Have you received a letter or phone call from a creditor or collection agency demanding payment on a debt? If so, you may have heard about the option to request debt validation as a way to dispute the debt and get information from the debt collector. While it’s true that you have the right to request validation of a debt, the truth is that this process is often misunderstood and misused by consumers. In this article, we’ll explore the truth about debt validation requests and why they may not be the most effective solution for resolving your debt.
What is a Debt Validation Request?
A debt validation request is a formal request for the creditor or collection agency to provide some information that the debt is valid and that they have the legal right to collect on it. Under the Fair Debt Collection Practices Act (FDCPA), you have the right to request validation of any debt that is being collected from you. This includes the amount of the debt, the creditor’s name and address, and the date the debt was incurred. Debt validation does not require the debt collector to prove that the debt is valid. It only requires that they provide a limited amount of information.
How to Make a Debt Validation Request.
Setting some specific limitations aside, if you receive a letter or phone call demanding payment on a debt, you can request debt validation by sending a letter to the creditor or collection agency. It’s important to make this request in writing, as it provides a written record of your request. In your letter, you should include your name, address, and the account number of the debt in question. You may also request that the creditor or collection agency provide you with proof of the debt, such as a copy of the original contract or agreement that you signed, but the debt collector is not required to provide you with a copy of the contract. For instance, a credit card debt may be validated with a single monthly statement on the account that was allegedly mailed to you.
The Limited Effectiveness of Debt Validation Requests
While debt validation requests can be a useful tool, they are not effective at resolving the issue. In most cases, creditors and collection agencies are able to provide the necessary documentation to prove the validity of the debt. Even if the creditor or collection agency is unable to provide proof of the debt, they may still try to collect on it through other means, such as filing a lawsuit. A debt collector’s violation of this law is, unfortunately, not a defense to a debt collection lawsuit.
Better Options for Resolving Debt
If you are struggling to pay off a debt and want to find a resolution, there are other options available to you. One option is to negotiate a payment plan or settlement with the creditor or collection agency. This can involve paying off the debt in smaller, more manageable installments or negotiating a reduced balance in exchange for a lump sum payment. Another option is to seek the assistance of a debt settlement attorney, who can help you negotiate a resolution with your creditors. If you have already been served with lawsuit papers, contact a debt defense attorney right away.
What Now?
Don’t let the myth of debt validation requests mislead you into thinking they shield you from debt collectors. At the Fullman Firm, we offer top-quality debt settlement services to people all over California. With so many debt settlement companies out there, it can be hard to know who to trust. Unfortunately, some of these companies are scams that will take your money without delivering on their promises to pay off your debts. When you work with us, you work with a law firm of respected and skilled professionals. You can be confident that you are working with reliable consumer protection and debt settlement attorneys who have your best interests at heart.
Acting quickly when you receive a debt lawsuit is crucial because it can have significant consequences for your financial future. If you ignore the lawsuit or fail to respond in a timely manner, the creditor or collection agency may obtain a default judgment against you, which allows them to garnish your wages or seize your assets to pay off the debt. By taking prompt action and seeking the assistance of a qualified attorney, you may be able to negotiate a resolution or defend yourself against the lawsuit and avoid these negative outcomes.
When you come to us for help, we will protect your rights and pursue an acceptable resolution of your situation. We are known throughout the state of California for our skills in the courtroom and at the negotiation table, so we can provide you with exceptional legal service regardless of your unique situation. Please contact us to arrange a consultation.
FAQs
The Limited Effectiveness of Debt Validation Requests
What is the 11 word phrase to stop debt collectors? ›
If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
What happens if a debt collector refuses to validate debt? ›
What Happens If the Collector Doesn't Verify the Debt? If a debt collector fails to verify the debt but continues to go after you for payment, you can sue that debt collector in federal or state court. You might be able to get $1,000 per lawsuit, plus actual damages, attorneys' fees, and court costs.
How can you tell if a debt collector text is real? ›
These scammers can be very convincing, which is why you need to spot the signs of a fake debt collection:
- They Ask for Info They Should Already Have.
- They Won't Share Their Info with You.
- They Threaten or Lie to You.
- They Insist You Pay Right Now.
- They Ask You to Pay by Untraceable Methods.
In order to win a court case, a debt collector must prove that they have proper ownership of the debt, that you actually owe the debt, and that the amount they claim you owe is correct.
What is a legal loophole to remove collections from a credit report? ›
A 609 Dispute Letter is often billed as a credit repair secret or legal loophole that forces the credit reporting agencies to remove certain negative information from your credit reports.
What are three things debt collectors are prohibited from doing? ›
Debt collectors cannot harass or abuse you. They cannot swear, threaten to illegally harm you or your property, threaten you with illegal actions, or falsely threaten you with actions they do not intend to take. They also cannot make repeated calls over a short period to annoy or harass you.
What is a drop dead letter? ›
Send a 'drop dead' letter
You have the right to ask them to stop contacting you. To do so, you can send what's sometimes referred to as a “drop dead letter” — a written notice to the debt collector informing them you want no further contact. By law, debt collectors are required to follow this request.
Do you have to pay debt that was sold to a collection agency? ›
Until the debt is either paid or forgiven, you still owe the money. This is true even if it's a credit card debt that is sold to a collection agency and even if you think it's unfair.
How long before a debt becomes uncollectible? ›
Debt collectors don't want you to know that you can make them stop calling, they can't do most of what they tell you, payment deadlines are phony, threats are inflated, and they can't find out how much you have in the bank. Furthermore, if you're out of state, they may have no legal recourse to collect.
Do I have to give a debt collector my social security number? ›
Don't provide personal or sensitive financial information
Never give out or confirm personal or sensitive financial information – such as your bank account, credit card, or full Social Security number – unless you know the company or person you are talking with is a real debt collector.
What's the worst a debt collector can do? ›
The worst thing they can do
If you fail to pay it off, the collection agency could file a suit. If you were to fail to show up for your court date, the debt collector could get a summary judgment. If you make an appearance, the collector might still get a judgment.
How do you outsmart a debt collector? ›
You can outsmart debt collectors by following these tips:
- Keep a record of all communication with debt collectors.
- Send a Debt Validation Letter and force them to verify your debt.
- Write a cease and desist letter.
- Explain the debt is not legitimate.
- Review your credit reports.
- Explain that you cannot afford to pay.
Can you dispute a debt if it was sold to a collection agency? Your rights are the same as if you were dealing with the original creditor. If you do not believe you should pay the debt, for example, if a debt is stature barred or prescribed, then you can dispute the debt.
What is the 11 word phrase in the credit secret book? ›
Summary: “Please cease and desist all calls and contact with me, immediately.” These are 11 words that can stop debt collectors in their tracks. If you're being sued by a debt collector, SoloSuit can help you respond and win in court. How does the 11-word credit loophole actually work?
What to say to bill collectors to stop calling? ›
If you want a debt collector to stop contacting you, the FDCPA gives you the right to make that happen. Putting your request in writing, via a cease-and-desist letter, is an easy and effective option to stop the communication.
What not to say to debt collectors? ›
Never give out or confirm personal or sensitive financial information – such as your bank account, credit card, or full Social Security number – unless you know the company or person you are talking with is a real debt collector.
