Please Explain: Debt Validation

[Anonymous]

How does debt validation differ from disputes?

Heard something about creditors not being able to validate debt if they no longer have the originol contract? Thanks in advance for any help.

[2b2rich]

Do you mean the actual process, or the reasons for doing either?
With a dispute, you can do this with anything about a tradeline that isn't correctly reporting.  From a date, a balance, whether it's even yours or not.

Validation is something that you can do even if a tradeline is reporting correctly.  You may not remember incurring this debt in the past or it may have belong to another company and you want to know if you really owe this JDB the money for a collection.  You can request that they validate that they own the debt by showing you proof that you now owe them.  In the case that you don't remember incurring a debt, you would ask them to validate that by providing documents or other proof that is sufficient under the FDCPA

[2b2rich]

Ok, maybe I see what you're asking now.  

I think it's different for an OC reporting, but if a CA is reporting a collection, you can dispute it and if they can't 'verify' it as yours, then it has to be removed.  I'm not sure that an original contract is needed to verify that it's yours though, maybe someone else can add to this.

Validate is basically doing this in the beginning, within 30 days after the CA sends you the notice. (Unless you're in TX, then there is no 30 day window)

[Anonymous]

The main difference is that they are pocesses under two different laws. Debt Validation is a process under FDCPA, which regulates debt collectors and their practices. It does not in any way, compel removal of a report. If timely, it bars all collection activity until validation is provided. There is no time limit on providing the validation. Validation does not require a CA to provide an "original contract".

Disputes, OTOH are a process under FCRA which regulate credit bureau reporting. It is used to correct inaccuracies, and requires you to tell the CRA's (or the CA/OC reporting) the nature of the inaccuracy. If the inaccuracy cannot be corrected then it must be deleted. The CRA's and furnishers are under a 30 day clock with regards to disputes.

[Anonymous]

Thank you for the information.

I ask because a friend of mine recently sent DV letters out to all three CB's which resulted in multiple collections being removed, the oldest one being from 2008.

[RobertEG]

The debt collector is not required to reply to a DV.  They are required to discontinue active collection on the debt until they have first provided the requested validation if the DV is timely..

If they receive a timely DV and determine that either they cannot validate or dont want to take the time to acquire adequate information to support their statement of verifixcation of the debt, they can choose simply not to respond, or they can choose to voluntarily delete their reporting and move on to easier collections.

The DV process itself has no requirment for deletin based on lack of validation.

[Anonymous]

So since I am way past the initial communication (3 years?), I cannot request debt validation. What else can you do to try & get more info on the debt they are trying to collect. I'd love to be rid of Midland and Portfolio. 

[damnedanddetermined]

RobertEG....if a CA/JDB cant validate I owe them money, then why should I pay them? This is kinda confusing for me. Just this week, Ive been trying to round up a collection...dont know who actually  owns it, dont know how much, dont know who to pay. Some are so shady, that if you dont have documentation or proff, youll be paying til eternity. Why arent they made to validate?