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What to Know About Debt Validation Letters

Posted by Ryan D. Peterson | May 12, 2021 | 0 Comments

Debt Validation letter

It's not uncommon to receive a phone call or notice in the mail from a collection agency looking for payments. Do you have a debt validation letter?

When a debt collector contacts you about an unpaid debt, your first order of business should be to obtain a debt validation (DV) letter.

Under the Fair Debt Collection Practices Act (FDCPA), collection agencies are required to provide proof that the debt is legitimate, that the debt is legally yours and that the collector has the right to collect on behalf of the original creditor.

Debt validation letters are valuable assets during the debt collection process. Mistakes are common and can often lead to you paying off debt you don't owe or that are past the legal statute of limitations.

What to Know About Debt Validation Letters

Debt validation letters are valuable assets during the debt collection process. Mistakes are common and can often lead to you paying off debt you don't owe or that are past the legal statute of limitations. 

Here's what you need to know:

1). Federal law gives you the right to request a debt collector provide proof that you owe a debt.

2). You must make your request in writing within 30 days of the debt collector's initial contact with you.

3). Your rights are not protected if you make your debt validation request over the phone.

4). Once you send a debt validation letter, the collector must stop collection efforts until they've sent sufficient proof of the debt.

Read: How Much Debt Do Millennials Have?

Debt validation letters are designed for consumers' protection. Before any money changes hands, collectors must prove that their debts are legitimate. Requesting verification of debt is a quick and legally recognized way to establish legitimacy before you proceed to negotiate with a debt collector.

Validation letters are also used to explain both how much money you owe and to who. In addition to the debt amount, they will also show any extra fees or interest rates the collector has added. 

If you're facing a debt collection lawsuit, contact Peterson Legal today! Call Now (612) 367-6568

Article Source: The Balance and Credit.org

About the Author

Ryan D. Peterson

Attorney Ryan D. Peterson Ryan D. Peterson is a former debt collection attorney turned consumer rights expert and advocate. After graduating from William Mitchell law school in 2008, Ryan opened his own criminal defense firm. In 2010 Ryan joined a Minneapolis-based debt collection firm. Ther...

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