Debt verification is well explained as a consumer’s right to confront or authenticate a debt and accept written certification of a debt from a debt collector.  One of the foremost consumer’s rights is the right to dispute the debt and receive validation.

Deadline for Debt Collector

Debt collector does not have a deadline to provide a response to the validation request.  He has to temporarily defer all attempts to make arrangements to collect the debt until they have sent a pragmatic reply.   The debt collector cannot legally proceed against the debtor if he fails to give proper validation to the request made by a consumer for debt verification.   Despite the request made by the consumer, if the collection process goes on, the consumer may file a law suit in state or federal court.

Consumer’s proof of debt

If you send a communication mentioning that you do not owe money, within a month after you receive the written notice, the collector cannot get in touch with you, regarding debt collection.  But, if you are proved that you owe money to the finance institution, through a copy of a bill for the money borrowed, the debt collector can renew his debt collection activities. If in case the consumer fails to disagree with the debt liability within the 30 day period, he cannot be legally admitted.   Meanwhile, the debt collector needs to be doubly sure as to whether the amount being claimed from the debtor is accurate and identification of the debtor owes the debt is properly done.

Debt Validation Letter

This letter is sent to the Debt Collections Agency mentioning the account number of the debtor.  This is in response to the notice received from the credit agency disputing the claim and requesting for validation.  This empowers the debtor of his right to request for proof of a debt validation. A debtor can request for the copies of:

• The contract which authorizes the creditor to collect debt on the alleged debt
• The signed accord from the debtor in compliance to pay the creditor
• The documents regarding the payments made on this account validating the amount

The debtor can demand the creditor to completely remove the proof of debt from his credit file if the collection agency fails to give response to his request within thirty days from the date of the receipt of the letter, and a copy of such removal must be intimated to the debtor immediately. He is also free to quote the Fair Debt Collection Practices Act and can request them not to disturb him mentally either at home or place of employment and that all the future correspondence must be in writing.

Debt Collection Notice

This notice is forwarded to you to inform that a creditor has turned over a past due account to their agency to collect on an unpaid past due account. You are required to check whether the debt is actually owned by the collection agency which has sent you this notice. Also get confirmed that the debt recovery agency is licensed.

Debt Collectors

It is very critical to know the Debt Collectors under the FDCPA because the law does not prescribe to all attempts to recover debts. Examples of debt collectors include:

1. Agencies engaged in Debt collection
2. Creditors misrepresenting themselves as a debt collection agency
3. Creditors who do sub-contract for other contractors
4. Collection attorneys
5. Persons or companies who purchase delinquent debts
6. Repossession companies
7. Suppliers of deceptive forms stating that they are debt collection agency