What is a debt validation letter and when should you get one? (2024)

Receiving a call from a debt collector can be jarring, but you need to remain calm and make sure you’re not on the hook for an IOU you don’t actually owe. Unfortunately, it’s not altogether rare to be contacted for debt that’s not yours — or that’s past the statute of limitations.

“People are constantly contacted for debt that they do not owe,” said Andrea Kennedy, a CFP based in Great Falls, Virginia. “Some of this is honest mistakes, some of this is debt that’s been sold onward to debt collection agencies.”

And sometimes someone is trying to scam you.

That’s why it’s important to verify your debts with the proper documentation, such as a debt validation letter. Doing so can protect you from scammers, prevent debt collectors from pestering you and keep you from paying money you don’t owe.

What is a debt verification letter?

You may hear “debt verification letter” and “debt validation letter” used interchangeably but they refer to two different documents.

• A debt verification letter is a document a consumer sends to request information about debt.
• A debt validation letter is the document sent by a collection agency, showing that the debt exists and you are responsible.

As a consumer, you might send a debt verification letter when a collection agency contacts you to collect payment. It states you don’t recognize the debt you’ve been contacted about and you want proof you actually owe it. It also states that if the collector can’t prove the debt is yours, they need to stop contacting you.

The importance of debt validation and verification

Debt validation and verification can help consumers confirm that the debt and the collector are legitimate. Plus, asking for verification can keep collectors from harassing borrowers for payment without proof the debt is valid.

“If someone comes to your door or calls you without a letter, or you get a letter that does not cover this type of information, those are red flags,” said Kennedy. “This is a very specific process with rules around it that give you the chance to dispute a claim.”

It’s absolutely vital to ensure the collector is legitimate and to receive and keep written details of your correspondence.

Debt collectors have a legal obligation to send a debt validation letter and it’s important for consumers to be aware of that. If you receive information over the phone, ask for it to be sent in a letter. Do not give payment or personal financial information until you confirm that the collector is legitimate. You’ll want to corroborate any claims against your own records — and prove you’re following the correct procedures to dispute a debt.

What to look for in your debt validation letter

When you first receive a debt validation letter from a collection agency, you need to read it — compare the information given about the amount of debt to your own records. The letter should include the following details:

• Amount of debt you owe.
• The name of the creditor to whom you owe the debt.
• How to request the name of the original creditor.
• Notice that you, the consumer, have the right to dispute the debt.

Make sure you respond promptly if there are issues.

“If you receive a debt verification letter, it’s important to address it quickly,” said Kelley Long, CFP and founder of Find Your Financial Bliss coaching. “Since there are often errors, you want to make sure you dispute the debt within 30 days,”

If you have any reason to think there is a mistake or someone is trying to scam you, respond right away.

If you don’t dispute the debt within 30 days, the debt collector will assume that the debt is valid. Within this window of time, you have the right to request the name and address of the original creditor and to dispute the debt — or part of it — via a debt verification letter.

What your debt verification letter should include

A debt verification letter is the same thing as a debt dispute letter. The Consumer Financial Protection Bureau offers templates you can use to create one. In this letter, you should include:

• Your name and address.
• Collection agency’s name and address.
• Acknowledgment of contact from a collection agency, including the date they contacted you.
• A statement saying you dispute the debt.
• Request for proof that the debt is valid and belongs to you.
• Request for all details about the debt — including the amount, how much is owed, and who the original creditor is.
• Request for proof of collection agency’s license.
• Contact information from the original creditor.
• Request to stop making contact if the debt isn’t valid.

Ultimately, a debt verification letter should ask for proof that any debt you’re asked to pay is yours. It’s also wise to send your verification request via certified mail. That way, you can document both the date you sent it and the date it was received.

The debt isn’t yours: Now what?

When you dispute a debt in the belief that it isn’t yours, the collector cannot legally contact you without proving that you do, in fact, owe the debt. The response to your debt verification letter will hopefully prove that some or all the debt you’re disputing is not actually yours.

If the collector still considers the debt to be yours and responds with evidence, they can resume contacting you within limits set by law. Debt collectors aren’t allowed to threaten, curse, lie, harass, or publicly reveal your information at any point. You can file a complaint with the Consumer Finance Protection Bureau if the debt collector isn’t following the law as set by the Fair Debt Collection Practices Act.

As a final measure, you can request that the debt collection company stop contacting you, period, at which point the business can only contact you once more to confirm it will stop or to inform you that it plans to take legal action. The National Association of Consumer Advocates can provide some resources if things reach this stage.

Frequently asked questions (FAQs)