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Sunday, 1 April 2012

What You Must Understand The Validation of Debt Letter

By Kente Wallman


A validation of debt letter has a very important role when you try to hammer down the collections process. These letters should be written properly to be effective because it establish your dispute with the claims of your creditor or collections agency.

Over and over innocent debtor falls prey to their creditor or debt collector who has been heaping collections even on old debts without giving valid authentication or validation. Unfortunately your creditor and collections agency will not properly validate the account they are collecting on unless you compel them to.

When you ask your creditor or collections agency to authenticate your debt over the telephone, do not expect to see results because it is very unlikely that they would pay attention to your request. They would refute instead and will keep coming after you confronting you with one lame excuse after another as to why they do not need to validate the debt and acknowledge your requests. That is why it is a must that you make a well written debt validation letter.

From my wide-ranging hands on practice in the credit and debt world, I fast came to the realization that most consumers who amass any amount of debt discern little or know nothing about the powerful use that a validation of debt letter has on a collector. Because of this fact I was determined to educate people on how to write an all inclusive demand letter so that the average consumer that is being collected on could invoke the power of Federal law under the Fair Debt Collection Practices Act (FDCPA).

As a consumer the FDCPA gave you the rights to demand for validation. By sending debt validation letters, you can determine whether or not you are communicating with your original creditor or to a third party junk debt collection company who has no rights to collect on your debt. This is very helpful because this is the basis as to how you will dispute the debt when drafting the letters and this can be rather different depending on whom you're sending the letters to.

Another very important element to be concerned about is what gives the collector the right to collect and what information is required by law. It is very necessary for you to request more information than is required by Federal law under the FDCPA because at the end of the day the worst answer you would get to such a request is a no.

You can make a validation of debt letter on your own or you may opt to seek professional help. Keep in mind that sending a properly presented validation letter can be the determining factor between thousands of dollars of debt that you may have to pay in the future, whether you settle or not. When sending debt validation letters, you need to send them at the right time during the collection process. When sent too late, debt validation letters can offer almost no protection. There are actually numerous types of validation letters that can be sent at varying times all through the collection process.

Validation of debt letter are given power by the FDCPA or the Fair Debt Collection Practices Act. This Act, or law, will require all debt collectors to supply validation on every account that they are attempting collection on but only if the consumer asks for it. This Act also prohibits debt collectors from ongoing harassment following a request for validation of debt letter, unless the collector can present lawfully demonstrable validation that prove you in fact owe them money or something of value.

Debt validation is moreover very dissimilar from debt verification. Some credit collection agencies and debt loan consolidation companies use the two terms interchangeably. This is incorrect and will lead you off track from the defense that a well put together debt validation letter can offer.

There is a big difference between a validation letter and a request for verification of debt as the latter is simply requiring a debt collector to confirm your name and mailing address. This type of request does not establish in any way whatsoever that you are obligated to pay the debt collector a dime of money. As you can see this is why it is so important to send a validation of debt letter that is properly written, requesting the precise information needed.




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