Debt Validation Letter: What It Is and Why You Need It

Collectors should send a debt validation letter if a person has a debt. Before making a payment, you should check for errors. The letter must indicate what the debt is and for what it accrued. If there is any doubt as to the veracity of the letter or the information is incomplete, a request for confirmation of the debt should be sent. The company must provide complete information that will confirm the existence of the debt. In order not to fall victim to a scam, you should carefully check all the data. The letter may be sent incorrectly to the wrong recipient. Unfortunately, no one is safe from mistakes. Did the system fail, due to which the paid debt became active? Also, the letter may come if the debt has been paid in recent days and the company has not yet had time to transfer the amount.

How to determine whether a debt letter is correct

To understand that the debt verification letter is correct, you need to know what a document of the right sample looks like. The message must contain:

  • the amount that the person owed;

  • the name of the person who demands to pay the debt;

  • information that the debt is considered legal if the person does not file a complaint within a month;

  • a statement that if the debt is appealed within one month, the collector must provide the relevant documents;

  • information that if a person applies to the initial collector, he must provide complete information within thirty days.

If there has been no response to the appeal within ten days, it should be resubmitted. It is best to do this when re-contacting the collector. You should also take a mailing address. It is necessary to send a letter confirming the debt.

How to write a letter confirming the debt

Many people do not know how to get collections off the credit report. Often, a debt confirmation letter raises more questions than it answers. It is essential to make and complete the request correctly to get all the necessary information.

If you have never received proof of debt, you should make a request. This document will confirm the existence of the debt if it exists. If there are no problems with creditors, they will send a letter indicating this. 

Debt validation is used in several cases:

  • when communicating with an aggressive collector;

  • if it is possible to contribute to the payment of the debt.

In the first case, the debt collection letter will stop the actions of an aggressive specialist who has already started foreclosure. The document will help delay the recovery of funds or seizure of property. This is a severe argument to experts who do not have complete information. And a natural way out of the situation when you need to remove collections from your credit report. 

There are situations when a person pays debts but still receives a message asking to deposit funds. In this case, the validation of the debt letter will confirm that the money will be deposited in the required amount in the correct account.

Before submitting a request for debt confirmation, you should decide on the questions. The request should specify:

  • Why exactly demand payment of a debt. It is necessary to ask who is the creditor of the first order and to ask for the documents confirming the existence of the debt;

  • amount and age of lending. It is necessary to ask about the amount of debt registration, request copies of payments, and specify the amount and date of the last payment. It should also be clarified whether the terms of the debt are relevant.

  • Powers of the collector. It is essential to find out whether the company has a license to conduct collection activities and whether it has the authority to collect debts.

  • Ask how to get collections removed from the credit report. 

It is best to send a letter by mail. You must also ask for a receipt. This will be documentary proof of communication with collectors.

Many questions can be asked in a debt letter. However, not everyone can answer. Collectors have the right to provide information only about the first owner of the loan, the amount, and the term of the debt. Before resuming recovery, specialists must inform the person about the current state of the debt. 

Obtaining information should be enough to understand the main points. It may become clear that the letter was received by accident due to an error of the sender. There are situations when trying to collect debt in which the statute of limitations has expired. You should also check the accuracy of the amount. Sometimes, payments may not be erroneously charged, leading to an increase in debt.

To stop the recovery, a letter of debt should be sent within 30 days. Upon receipt of the document, creditors must discontinue any foreclosure. They will be able to return to business only after it is confirmed that the debt is yours. 

If the collector refuses to provide information, you should contact the Consumer Protection Bureau. The specialist will tell you how to dispute a collection on the credit report. Refusal or ignoring the letter of debt — is a violation of the rules of recovery.