If a debt collector calls, you have a right to information through a debt validation letter
A debt validation letter is a letter that debt collectors must provide that includes information about the size of your debt, when to pay it, and how to dispute it. A debt validation letter essentially proves you owe the debt collector money.
- 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.
- With a debt validation letter, request details on the following: why the debt collector believes you’re responsible for the debt, how old the debt is, and whether the agency is licensed to collect it.
- If you believe that you don’t owe the debt described in the debt validation letter, it’s important to know that you have options that we’ll share below.
In today’s world, many individuals find themselves burdened with overwhelming debt, causing immense stress and anxiety. If you’re in this situation, you’re not alone.
However, when you’re seeking debt relief, there is a powerful, yet little-known tool that can help you challenge and potentially eliminate your debt – a debt validation letter.
Below, we’ll cover the ins and outs of debt validation letters, their importance, and how they can assist you on your journey to becoming debt-free.
Understanding Debt Validation Letters
Debt validation letters are formal written requests sent to creditors or debt collection agencies, particularly when seeking debt relief.
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.
Their purpose is to seek validation and verification of the debt that they claim you owe. A debt validation letter should include the name of your creditor and how much you owe. The letter should also include information about when you need to pay the debt and how to dispute it.
After you receive a debt validation letter, you have 30 days to dispute the debt and request written evidence of it from the debt collector. But if you don’t dispute it within 30 days of being contacted, the debt collector can assume the debt is valid.
However, if you do dispute the debt in writing, then the debt collector must provide written evidence of the debt.
Debt validation letters can be a game-changer in your debt relief journey, as they enable you to take control of your financial situation and challenge the validity of a debt.
Why Debt Validation Letters Matter
There are two important reasons why debt validation letters matter, and why you should strongly consider using them for debt relief.
Reason #1 – Empowering Yourself: Debt validation letters empower you by providing you with the right to question and verify the debt. They help ensure that you’re not being subjected to unfair or inaccurate debt collection practices.
Reason #2 – Legal Protection: Debt collectors are required by law to respond to debt validation letters within a specified timeframe. Failure to do so may result in them being unable to pursue further collection efforts or take legal action against you. That’s good news!
Debt Collection and Your Rights
Having your debt turned over to a debt collection agency can have serious financial consequences, including potential damage to your credit. Plus, some debt collectors can be aggressive and may attempt to collect on debts that you never owed or no longer owe.
If you believe that you don’t owe the debt described in the debt validation letter, either because it doesn’t belong to you or the statute of limitations has expired, it’s important to know that you have options.
First, you have 30 days to dispute the debt, starting from the date you received the required information from the debt collector.
Then, if you dispute the alleged debt in writing, debt collectors are not allowed to call you or contact you. Additionally, they are not allowed to try to collect payment until they have sent written verification that you, in fact, do owe the debt.
When disputing a debt, make sure you date your letter and also send it via certified mail where the recipient must sign for it. This way, you have a record of when the debt collector received it.
You Take Control With A Debt Validation Letter
When sending a debt validation letter, request details on the following: why the debt collector believes you’re responsible for the debt, how old the debt is, and whether the agency is licensed to collect it.
Plus you can control the flow of communication by requesting that the debt collector only communicate with you through your lawyer (if you have one) or specify what contact methods are permitted (phone, email, certified mail).
In the event that a debt collector continues to contact you or even harass you after you’ve sent a debt validation letter, you may file a complaint with the following agencies:
- The Consumer Financial Protection Bureau
- The Federal Trade Commission (FTC)
- Your State Attorney General Office
IMPORTANT: If during the process of sending debt validation letters while seeking debt relief, you discover debts you don’t owe, or accounts you never opened on your credit report, you can dispute them with the credit bureaus. All three major credit bureaus (Equifax, Experian, and TransUnion) provide instructions for disputing debt on their websites.
The Top 3 Benefits of Debt Validation Letters
Benefit #1 – Debt Disputes and Resolution: Debt validation letters can help you dispute inaccurate or unverifiable debt, which could potentially result in the removal of the disputed debt from your credit report.
Benefit #2 – Negotiation Power: Validating your debt can provide you with a stronger position for negotiations with creditors, allowing you to explore debt settlement options or potentially reduce the amount owed.
Benefit #3 – Protection from Legal Consequences: By exercising your right to request debt validation, you can protect yourself from potential legal consequences or judgments based on unsubstantiated debt claims.
The Next Steps After Sending a Debt Validation Letter
The first thing you should do after sending a debt validation letter is to review the creditor’s response. Check for accuracy, and identify any discrepancies or inadequate information.
If the response you receive is unsatisfactory or if you need further guidance, consider consulting with a reputable debt relief company like Americor can answer all your debt questions and help you become debt-free in as little as 20-48 months.
Conclusion About Debt Validation Letters And Becoming Debt-Free
Debt validation letters are a powerful debt relief tool you can use in your journey to overcome debt and achieve financial freedom… especially when going through the debt settlement process.
By understanding their significance and crafting effective debt validation letters, along with leveraging the benefits they offer – you can challenge the validity of your debts and potentially find debt relief from the financial stress associated with them.
Remember, knowledge is power, and by taking proactive steps toward debt validation, you’re reclaiming control over your financial future.
If you want to be debt-free, Americor can help you. For more information on Americor’s debt relief services, contact us today to see how we can help you validate your debts and start on the path to becoming completely debt-free!