The Debt Validation Letter is Your Best Weapon Against Debt Collectors!

Debt collectors hate debt validation letters. So if you know your credit rights under the Fair Debt Collection Practices Act you can develop an effective debt validation strategy, using a validation letter, to legally improve your credit.

The reason debt collectors hate receiving a debt validation letter is because it forces them to either comply with the credit laws or it arms you with weapons you can later use against them as part of a debt validation strategy. Either way, you win.

What is a Debt Validation Letter?

Let's say you borrow $300 from your friend Sonya and later you borrow $200 from your sister Laura. Well a few months later you get a call from your brother Herbert telling you to pay him the $200 you borrowed from Laura.

Your first thought might be "why should I pay Herbert for money I owe Laura?" You might also think to yourself "does Laura really want me to give her money to Laura?"

As a matter of fact, you may start to think about it some more and realize that you actually already paid either Sonya or Laura some of their money back, but you just can't remember which one, how much, or when.

Would you pay Herbert just because he told you to? A letter demanding proof concerning a debt that a debt collector is attempting to collect is what we call a "debt validation letter" (see sample validation letter).

Just like Herbert, debt collection agencies will contact you demanding you to pay them for money they claim you owe another company. Per the Fair Debt Collection Practices Act (FDPCA), you have the right to send a letter to require a debt collection agency to validate that they are authorized to collect the debt on behalf of the original creditor.

You also have the right to make sure you actually owe the debt they are attempting to collect and you have the right to require them to prove the amount of the debt they claim you owe.

I have seen several clients actually pay debt collectors for debts they no longer owe or even pay the wrong company, or the wrong amount. Have you ever tried to get money back from a debt collection agency? Good luck! Don't let them intimidate you into paying a debt before you get all of the facts. Know your credit rights and use them.

The FDCPA authorizes you to send the debt collection company a validation letter to demand they validate the debt they are attempting to collect. If they fail to validate the debt they have to cease and desist further collection activity.

This includes the fact that they cannot legally continue to report the collection account to the credit bureaus.

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