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A debt validation letter can be an effective tool for dealing with debt collectors.
However, I've discovered there’s a fair amount of misinformation online about debt validation letters.
So today I'd like to share some firsthand experience on how to properly use a debt validation letter based on my work in the consumer debt industry for the past 15 years.
What Is A Debt Validation Letter?
If a debt collector contacts you about an alleged past due balance, you have the right to request written documentation you actually owe the money.
The Fair Debt Collection Practices Act (FDCPA) states a debt collector must provide you with proof of debt if you request it.
According to the CFPD's (Consumer Financial Protection Bureau) 2023 Annual Report, they received approximately 116,000 complaints about debt collectors — 52% of those complaints were for attempts to collect debt not owed.
So, just because a debt collector claims you owe money, it doesn't automatically mean it's true.
Debt Verification vs. Debt Validation
Sometimes you see the terms “debt verification letter” and “debt validation letter” used synonymously. However, they're actually 2 different things:
- A debt verification letter is the letter you send TO the debt collector if you are disputing the validity of their claim and you want them to provide you with proof that their claim is valid.
- A debt validation letter is the letter you receive FROM the debt collector containing all the particulars of the alleged debt such as the amount, who the creditor is, etc.
In a perfect world, the term “debt verification letter” (rather than a debt validation letter) would be used to describe the written correspondence you send TO a debt collector requesting proof a debt is legit.
But the reality is that most people refer to the letter sent TO a debt collector as a “debt validation letter” — even though it’s a misnomer.
Therefore, for the remainder of this blog post and for the sake of clarity, I'm going to go with the flow and use the term "debt validation letter" (even though it's technically incorrect).
When To Use A Debt Validation Letter
(And When You Shouldn’t)
The 3 most common scenarios for sending a debt validation letter to a creditor or collection agency are:
- Mistaken identify. If your name is Sam Jones but you’re not the Sam Jones that owes the money, send the debt collector a debt validation letter requesting they prove they’re contacting the correct Sam Jones. Cases of mistaken identity can and do happen.
- The debt is really old. If you’re contacted by a debt collector about an alleged old debt, even if you think you might owe some or all of the amount they’re claiming, it’s your right to request documentation from the debt collector to prove you actually owe the money. If they cannot provide proper documentation to validate their claim, they must cease their collection efforts against you and close their file.
- The debt has been purchased. Debts get bought and sold all the time. And quite often, the record keeping is pretty shabby. So if a debt collector contacts you about a past due debt and it appears they purchased the debt from one of your former creditors, send a debt validation letter to the debt collector asking them to prove that you owe the money and they are the rightful owner of your account. If they can’t produce the proper paperwork, they must drop their claim against you.
Just because a debt collector claims you owe money it doesn’t always mean it’s true. If there’s any doubt, make them show you the appropriate paperwork to validate their alleged claim. It’s your right, pursuant to section 809 of the FDCPA.
However, the debt validation strategy is not recommended in every instance. It can backfire and work against you if you don’t use it wisely. Here are 3 scenarios when sending a debt validation letter is not recommended:
- You actually want to resolve the matter. If you know you owe the money and your goal is to ultimately resolve your outstanding balance with a one-time discounted lump sum settlement or even a payment plan, do not send a debt validation letter forcing the debt collector to go dig up the paperwork associated with your account. Yes, it’s possible you’ll trip them up on a paperwork technicality and they won’t be able to produce the documentation to validate your debt. But if they do produce the requested documentation, don't expect them be in the mood to cooperate with you since you forced them to jump through hoops unnecessarily. A frivolous debt validation request could also trigger your account to be sent to a collection law firm to commence litigation against you.
- If the debt is near the end of the statute of limitations. Each state has a statute of limitations for how long you can be legally liable for a debt. If you believe the debt in question is approaching the statute of limitations and you would prefer to just let the statute expire rather than trying to resolve it, sending a debt validation letter could alert the debt collector about the approaching deadline — possibly invoking more aggressive collection action against you. Also, if your debt validation letter inadvertently acknowledges the validity of the debt, that can extend or revive the statute of limitations in some states.
- When your account is still with the original creditor. Requesting the original creditor (i.e. a credit card company) to produce documentation to validate a debt in hopes they “lost your paperwork” is a waste of your time and theirs because 99.9% of the time they will be able to validate your debt. Sure, the original creditor will most likely comply with your debt validation request, but now you've put a target on your back as someone playing shenanigans — and your delinquent account could be flagged for litigation, rather than remaining with their (non-litigation) collection department or collection agency.
Be smart about sending a debt validation letter. Yes, it can be an effective strategy, but it’s not a magic solution for every situation.
Debt Validation Letter Template
Composing a debt validation letter needn’t be complicated. Simpler is better.
Here’s a sample debt validation letter letter you can use:
{Today’s Date}
{DEBT COLLECTOR NAME}
{STREET ADDRESS}
{CITY, STATE, ZIP}
Re: {Account Description, Account #, etc}
Dear {Debt Collector Name},
I am responding to a collection notice received from your company. (please see attached)
I do not recognize this claim. Please provide me with written documentation to validate this purported debt:
• An itemized statement showing the amount you claim I owe.
• A copy of the written agreement or promissory note I signed relating to this purported debt.
Kindly suspend all further collection activity until you are able to validate the above-referenced claim.
Thank you. I will await your reply.
{Your Name}
{The address where you’d like them to send any debt validation documentation.}
This debt validation letter is much shorter and more succinct than other sample debt validation letters you might find on the internet. That’s by design. Less is more.
A long letter with tons of bullet points can actually telegraph you believe you owe some or all of the money, kind of like a guilty person on the witness stand that doesn’t know when to shut up.
A minimalistic letter communicates very simply, “I don’t know what this is. Prove your claim, otherwise close your file and go away.”
It is important to send your debt validation letter via certified mail (return receipt requested) because:
- You’ll have proof of delivery with a time stamp and the debt collector can never claim, “Gosh, we never received your debt validation request.”
- You’ll get their attention because only “serious” documents are sent via certified mail.
Do not send your debt validation letter via email, fax or regular first class postal mail because then there is no official proof of delivery.
Debt Validation Letter FAQs
What kind of documentation constitutes legitimate debt validation from a debt collector?
Look for a contract or promissory with your valid signature whereby you’re acknowledging responsibility for the debt. Also, look for statements that clearly support how the debt collector is calculating the amount of their claim. The documentation has to be legit. Don’t let them try to baffle you with BS by printing gibberish on a page, then claim it “validates” your debt when it does no such thing.
How much time does a creditor have to validate a debt?
There really is no specific time period in which a debt collector has to respond to your debt validation request. All the FDCPA basically says is that no further collection activity is supposed to ensue until or unless the debt collector validates their claim against you.
What if they fail to validate a debt?
According to the FDCPA, if you request documentation from a debt collector to validate their claim against you, they are supposed to stop all collection activity until they provide you with that documentation.
What if they successfully validate a debt? Now what?
Check the statute of limitations in your state. Each state has laws dictating how many years you can be liable for outstanding balances. Here’s a great statute of limitations resource.
If it turns out the debt is legitimate and it’s still within the statute of limitations, it's probably best to try and resolve the debt voluntarily via a lump sum discounted settlement amount or a payment plan. If you would like assistance with this, this is our area of expertise.
Should you dispute a debt with original creditor? How about a collection agency? How about a debt buyer?
You should dispute a debt any time you feel the claim against you is inaccurate. It is not recommended that the debt validation process be used when you know the debt is legitimate and your goal is to resolve the matter voluntarily and amicably. Keep in mind that as delinquent accounts age, they might get bought and sold numerous times and the record keeping could get sloppy. In that case, requesting to see proof of the debt might be a good strategy (even when you feel you might owe the money) because there’s a decent chance the documentation to validate the claim against you is lost or they won’t take the time to dig it out of their archives.
What happens if a debt collector ignores your debt validation letter?
Nothing really. If you haven’t heard back from the debt collector after sending them your debt validation letter, it’s possible they simply closed their file because they don’t have the documentation to validate their claim. So, mission accomplished.
Conclusion
Dealing with debt collectors can feel overwhelming, but a debt validation letter is a powerful tool in your arsenal. The guide above lays out everything you need to know — whether you're clearing up a case of mistaken identity, questioning an old debt, or dealing with a debt buyer.
Think of a debt validation letter as your way of politely saying, "Show me the proof."
Always remember, there are consumer protection laws in place to protect your rights. And one of those rights requires debt collectors to provide documentation upon request for any alleged debt they say you owe.
And if things get tricky, don't hesitate to reach out to us. We're here to help!
