Not every debt collector who contacts you is attempting to collect a legitimate debt. Sometimes debt collectors scam consumers into paying debts that aren't real or perhaps have already been paid. That's why it's crucial to write a debt validation letter if you're approached by a debt collector.
Here's a sample letter and template you can use if you need to write one, along with an explanation of your rights and tips to ensure the process goes smoothly.
The Right to Request Validation
Federal law gives you the right to request a debt collector provide proof that you owe a debt. It's the best way to ensure that you're not paying a debt you don't owe or a debt that the collector isn't authorized to collect on.
The debt validation request is time-sensitive. You must make your request in writing within 30 days of the debt collector's initial contact with you. If you wait more than 30 days, your validation request may not be covered under debt collection law.
Your rights are not protected if you make your debt validation request over the phone. Don't worry if you don't know what to say in a letter; there's one below that you can use as a template.
Once you send a request for proof, also called a debt validation letter, the collector must stop collection efforts until they've sent sufficient proof of the debt. Itmeans they cannot call you, send you letters, or list the debt on your credit report.
How to Write a Debt Validation Letter
In the letter, reference the date of the initial contact and the method, for example, "a phone call received from your agency on April 25, 2024." You also need to provide a statement that you're requesting validation of the debt. Do not admit to owing the debt or make any reference to payment.
Send your letter via certified mail, so you have proof of when the letter was mailed and received.
Debt Validation Letter Example
Re: Account Number
This letter is sent in response to [a letter/phone call]I received on [date you received the letter/call]. I am requesting that you provide verification of this debt.
Please send the following information:
- The name and address of the original creditor, the account number, and the amount owed.
- Verification that there is a valid basis for claiming I am required to pay the current amount owed.
- Details about the age and amount of the debt including a copy of the last billing statement from the original creditor; a detailed explanation of any interest added or payments made since the last billing statement and the legal authorization for this interest; the date the original creditor claims this debt became delinquent.
- Whether this debt is within the statute of limitations and how that was determined.
Please also forward details about your authority to collect this debt: whether you are licensed in my state and if so provide the date of the license, name on the license, license number, and the name, address, and telephone number of the state agency issuing the license. If you are contacting me from outside my state, provide the licensing information from your state as well.
Sincerely,
Your Name
The Debt Collector's Response to Your Validation Request
If the debt collector does not send you proof of the debt, any future collection efforts are in violation of the Fair Debt Collection Practices Act. Note that your account may be assigned or sold to a new debt collection agency. In that case, your validation request from the previous collection agency does not apply.
Otherwise, if the debt collector does send proof, determine whether or not the debt is within the statute of limitations, and then decide how you want to proceed. Paying the debt takes care of the obligation for good. You may be able to negotiate a settlement for less than the full balance due. Finally, if the debt is outside the statute of limitations for your state, you can ignore the debt if you have no interest in paying it, but keep in mind that collection efforts can continue indefinitely.
Frequently Asked Questions (FAQs)
How long does a collector have to respond to a debt validation letter?
The law does not specify a time window for a debt collector to respond to a debt validation letter. However, the collector must cease collection activities until it responds to your letter and provides proof that you owe the debt.
When should I request debt validation?
If you are unsure whether a debt is valid, you should submit a debt validation letter immediately. By law, you have 30 days to request validation after you receive a collections request. If you wait longer than this, the debt collector is not obligated to respond to your request.
FAQs
If you write a letter, instead of using the tear-off form, the debt dispute letter should include your personal identifying information; verification of the amount of debt owed; the name of the creditor for the debt; and a request the debt not be reported to credit reporting agencies until the matter is resolved or ...
What is the best thing to say when you dispute a collection? ›
I am writing in regards to the above-referenced debt to inform you that I am disputing this debt. Please verify the debt as required by the Fair Debt Collection Practices Act. I am disputing this debt because I do not owe it. Because I am disputing this debt, you should not report it to the credit reporting agencies.
Do debt validation letters really work? ›
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.
What is the best reason to put when disputing a collection? ›
If you spot wrong account numbers, mismarked payments, or unfamiliar accounts, dispute away. Include solid evidence like bank statements proving the errors.
How do you write a good dispute letter? ›
Your letter should identify each item you dispute, state the facts, explain why you dispute the information, and ask that the business that supplied the information take action to have it removed or corrected. You may want to enclose a copy of your report with the item(s) in question circled.
How do I dispute a collection and win? ›
So, look for any collections you don't recognize or believe to be wrong. If spotted, you can dispute the debt directly with the three major credit bureaus and submit evidence to prove it's inaccurate. The bureaus must then investigate and remove any debt from your reports that the collectors fail to verify as legit.
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 is the 609 loophole? ›
2) What is the 609 loophole? The “609 loophole” is a misconception. Section 609 of the Fair Credit Reporting Act (FCRA) allows consumers to request their credit file information. It does not guarantee the removal of negative items but requires credit bureaus to verify the accuracy of disputed information.
How to get rid of collections without paying? ›
Ask for a goodwill deletion
You may be able to ask the collection agency, the original creditor or both to request the credit bureaus delete the delinquency from your credit reports as a courtesy. Of course, even a goodwill deletion will only remove the collection account from your credit report.
What debt collectors don't want you to know? ›
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.
Ignoring or avoiding a debt collector is unlikely to make the debt collector stop contacting you. If you believe you do not owe the debt, you should tell the debt collector. If the debt is yours and you can't afford to pay it, you may be able to decide with the debt collector.
How do I know if a debt collection letter is legit? ›
Whenever someone tries to collect a debt, ask for all of their company's information, including:
- The collector's full name.
- Company name.
- Company address.
- Company phone number.
- Company website address.
- Company email.
A 623 dispute letter is a written communication submitted to a credit bureau, typically by a consumer, to dispute inaccuracies or discrepancies in their credit report.
How to fight a false debt collection? ›
You can file a complaint with the federal Consumer Financial Protection Bureau or through a consumer protection office in your state. Many states have more stringent laws governing debt collectors. For help finding federal or state agencies, go to USA.gov.
Is it better to dispute or pay a collection? ›
It is usually worth the effort to dispute the debt. At the very least, it will buy you some time.
Do collection dispute letters work? ›
A debt collector must stop all collection activity on a debt if you send them a written dispute about the debt, generally within 30 days after your initial communication with them. Collection activities can restart, though, after the debt collector sends verification responding to the dispute.
How do I write a letter to settle a debt? ›
Most debt settlement letters include:
- The date, name, and address of the credit card company.
- A notation after the address that this is regarding a hardship letter.
- The credit card number and amount of the debt.
- A short statement of your financial situation, why you're in that situation, and why full payment is a hardship.
