5 Debt Validation Steps vs. Collection Agencies

Are collection agencies harassing you for a debt you don’t owe? Are you feeling lost, confused, helpless, and not sure how to deal the crisis? If this is the situation, debt validation could certainly be a weapon that would help you combat collection agencies.

Now, you might be thinking what debt validation is all about. Well, debt validation is where you try to find out whether or not the collection agency has the right to collect the debt from you. Under the Fair Debt Collection Practices Act (FDCPA), you hold the right to get a debt validation letter from the collection agency within 5 days from their initial call. The validation notice tells you that you hold the right to validate/ dispute the debt within 30 days of receiving the letter. Now, let’s check out the steps that you need to take in order to deal with a collection agency.

1. Ask for a validation: Send the collection agency a debt validation letter requesting a validation of the debt. However, make sure you send the letter via certified mail and ask for a return receipt.

2. Verify if the CA is licensed: You might have to wait for a while to receive the letter from the collection agency. Meanwhile, you can make sure, if the collection agency is licensed in your state. The states where a collection agency doesn’t require proper licensing are Georgia, California, Iowa, Kansas, Kentucky, Montana, Oklahoma, Pennsylvania, and South Carolina. However, if the collection agency needs a license to collect in your state and if it is not licensed, tell them in writing that they are violating the state laws. Also, tell them if they continue with their collection attempts, they may face a lawsuit.

3. What if the CA doesn’t validate the debt: In case the collection agency doesn’t provide you with a satisfactory proof, you should send them the credentials mentioned below:

• A copy of your validation letter

• A copy of the return receipt

• A declaration mentioning the collection agency has violated the FDCPA

4. Remove collection listing: Under the Fair Credit Reporting Act (FCRA), if the collection agency doesn’t validate your debt, they are not authorized to report a negative entry to the credit reporting agencies. If they do so, ask them in writing to remove that as soon as possible. Also, tell them that if they don’t do it, you might file a proceedings against them.

5. Sue the collection agency: If they don’t remove the collection listing from your report, you can certainly file a lawsuit as they have deliberately violated the FDCPA. Consult with your attorney in that case and work accordingly.