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Debt Validation Letters

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Starr79
Valued Member

Debt Validation Letters

What is the real story on debt validation letters? I have seen some make strong demands which people say they have to "prove you owe", but then others say they don't have to prove anything and only need to tell you the OC name and amount you owed them. What's the truth??

Message 1 of 7
6 REPLIES 6
MarineVietVet
Moderator Emeritus

Re: Debt Validation Letters


@Starr79 wrote:

What is the real story on debt validation letters? I have seen some make strong demands which people say they have to "prove you owe", but then others say they don't have to prove anything and only need to tell you the OC name and amount you owed them. What's the truth??


Here is the entire section of the FDCPA dealing with validation.

 

809 Validation of debts

 

(a) Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing --

 

(1) the amount of the debt;

 

(2) the name of the creditor to whom the debt is owed;

 

(3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;

 

(4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and

 

(5) a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.

 

(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.

 

(c) The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer.

 

 

Message 2 of 7
RobertEG
Legendary Contributor

Re: Debt Validation Letters

What constitutes proper debt validation is pretty much up to the courts to decide.

FDCPA 809(b) simply states that the debt collector must cease collection of the debt “until the debt collector obtains verification of the debt… and a copy of such verification….. is mailed to the consumer by the debt collector.”  The statute does not define what constitutes “verification,” of how the debt collector “obtains verification of the debt.”  Interpretation is thus left to the courts.

 

There are of course guidelines issued by various legal jusridictions, some binding precedent within their jurisdictions, and others not, as to what constitutes proper “verification” under the FDCPA.  Some require information usually required only in a legal discovery process, such as documentation from OC records proving the owing of the debt, while others state simply that a statement of the components of the debt is adequate.

The FDCPA says that they must cease collection efforts after receiving a timely DV, and may not resume until validation is sent. If what is sent does not meet the standard to be considered validation, then validation was not sent. Validation is not what the consumer says it is, nor is it what the debt collector says it is. Validation is what the COURT says it is

I think most CAs will fold up and go away when confronted with what appears to be an informed consumer. Its simply too easy to pick on the poor smuck who just coughs up money. Those CAs that are willing to litigate still expect the consumer to not show...and therefore they'll get a default judgement.

IMHO, the purpose of debt validation is to chase away the CAs that don't want to work too hard, and to catch the others in FDCPA or FCRA violations so that you can take THEM to court.  The point is...it depends on who wants to put the most effort into it...you or the CA.

 

If you feel that the CA has not provided validation, sue and let the court decide.

...there are some court cases references, which is what would ultimately settle the question. The point is that a consumer (or his/her attorney) would have to come to court armed with those citations in order to convince an otherwise FDCPA/FTC/FCRA ingnorant judge of what other courts have decided.

Its a pretty sad state of affairs in that no real congressional guidance has been provided.-----so ultimately the courts decide,inconsistently, on a case by case basis.

Message 3 of 7
Starr79
Valued Member

Re: Debt Validation Letters

Thank you both. Should I send the deb validation to the new CA only or to the one that just sold it off?

Message 4 of 7
Starr79
Valued Member

Re: Debt Validation Letters

Sorry. I had another thread and didn't realize this didn't have all the info. Basically If a collections company sold my acct to another, while i was disputing with the CRA, should i send a DVL to both or just the new one?

Message 5 of 7
MarineVietVet
Moderator Emeritus

Re: Debt Validation Letters


@Starr79 wrote:

Sorry. I had another thread and didn't realize this didn't have all the info. Basically If a collections company sold my acct to another, while i was disputing with the CRA, should i send a DVL to both or just the new one?



I would send one to both. The old CA should delete because it's the right thing to do but whoever said the CA's do the right thing? 

 

 

 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Message 6 of 7
Starr79
Valued Member

Re: Debt Validation Letters

Ok I am starting my letters now. Thanks for the advice. Someday I hope to have my EQ 835 also Smiley Happy

Message 7 of 7
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