Debt Validation

Debt validation summary:

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

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

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

Debt validation definition and meaning

Debt validation 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 designed to prevent debt collectors and scammers from attempting to collect money you don't owe.

More about debt validation

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 verify the details of the debt they say you owe. 

Sometimes, the first time you hear from a debt collector is when they send you a letter to prove you owe money. The letter will tell you how much they say you owe. If a collector doesn't include validation in their initial contact, they have five days from the time they make contact to provide you with validation. They can’t continue to try to collect the debt until they verify the debt.

Debt validation: 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 debt validation. 

Debt validation notices 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 and your rights

Let's say you read through the notice 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, 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, the debt collector can assume the information is correct. 

Debt validation and original creditors

The FDCPA and its rules about debt validation don't apply to original creditors. That doesn’t mean they won’t give you details about the debt or that state laws don’t apply.