What is a debt validation letter, and why is it so important?

Getting contacted by a debt collector can make anyone freak out, especially if it’s about an old, overdue debt that you might not recognize or remember. But before whipping out your checkbook (or going into witness protection!), take the reins. You have the right to make the collector prove that you owe the money. The law is on your side, and that’s where a debt validation letter comes in. 

Here’s how to use debt validation letters to make sure you really owe a debt, and to protect your rights under the law.

What is a debt validation letter?

A debt validation letter is a formal document that a debt collector is required to send that includes specific information about a debt that the collector says you owe. 

When bill collectors or debt buyers contact you, they should (but don’t always) send a debt validation letter or form. This debt validation letter is supposed to include enough information for you to identify the debt, determine if you owe the money, and decide what to do about it. Always get this verification before admitting (acknowledging) a debt, negotiating a debt, or paying anything to anyone.

Sometimes you will receive a debt validation letter in the mail before you ever hear from a debt collector. Other times, you might receive phone calls from debt collectors about debts that you don’t recognize, without receiving a debt validation letter upfront. If you are getting contacted by debt collectors, you have the right to request a debt validation letter. Ask for it during your phone conversations, but also be sure to send a written request. Debt collectors are required to provide you with a debt validation letter within five days of their first communication with you about a debt. 

Why it matters

Requesting a debt validation letter temporarily stops the collection process and makes debt collectors verify that you owe what they say you owe.

What is a debt validation notice?

A debt validation letter can also be called a debt validation notice. But the details are the same. Whether the debt collector calls it a “letter” or a “notice,” the same information is supposed to be included. A debt validation letter and debt validation notice are both there to help protect your rights. 

It’s against the law for debt collectors to report you to credit bureaus before contacting you. And when they contact you, they have to supply certain details or they can’t legally collect anything. These details are called validation information. Here’s a list of required information that you should look for on a debt validation notice or debt validation letter:

• A message saying that the communication is from a debt collector

• Your name and mailing information, along with the name and mailing information of the debt collector

• The name of the original creditor you owe (more than one creditor may be be listed)

• The account number associated with the debt, if applicable

• A breakdown of the debt balance, including interest, fees, payments, and credits since a specific date

• The current amount of the debt 

• Information you can use to reply to the debt collector, including procedures to exercise your legal rights and a tear-off dispute form with pre-written prompts for disputing a debt 

• An end date for a 30-day period for disputing the debt (if you don't dispute the debt within 30 days, the collector will assume that it’s valid)

Why it matters

You need these details because you shouldn't pay a debt unless you know that it’s yours, that the amount is correct, and that the collector has the right to pursue you for the money.

How does a debt verification letter work?

If you get a debt validation notice but it’s missing some information or you think the details are wrong, you can make the collectors prove they have the right to come after you for the money. Don’t acknowledge that the debt is yours until you verify it. You have the right to send a response in writing, called a debt verification letter, asking the debt collector to provide more details about the debt.

Debt collectors sometimes make mistakes or receive bad information. They might try to collect the wrong amount, collect debt that’s too old to legally collect, or collect from people who don't owe the debt. Sending a verification request in writing can help you avoid paying a debt that’s not yours or that’s uncollectible.

You don’t have to go to law school to learn how to create a debt verification letter. The Consumer Financial Protection Bureau (CFPB) provides a sample debt verification letter you can download and personalize. If you send a verification request within 30 days of being contacted, the debt collector must stop trying to collect the debt until it sends you the required information listed above.

Why it matters

Sending a debt verification request helps you decide what to do: ignore the debt, dispute the debt, pay the debt, or seek debt relief.

How to send a debt verification letter

Sending a debt verification letter puts you in the driver’s seat and puts the bill collector on notice that you’re not a pushover and that you’re ready to stand up for yourself.

If the debt validation notice from the debt collector has missing details, incorrect or outdated information, be sure to send your debt verification letter as soon as possible. 

In your debt verification request that you send back to the debt collector or debt buyer, you’re allowed to ask for a range of information. This includes the nature of the original debt—when you incurred it, who loaned you the money, and when you stopped making payments. Collectors and debt buyers also have to prove that they have the right to collect from you—that they purchased that right, or that they were hired by the original creditor to collect the debt. They also must be licensed to collect debt in your state.

Use these details to determine if the debt is yours and if the balance shown is correct. A debt is too old to be collected—time-barred— if the statute of limitations has passed. That’s the deadline for suing you, and it ranges from two to 10 years depending on the type of debt and the state where you live. If you acknowledge the debt, you might restart the clock.

Tailor the CFPB’s sample letter to your situation, sign it, and keep a copy for your records. Send it to the address provided by the collector in your initial debt notice. You may want to send it with proof of delivery. 

Why it matters

Collectors can take action against you immediately, including filing a lawsuit—unless they receive a debt verification letter from you that pauses the process. 

What if you don’t get the information you asked for?

You can ask for many details in your debt verification letter, but you might not get them all. 

Why would a collector not give you all the details you asked for? It might not have easy access to the data. Debt buyers often purchase old debts and may not have all the information you want. And some shadier collectors may know the debt is too old or possibly not even yours. 

Sending a debt verification request is not your only defense against debt collectors. You can dispute a debt even if more than 30 days have passed after the initial notice. Or you may ignore it if you believe the debt is time-barred. You can make a written request for the collector to stop contacting you. And you can dispute the collection with the major credit bureaus. 

Why it matters

If you believe that a debt collector isn’t following the law, you can file a complaint online with the CFPB or contact an attorney. You might be able to sue the collector or raise a defense if the debt collector sues you.