Debt Validation: Do You Have To Pay?

Happens all the time. Debt collectors try to collect debts that consumers don’t know about or never owe. So what do you do when a bill collector demands full payment of a debt you never knew existed? You need to request a debt validation.

A debt validation is a request for proof that the collection agency that is contacting you owns the debt or has been assigned the right to collect the debt on behalf of an original creditor. A debt validation also includes a complete payment history, beginning with the original creditor, and a copy of the original signed loan agreement or credit card application. This may be a debt that you actually owe or possibly a debt that was sent to collection in error. Either way, debt collectors can be very unapproachable. It is important to remember that you also have rights. According to the Fair Debt Collection Practices Act, Paragraph 809, – Debt Validation:

“(a) Within five days of the initial communication with a consumer regarding the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, will send the consumer a written notice that contains:

(1) the amount of the debt;

(2) the name of the creditor to whom the debt is owed;

(3) a statement that unless the consumer, within thirty days of receipt of the notice, disputes the validity of the debt, or any part thereof, the debt collector will assume that the debt is valid;

(4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any part thereof, is in dispute, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and the debt collector will mail you a copy of such verification or judgment; Y

(5) a statement that, upon the consumer’s written request within the thirty day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.

(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any part thereof, is in dispute, or that the consumer requests the name and the address of the original creditor, the debt collector will stop collecting the debt, or any disputed part thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the creditor original, and a copy of said verification or judgment. , or the name and address of the original creditor, is mailed to the consumer by the debt collector.
(c) The fact that a consumer does not contest the validity of a debt under this section cannot be interpreted by any court as an admission of responsibility on the part of the consumer.

The information presented in this article only covers some of the most important aspects of debt validation. It is important to fully research and understand your rights and obligations before attempting any type of communication with a debt collector.