What is verification of debt

Please consult a qualified attorney before responding to lawsuits or other legal threats. Melinda Opperman is an exceptional educator who lives and breathes the creation and implementation of innovative ways to motivate and educate community members and students about financial literacy. Melinda joined credit. The content, links and resources in this site are presented for informational purposes only and should not be construed as legal or tax advice.

One of our Financial Coaches will contact you to discuss the path to reaching your financial goals. Speak to a Coach Now This letter can be used to: Determine the exact amounts you owe Gather documents that verify your debt Get information on who you owe Determine how old the debt is Place a pause on the collection proceedings There are two main benefits to requesting the verification of the debt. Download our free debt validation letter sample.

About The Author Melinda Opperman is an exceptional educator who lives and breathes the creation and implementation of innovative ways to motivate and educate community members and students about financial literacy. FICO Score vs. The collection agency responded by sending her a printout of the required information and a request for immediate payment. The result was an avalanche of letters from the collection agency and ultimately telephone calls demanding payment. The purpose of this article is not to discourage the use of a debt validation letter if you believe you do not owe a debt.

It is to inform you of the pros and cons of using a debt validation letter. Once you understand these pros and cons, you can make financial decisions that are in your best interest as you work to restore positive credit or pay off negative accounts.

It's important to also remember you are not alone, there are a number of causes to consumer debt and we are here to help develop a plan to meet your financial goals! Dealing with collection agencies and understanding your credit rights can be difficult, and there is much more to consider than what is represented here.

We recommend you talk to a certified credit counselor who can help you develop a strategy for handling credit and collection accounts and for guidance on how you can focus on building credit. Live Chat. Client Login. Return to Home Page. Debt validation — the potential result: Proof that you owe the debt, Collection calls and letters, Or maybe the debt is removed from your credit report. As you review the letter and compare your own records, you may also find that the debt is time-barred.

While a debt validation letter provides information about the debt the collection agency claims you owe, a verification letter must prove it. Here are some things to make sure you include:. And remember that you must send the letter within 30 days of receiving the debt validation notice.

Certified mail provides a receipt proving that the letter was mailed and also requires a signature upon delivery. Return receipt provides evidence that the letter was, in fact, delivered. Then take some time to do your own research to provide evidence that the details are inaccurate.

This may involve contacting the original creditor to confirm that the debt is legitimate and that the collection agency has the right to collect it. Again, it would help if you were as specific as possible as you lay out why the details about the debt are wrong. If you can provide enough evidence, the collection agency may stop attempts to collect. Alternatively, the collection agency may continue to insist that you owe the debt and may even file a lawsuit.

You may also want to enlist the help of an attorney who can take over communication with the agency, protect your rights and defend you in court. Sometimes debt collection agencies get information wrong, and sometimes you may be victimized by a debt collection scam. If you need more information or want to dispute the debt, make sure you do that within 30 days of receiving the validation letter.

But if you owe the debt, this process can help you obtain enough information to feel safe working with the collection agency to pay the full amount or to settle for less than what you owe. At any point during this process, consider getting a free consultation with a debt attorney. Since , Tayne Law Group has helped countless clients resolve their debts for a fraction of their original amount.