Debt Validation Letter - How to Validate a Debt

Having a debt collector contact you can be upsetting. A debt collector may try to scare you into making a payment right away. Don’t let them throw you off your game. You have rights.

The best way to take control of the situation is to start by getting the facts straight. Before you discuss the debt or make any payment, you should first confirm that the claim is legitimate and accurate.

Validating the debt is a way for you to protect your rights. Here’s how you can do it. 

What is a debt validation letter?

A debt validation letter is a formal notice from a debt collector. By law, it is required to spell out certain details about the debt the collector claims you owe. 

When someone approaches you for payment of a debt, it is very important to get the details before deciding what to do. Before you have had a chance to review a debt validation letter, do not say or do anything to agree that you owe the money. The debt validation letter can help you confirm that the debt is accurate and owed by you. 

Debt collectors make money by collecting as much as they can, as quickly as they can. So, they may attempt to bully you into making a payment quickly, before you’ve had a chance to get all the facts straight. 

This is where your rights under the Federal Debt Collection Practices Act (FDCPA) kick in. That’s a federal law that governs how debts are collected. A debt collector is required to provide details about your debt. They are also required to give you 30 days to dispute any of the information they send you.

When you are contacted by a debt collector, don’t ignore them. The way to take control of the process is to request a debt validation letter. This will give you a clearer picture of the situation.

What is the difference between a debt verification letter and a debt validation letter?

A debt validation letter is your request to a debt collector to confirm that the debt is valid. It asks for basic details such as the amount owed, the original creditor, and the date the debt was incurred. A debt verification letter is a response from the debt collector. It provides detailed information about their claim. This should include account numbers and documentation of the debt. It should show how fees and interest were calculated. Sending a debt validation letter within 30 days of being contacted protects your rights under the Fair Debt Collection Practices Act (FDCPA). If the collector can't verify the debt, they must stop their collection efforts. That could save you from paying debts you don’t owe or falling victim to fraudulent claims.

Why You Might Need a Debt Validation Letter

Imagine getting a call from a debt collector about a credit card balance you haven’t thought about in years. You may remember the account, but the amount they’re asking for seems way off. Or, someone contacts you about a debt you already repaid, but the collector insists you still owe it. Maybe it’s a debt that isn’t even yours—a case of mistaken identity or a mix-up with similar names.

In these situations, a debt validation letter can help you start to solve the mystery. It gives you the chance to press pause on the collection process. That can give you the time and information you need to figure out what's going on.

A debt validation letter is a formal request for details about the debt in question. The law requires collectors to prove that the debt is real and that they have the right to collect it. 

Details debt collectors are required to provide include:

• Name of the creditor.

• Contact information for the creditor.

• Account number associated with the debt. 

• Itemization of the amount owed. This should reflect the original amount plus any interest, fees, and payment history

Sending a debt validation letter has an additional benefit. The debt collector has to stop collection efforts until they’ve provided the information you've requested. This can buy you some time. That gives you a chance to check your records and research whether you have grounds for disputing the debt.

Getting these details can protect you from scams, errors, or unfair collection practices. The information you receive can help you understand your options before taking action.

It’s easy to feel overwhelmed or unsure when dealing with a debt collector. Sending a debt validation letter is a powerful first step in taking control of the situation.

What must a debt validation letter include?

To be legitimate, the debt validation letter you receive must include the following:

• Name of the creditor. The company contacting you about the debt may be a third-party debt collector that you have never heard of. Getting the name of the creditor can help you figure out if you really owe the debt. It’s possible that the creditor may be different from the original lender if the debt has been sold to someone else, but you should be told where the debt came from. 

• The amount owed. Check this figure against your own records if you have any. Interest charges and late penalties may have added to the amount you originally borrowed. 

• Acknowledgement of your rights under the FDCPA. You should be notified that you have thirty days to respond by disputing the debt or by requesting additional information.

The debt collector’s first contact with you might include all of this information, which means you won’t need to request it.

How to validate debt - 3 steps

Your legal rights depend on your timely response. Here are three things you should do to validate your debt. 

• Step 1: Respond to the debt collector quickly

• Step 2: Make the debt verification request in writing

• Step 3: Send the debt verification request with tracking

1. Respond to the debt collector quickly

The law gives you the right to receive information and time to think about your response. However, your rights depend on responding within 30 days. 

Responding is not the same thing as acknowledging or paying the debt. You can respond by sending a debt verification letter, which is a request for additional information. A debt verification letter buys you time while you get the information you need to figure out whether the claim is legitimate and whether you are legally obligated to pay.

The key is to request debt verification within 30 days. If you fail to respond within that time, the creditor is entitled to assume that the debt is valid. 

2. Make the debt verification request in writing

Your debt verification letter can request written documentation of any the following items. This list may seem like a lot to deal with, but remember, these are just requests for information. It’s the debt collector’s job to provide answers to your requests. Simply copy anything from the list that you think might apply to your situation, and include those items in your request for debt verification. 

• The name and address of the creditor.

• The account number of the loan or credit card on which the debt is owed.

• The amount owed.

• The name and address of the original creditor, if different from the current creditor.

• The account number at the original creditor on which the debt was incurred.

• Documentation of the transfer of the debt from the original creditor to the current one.

• A copy of the original agreement that created the debt.

• If you are not the original borrower, documentation of who was and why you should be expected to pay the debt.

• A copy of the last billing statement sent by the original creditor.

• If the debt has been transferred to another creditor, the date of that transfer and the amount transferred.

• An itemized list of any interest, fees, and other charges added to the original amount owed. This list should show the date and amount of each addition, along with an explanation of how these were calculated. 

• An itemized list of payments to the account, including dates, amounts, and the resulting reduction in the amount owed.

• Dates for when the creditor claims the amount owed was due, and when it became delinquent.

• A date for when the debt collector believes the statute of limitations for this debt will expire, and their basis for determining that date.

• Information on the debt collector’s licensing in your state. This should include the name of the organization to which the license was issued, the license number, and the name, address, and phone number of the state agency that issued the license. 

• A request for an offer of an amount the creditor would accept to settle the debt, if they will accept less than the full amount owed in order to get payment sooner.

3. Send the debt verification request with tracking

When you send your request for more information, keep a copy of your letter. If you send it by mail, request a confirmation of receipt. 

You may also want to send a copy of your letter by email. This will speed your response and may give you another way to confirm that the debt collector has received your request. 

What happens after you get a debt validation letter?

Once the debt collector validates the debt and answers the questions in your debt verification letter, you have 30 days to make a decision about what to do next. 

The three main choices you have are:

• Pay what you owe. If you think the claim is legitimate and can afford to pay it, you may want to pay the debt. This will save you from further collection activities for this debt, including a lawsuit and potential judgment against you. Paying the debt will also allow you to avoid the potential for further damage to your credit.

• Fight the claim. If you think the claim is not legitimate, you may dispute it. If the debt is large, this may mean defending yourself in a lawsuit. You should consider getting legal advice before fighting a claim. If you can’t afford an attorney or don’t know how to find one, look for a Legal Aid society in your area that can help.

Make a settlement offer. By the time a debt has been referred for collection, creditors are often willing to take less than the full amount owed. You can try making an offer yourself or work with a professional debt resolution specialist to do so.