Debt Validation - Some facts

This is a guest post by Sam, a member of creditmagic.org

Debt validation is also known as debt verification. This term denotes the authority of a consumer to dispute a debt and/or get authentication of a debt on paper from a debt collector. The authority to challenge the debt and get validation is an integral component of the rights of the consumer according to the Federal Fair Debt Collection Practices Act or FDCPA in the United States and is specified in §809 of this act.

Who is regarded a debt collector?

As per the Fair Debt Collection Practices Act, any entity or individual, as well as lawyers who are involved in collection of consumer debts on a regular basis are regarded as debt collectors. Hence, it is necessary for them to reply to appropriate requests for debt validation. On the contrary, the original lender and its staff usually do not come under the FDCPA. However, they might be controlled by other federal and state statutes. These statutes include the Fair Credit Reporting Act (FCRA) that was amended by the Fair and Accurate Credit Transactions Act (FACTA) in the year 2003.

Debt validation letter

A debt validation letter is sent to collection agencies, requesting them for validating a debt.

When can a consumer challenge a debt or request for debt validation?

At any point of time, a consumer can challenge a debt. However, according to the Fair Debt Collection Practices Act, if he sends a written application within a period of 30 days of the first written notification of the debt, then only the validation rights get activated. The FDCPA explains in simple terms particular words that should be included in the first written notification to the customer, especially that the consumer has 30 days to challenge the debt and apply for validation. Nevertheless, if the consumer fails to challenge the debt within this 30 day phase, this does not represent a lawful acknowledgment of the debt.

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