What happens if a debt collector does not validate debt?

This may include notification letters sent to the collection company or response to a legal threat against you. If they ignore you, you can sue them in small claims court for violations of the Fair Debt Collection Practices Act. They must also prove that they are licensed to collect debts in your state.

What does a debt collector need to provide as debt validation?

Verifying a debt Make sure you actually owe the debt. Ask the debt collector for proof (such as documents or account statements) if you think the debt is not yours or if you disagree with the amount demanded.

Do debt collectors have to prove you owe?

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.

What qualifies as debt validation?

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. Junk debt buyers are not in the habit of obtaining, upon a consumer’s debt validation request, documentation directly from the original creditor.

Can you send a debt validation letter to a debt collector?

The letter below is a sample debt validation letter. The Fair Debt Collection Practices Act (FDCPA) gives you the right to request validation and provides you many other protections against debt collectors. For best results, you will need to get familiar with the FDCPA and debt validation if you are not already.

Is there a time limit for validation of debt?

Is there a time limit for validation of debt? 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.

How to prove a debt to a collection agency?

A collection agency or debt collector need only provide the following for proof of the debt: A credit card statement (such as a charge-off statement) that matches the balance claimed by the debt collector.

What happens if you don’t dispute debt validation?

If you don’t dispute the debt (or request validation of the debt) within the 30-day period, the collector has the legal right to assume that you agree the debt is valid. What details do you get with debt validation?

When does a debt collector need to send a debt validation letter?

Within five days of its first communication to you, the debt collector is required to send a written debt validation notice to you. This notice will state your right to dispute the validity of the debt within 30 days. The FDCPA allows the collector to include the debt validation notice in the initial communication if that communication is a letter.

Do you need to use debt validation strategy?

The debt validation strategy can be a useful tool for pushing back against debt collectors. But it needs to be used in the proper circumstance as described above for best results. Debt collectors know that most people are completely in the dark regarding their rights surrounding the topic of debt collection.

How long do you have to dispute debt validation?

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) within the 30-day period, the collector has the legal right to assume that you agree the debt is valid. What details do you get with debt validation?

What happens if a debt collector does not verify the debt?

It is not enough for the collection agency to simply send you a printout of the amount owed. If the debt collector does not verify the debt, it is not allowed to continue collecting the debt from you nor can it sue you or list the debt on your credit report.