Debt Validation Letter

Debt validation letter summary:

• Debt validation letters include legally required information that debt collectors must provide when they first contact you about a debt.

• A debt validation letter must include specific information about the debt and the debt collector.

• After you receive a debt validation letter, you have 30 days to dispute the debt. After 30 days, the debt collector can assume the information is correct.

Debt validation letter definition and meaning

A debt validation letter is the information that could prove that a debt is legitimate and belongs to you. On the other hand, it could also prove the debt isn't yours. 

Key concept: Debt validation is required to prevent debt collectors and scammers from attempting to collect money you don't owe.

More about debt validation letters

The truth is, anyone can say that you owe them money. But that doesn't mean you actually do.

When a debt buyer or debt collector (or someone calling themselves a debt collector) contacts you, laws exist to protect you from abuse. One law requires debt collectors to prove the details of the debt they say you owe. Debt collectors are supposed to do this by sending you a debt validation letter (also called “debt validation notice”). 

Sometimes, the first time you hear from a debt collector is when they send you a debt validation letter to prove you owe money. The debt validation letter will tell you how much they say you owe, and include other important details about the debt. If a collector doesn't include debt validation information in their initial contact, they have five days from the time they make contact to provide you with validation. Debt collectors can’t continue to try to collect the debt until they verify the debt. You’re also allowed to send a debt verification request in writing to ask the debt collector to provide a debt validation letter or other information if important details about the debt are missing or incorrect.

Debt validation letters: a comprehensive breakdown 

The Fair Debt Collection Practices Act (FDCPA) requires debt collectors to provide you with detailed information regarding the debt they're attempting to collect. This detailed information is called a debt validation letter (or “debt validation notice”). 

Debt validation letters must include:

• A statement that the letter is coming directly from a debt collector

• The collection agency's name and address

• Your name and mailing address

• The name of the creditor(s) you owe money to

• The account number associated with the debt

• The amount owed, including fees, payments, and credits

Debt validation letters and your rights

Let's say you read through the debt validation letter and see that the collection agency is trying to collect on a debt you paid off years ago, or you don’t recognize the debt at all. Respond in writing as soon as possible to dispute the debt and explain why you don’t owe the debt, and keep proof that you responded. You only have 30 days to dispute that you owe the money or anything else that’s wrong with the notification.

After 30 days, if you don’t dispute the debt, the debt collector can assume that the information is correct. At this point, the debt collector is allowed to move forward with the collection process. 

Debt validation letters and original creditors

The Fair Debt Collection Practices Act (FDCPA) and its rules about debt validation letters only apply to debt collectors and debt buyers—not to original creditors. If you’re being contacted by original creditors, such as your current credit card company’s in-house collections department, you shouldn’t expect to receive a debt validation letter. But even without the requirements of a debt validation letter, original creditors are still supposed to treat you fairly and respectably. They should still provide you with reasonable details about the debt and follow any relevant state laws.