Debt Validation: Do you have to pay ?

It happens all the time. Debt collectors try to collect on debts that consumers have no knowledge of or never owed in the first place. So, what do you do when a bill collector demands payment in full on a debt that you never knew existed? You need to request a validation of debt.

A validation of debt is a request for proof that the collection agency that is contacting you owns the debt/or has been assigned the right to collect the debt on behalf of an original creditor. A validation of debt also includes a complete payment history, starting with the original creditor, and a copy of the original signed loan agreement or credit card application. This may be a debt you really owe or possibly a debt that was sent to collections by mistake. Either way, debt collectors can be very unapproachable. It is important to remember that you also have rights. According to the Fair Debt Collection Practices Act, Paragraph 809, - Validation of Debts:

"(a) Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing:

(1) the amount of the debt;

(2) the name of the creditor to whom the debt is owed;

(3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;

(4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and

(5) a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.

(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector. (c) The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer.

The information presented in this article only covers some of the more important aspects of debt validation. It is important to do your research and fully understand your rights and obligations prior to attempting any type of communication with a debt collector.

Alan Barnes IAPDA Certified Debt Arbitrator President and CEO of Debt Regret http://www.debtregret.com

In The News:


pen paper and inkwell


cat break through


Future Secured? Oh Really?

A headline for a retirement annuities flyer declares "Future Secured!"... Read More

Out of Credit Card Debt - Without Filing Bankruptcy

To be out of credit card debt is your dream... Read More

What is Debt Settlement and How Does it Work?

Debt settlement involves negotiating with a creditor or creditors to... Read More

Your Ticket Out of Debt Relief

If you are in debt over your head and wondering... Read More

New Bankruptcy Law Makes it Harder to Stop Foreclosure

On October 17, 2005 President Bush's sweeping bankruptcy reform law... Read More

The Human Side - Debt Stress

In all the technical discussion you hear about credit... Read More

Bankruptcy Abuse

Bankruptcy is little more than a smack on the hand... Read More

How to Avoid Bankruptcy

Bankruptcy is a legal way to offer folks with high... Read More

New Bankruptcy Legislation May Make it Harder to Find an Attorney

The recently passed Bankruptcy Abuse prevention and Consumer Protection Act... Read More

Corporate Debt Management ? Perspective on the Why

Entrepreneurs have a tough time in their formative years. They... Read More

How to Negotiate Debt Settlements

Knowing how to negotiate debt settlements is the key to... Read More

Bankruptcy As An Option

If your financial worries are preventing you from sleeping at... Read More

Bankruptcy, Is It A Way Out

Negotiations with creditors have failed. Repossession is imminent and foreclosure... Read More

Debt is The Master of Souls

Wholeness requires separation. In order for you to experience yourself... Read More

Bankruptcy Your Best Bet?

Filing bankruptcy is a common practice among the U.S. Over... Read More

Take Careful Consideration Before Filing Bankruptcy

Filing bankruptcy is not fun! It is a last resort... Read More

What Are The Benefits and Consequences Of Getting Rid Of Debt The Easy Way

We have all experienced getting so far in debt we... Read More

Debt Management - Is It the Right Choice For You?

Debt Management plans offer credit counseling clients a different and... Read More

IVA Advice

An IVA (individual voluntary arrangement) is an alternative to bankruptcy... Read More

How To Pay Credit Card Debt Off

If you are determined to pay credit card debt off... Read More

Debt Validation: Do you have to pay ?

It happens all the time. Debt collectors try to collect... Read More

A Debt Elimination Process Must Be Initiated From You.

The first and maybe most important step in a debt... Read More

Senate Passes New Bankruptcy Law

The United States Senate passed a law on March 10,... Read More

Life on a Debt Management Program

Signing up for a debt management program is easy; it's... Read More

IVA: Individual Voluntary Arrangement

What Is an IVAThe IVA (Individual Voluntary Arrangement) was introduced... Read More

Utah, the Nation?s Bankruptcy Capital

Congress recently passed the Bankruptcy Abuse Prevention and Consumer Protection... Read More

Personal Debt Reduction Practices

Personal debt reduction practices, the steps people take to relieve... Read More

Debt Consolidation Versus Debt Negotiation

Debt consolidation versus debt negotiation are two options that are... Read More

How To Get Out Of Debt

If you have found yourself in a position where you... Read More

The ONE Law You Should Be Breaking

There is a law all smart people break.Parkinson's law.Parkinson's law... Read More

Credit Repair - Understanding The Basics

What is Credit?Credit means that you are using someone else's... Read More

Bankruptcy ? Bankruptcy Myths

Bankruptcy has long been a big question mark in the... Read More

Your Secret Weapon... A Budget

For many, the word 'budget' immediately sends shivers down the... Read More