms interchangeably.

Validation Letter Basics

The validation letter is the one from the debt collector back to you, the supposed debtor. It is supposed to support its claim with some sort of proof. The FDCPA is a bit vague here, but supporting documentation could consist of, for instance, a copy of a court judgment affirming the debt.

Validation and Verification Letter Limitations and Benefits

Validation and verification letters can be helpful but won’t solve all debt collection problems. For example, a collector can continue trying to collect a debt that is past the statute of limitations. They just can’t force you to pay it.

Your Rights as a Debtor

Debt verification and validation letters are two of many FDCPA protections. Collectors are also restricted from calling before 8 a.m. or after 9 p.m. local time, contacting you at work if you tell them not to, telling anybody else about your debt, harassing you or lying about what you owe.

What is debt validation?

Debt validation is your federal right granted under the Fair Debt Collection Practices Act (FDCPA).

How to check if a debt is valid?

The collector's debt validation notice to you should be made in writing. It should include the following: 1 Amount of the debt 2 The name of the creditor 3 The assumption that the debt will be valid unless you dispute it within 30 days 4 Notification that you can request verification of the debt within 30 days 5 Notification that you can request the name and address of the original creditor within 30 days 2 

How long does it take for a debt collector to notify you of your debt?

The debt collector must also notify you, in writing, of your debt validation rights within five days of its initial communication to you. 2 .

How much can you sue a debt collector for?

If you can prove the debt collector has violated your rights under the FDCPA, you can sue in federal or state court for up to $1,000, including damages. 5 You should also report violations to the Federal Trade Commission (FTC).

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

The assumption that the debt will be valid unless you dispute it within 30 days. Notification that you can request verification of the debt within 30 days. Notification that you can request the name and address of the original creditor within 30 days 2 .

Can you send a notice of debt validation?

You may have even missed it. In any case, you can send your request for debt validation regardless of receiving the debt validation notice from the debt collector.

Can I dispute a debt after the validation period?

Can I dispute the debt after the validation period? Technically, you can send a debt validation letter after the 30-day validation period. However, the debt collector isn't legally required to respond to your validation request. Nor does the collector have to stop collection activity on the account.

What happens if a debt collector doesn't respond to a request for a debt validation letter?

Under the FDCPA, a debt collector must respond to a request for a debt validation letter. If they don’t, they’re in violation of the act. You can report them to your state’s attorney general, the FTC or the Consumer Financial Protection Bureau (CFPB). You can also sue for up to $1,000, plus damages. 3.

What happens if a debt collector can't verify your debt?

The Collector’s Response. If a debt collector can’t verify your debt, then they can’t continue to go after you for it. They must also notify credit bureaus to have the debts removed from your credit report. Be sure to follow up and make sure this is done.

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

You have within 30 days from receiving a debt validation letter to send a debt verification letter. This is important: You have just 30 days to respond to a debt validation letter. If you don’t dispute the debt within 30 days, the debt is assumed valid. That means the debt collector can continue to contact you.

What happens after a debt collector receives a debt verification request?

After a debt collector receives your debt verification request, they must stop communication with you until they have responded to your request . No phone calls, no letters and no reporting your debt to the credit bureaus. But there’s more you can do during this time.

How long does it take for a debt collector to send you a letter?

Under the Fair Debt Collection Practices Act (FDCPA), they must send you a letter within five days of first contact, notifying you of your debt validation rights.

How long can a debt collector contact you?

That means the debt collector can continue to contact you. You can send a dispute after 30 days. But at that point, the debt is considered valid and a debt collector is still legally allowed to continue contacting you. Your debt verification letter should request the debt collector provide you with the following:

How many complaints about debt collectors in 2019?

Talk to a Financial Coach today! Chew on this surprising fact: In 2019, the Federal Trade Commission (FTC) received 75,200 complaints from consumers about debt collectors. 1 A whopping 45% of those complaints were to report attempts to collect debt not owed. 2 That’s definitely not OK. Your “debt” may not even be real.

What Is a Debt Validation Letter?

The Fair Debt Collection Practices Act requires any debt collector to provide you with this type of letter. It describes how much money is owed, how the debt was established, and other information.

Why Do I Need Such a Letter?

Unfortunately, errors frequently occur in the debt-collection world. There have been many cases in which someone paid a debt without realizing the debt was:

When Should I Expect the Letter?

If you haven't received the debt validation letter within ten days of your first contact with the debt collector, request one the next time the collector contacts you. Request the debt collector's mailing address, too – you will need it if you later decide to request a debt verification letter.

Is There an Easier Way to Accomplish This?

Writing and sending a debt validation letter request to an attorney can be a detailed process that consumes much of your quality time. An effective alternative is DoNotPay. Our product can simplify the entire process, and you will find it to be:

What is a Debt Validation Letter?

A debt validation letter is nothing more than a letter that is sent to consumers to verify an existing debt by providing evidence of the claim.

How Does a Debt Validation Letter Work?

When you receive a letter that’s attempting to collect a debt that you do not believe is yours, you should challenge it with a debt validation letter within 30 days.

Why Should You Request a Debt Validation Letter?

If you receive a letter in the mail that you owe a debt, you might just go ahead and pay it without really looking into it too much more. But, the reality is that there are some cases where requesting a debt validation letter might be more advantageous for you.

When Not To Request A Debt Validation Letter

If you know that the debt belongs to you and you really owe that money, there’s really no point in sending a debt validation letter. Instead, you should try and arrange something with the collection agency.

What to Ask in a Debt Validation Letter?

When requesting a debt validation letter, you should make sure to add in enough questions that’ll help you determine if this debt is yours or not.

Sample Debt Validation Letter

I, ________________, received information regarding a debt that is being claimed against me. Be advised that this is not a refusal to pay, but a notice that your claim is disputed and validation is requested. In accordance to my rights with 15 US Code 1692g Sec.

How Long does a Debt Collector have to Validate a Debt?

Once you send the letter, the debt collectors don’t have a specific timeline to respond in.

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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How long does a debt collector have to send a validation notice?

In addition to the “validation notice” that debt collectors must send, there is a “statute of limitations” on most debts. The statute of limitations varies from state-to-state, from as little as three years to as many as 15. Most states fall in the range of 4-to-6 years.

How to pay a debt collector?

Should I Pay Debt Collectors or Original Creditor? 1 A creditor may have an in-house collection division. In this case, you are still in debt to the original creditor and that is who gets paid. 2 Sometimes the creditor will hire a collection agency to chase the money for them. Ask the debt collector if they own the debt. If not, you still might be able to negotiate with the original creditor. 3 Often the last straw, the original creditor might sell the debt to a collection agency. In this case, the debt collector owns the debt, so any payment is made to the collection agency.

How many people have been contacted by debt collectors in the past year?

According to the Consumer Financial Protection Bureau (CFPB), one in three consumers – more than 70 million people – were contacted by a creditor or debt collector in the past year. The CFPB says that 250,000 debt collection complaints have been filed since 2011, about 88,000 of them in 2016 alone.

What should a debt dispute letter include?

The debt dispute letter should include your personal identifying information; verification of the amount of debt owed; the name of the creditor for the debt; and a request that the debt not be reported to credit reporting agencies until the matter is resolved or have it removed from the report, if it already has been reported.

What to do if you doubt a debt?

If you doubt that you owe a debt, or that the amount owed is not accurate, your best recourse is to send a debt dispute letter to the collection agency asking that the debt be validated.

How to stop a collection call?

You can stop calls from collection agencies by sending a certified letter asking them to stop calling. Debt collectors must send you a written “validation notice” that states how much money you owe, the name of the creditor and how to proceed if you want to dispute the debt.

How long does unpaid debt stay on your credit report?

However, the unpaid debt remains on your credit report for seven years from the last time you made a payment on it. Many of the problems start with the fact that debt collection agencies often buy debts from several sources and either collect the money or sell the debt a second, third, maybe even fourth time.