Definition
Debt validation is a consumer protection process established by the Fair Debt Collection Practices Act (FDCPA) that requires third-party debt collectors to verify that a debt is legitimate and that they have the legal right to collect it. When you receive a collection notice, you have 30 days to request debt validation in writing. Once requested, the collector must provide documentation proving the debt is yours, the amount is correct, and they have the authority to collect it. During this validation period, collection activities must cease. If the collector cannot validate the debt or fails to respond, they cannot legally continue collection efforts, and in some cases, the debt may be removed from your credit reports.
Frequently Asked Questions
What information should be included in a debt validation letter?
A debt validation letter should include your name, address, the collector's information, the account number in question, a statement that you're disputing the debt and requesting validation, and a request for specific documentation like the original signed contract, proof of the debt amount, and evidence that the collector has legal authority to collect.
Does requesting debt validation restart the statute of limitations?
No, requesting debt validation does not restart the statute of limitations on a debt. However, certain actions like making a payment or acknowledging the debt as yours can restart the clock in many states.
Can I request debt validation for old debts?
You can request validation for any debt, but the 30-day period applies after the collector's first communication. For old debts, it's best to send a validation request immediately after a collector contacts you about the debt, even if it's been sold multiple times.
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