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What is a debt validation letter?
Under the Fair Debt Collection Practices Act, debt collectors must give you information about the debt in question. The debt collector must send it within five business days of the first contact and it must contain the following details:
- The amount of your debt.
- The name of the creditor seeking payment.
- If you don’t respond with a written dispute within 30 days, the debt collector may assume the debt is valid and continue to ask for payment.
- If you request more information about the debt, the debt collector must prove their case in writing.
- Collectors are required to provide you with information regarding the original creditor.
When you don’t receive a DV letter within ten days after the first contact, request the collector for one the next time you reach out to him. Also, request for the collector’s address should you decide to ask for a DV letter.
Debt Validation Letter Templates
Some surprising facts about debt validation letters
All business transactions are now done online, from banking to paying bills, checking your airline and movie tickets, and more. If you’re like most people, your mailbox is now relegated as a junk box for financial notices and other kinds of junk mail.
Sample Debt Validation Letters
Although most companies now use email and downloads, various financial institutions still have to deal with receiving and sending letters. Although this letter is similar to the debt verification letter, it has some differences. Here are some facts that you should know about debt validation letters to help you through the process:
Debt collectors are those who send DV letters
The Fair Debt Collection Practices Act lays down what your rights are and defines the guidelines which collectors must follow. This law covers many important parameters, including:
- I’ll contact you when I see fit.
- The bank is not permitted to conceal crucial information about the terms of the financial product.
- The FDCPA requires debt collectors to send you a debt validation letter within five days of first contact. If they don’t do this, you can request one by reaching out to them.
Should you decide to deal with the issue, you have to do so within 30 days after receiving the letter. The issues you may dispute include:
- that you actually own the debt
- Requesting verification of your alleged debt
- The name of the company that first contacted you about your debt
You may write a letter to request for debt verification
When there’s no evidence of debt, send a debt validation letter to ask for more verification.
Collection agencies may attempt to collect debt that you don’t actually owe, or for more than the amount of money that you owed. Before accepting debt payments, they must legally prove that you incurred debt and for how much.
Here’s another way to say it: Must send debt verification to collector within 30 days of getting debt validation. If so, then collector should send written verification document, like bill or judgment.
You can download a template for the letter or compose one from scratch
If you are being confronted by an aggressive debt collector, the best thing to do is invest in a lawyer or legal expert.
If you want to avoid lawyers, you can write your own debt verification letter and indicate that you will be willing to negotiate. Mostly, there are many debt validation letters that you need to use depending on the nature of your request.
On its own, debt validation won’t fix your credit
There is almost no way that disputing a debt will actually remove it from your credit report, so you should know how to properly dispute a debt.
You should contact the debt collector or collection agency to have them remove the disputed debts from your credit report if they cannot prove that you are responsible for the debt.
If you have debts on your credit report that aren’t verified as belonging to you, then dispute them with the credit bureaus and have them cleared from your report.
Filing a dispute with one credit bureau will not automatically remove the bad accounts from your report. Neither will it remove any debts which you are currently disputing with the collection agency.
You only have 30 days if you want to dispute a debt
When you receive a call from a debt collector, they should provide you with a letter that outlines the bill you owe. If they don’t do this, then you can demand one from them right when they call.
But keep in mind that you have thirty days from when you received the first letter to send your dispute. If you don’t send your dispute on time, then the debt collector has full entitlement to consider the validity of the debt.
You may receive a lot of collection calls when you request for debt verification
You’ll probably get nowhere if you try to dispute debts that aren’t legitimately yours, but some people go the extra mile to dispute their actual debts just to avoid having to settle them.
If the debt collector has successfully verified your debt, you will receive a debt verification letter asking that you settle the debt right away. When this happens, you’ll find yourself on top of the hit list of your debt collector.
You can still ask the debt collector to only contact you by mail at a specified address, but it won’t stop your voicemail from quickly filling up before you even get the letter.
There are some debts which are too old for collection
The age of a debt is one of the most important aspects to consider when you’re writing a request for validation letter.
Just like other kinds of debts, student loans are also subject to a statute of limitations. Once this period expires, the collection agencies can no longer collect from your income. However, they may still try to reach out to you and ask for payment.
There are several factors that can affect the statute of limitations for debts; we’ll help you identify them and will help you figure out how much time you have.
- oral contracts
- written contracts
- open-ended accounts
- promissory notes
Do you know if this debt is by law and time-barred? As a collection agency, they are required to inform you about this. You may also check the debt validation letter which you should have received within the appropriate time frame.