What Is A Debt Validation Letter?

Many people have heard of them and the internet is full of stories about them, but the question persists. What is a debt validation letter? Let's start with the simple definition and go from there. In it's simplest form, when you consider what is a debt validation letter, it is a request for a debt collector to prove that you owe money. Let's expand that a little bit and get specific. We will go through a fictional example to better illustrate what is a debt validation letter. In our example, you owe ABC Bank $5,000 for a credit card. If you were to send a request proving you owed the money to them, they would be able to send you a copy of the credit card agreement they signed when they issued the card and copies of signatures for your purchases. Why? they are the original creditor. In this case, you know you owe ABC Bank the money. If we take this to the next level in our consideration of what is a debt validation letter, we assume that you can not pay ABC Bank the $5,000 plus interest owed. ABC Bank has two choices. They can either hire a collection firm to try and collect the money on their behalf, or sell your balance due to a debt collection agency that buys unpaid debt for pennies on the dollar. Either the collection firm or the debt collector will begin calling you to get the money. When you think about what is a debt validation letter, it becomes applicable at any point after this. If ABC Bank has hired a collection firm, and you send them a debt validation request, they will be able to contact ABC Bank and get a copy of your signed credit agreement. Case closed. On the other hand, if ABC Bank sold the debt to a debt collection agency, they do not have the same level of communication within ABC Bank. If you send them a debt validation request, they will not send back anything with your signature. They will send a one page letter that says you owe the 123 Collection Agency $5,000. This is not a legitimate answer from them. They must, by law produce either a copy of your signed credit agreement, or their agreement with ABC Bank that they purchased your specific debt, including your original account number. If they do not, and many times it is can not, produce one of those tow things, it is not a legal response. In court, they would lose because they can not show a paper trail that proves you owe them money. So then what is a debt validation letter. It is a tool you can use to prevent collection agencies who have bought your debt from getting your money. It is something you can look into if you are being pursued by debt collection agencies. It is a legal instrument to help you fight off the debt collectors in court. It is a worthwhile weapon to consider when you deal with collection agencies. What is a debt validation letter? It is a simple form letter. It does not have to be long and wordy. Simply state who you are and ask for a validation of the debt they claim you owe. State that they must include any agreement sign by you that says you will pay them money or any agreement that gives them the right to collect money from you. Be polite and never admit you owe anything. rnAll of this answers the question of what is a debt validation letter. We hope it is helpful!