When to Request Debt Validation From a Debt Collector
by Michael
This topic is deserving of much more time than I am going to give it in this post. I am covering this briefly due to the question I received yesterday after publishing part of the Debt Bytes charge off series where one of the bullet items states:
“Avoid some of the nut job advice on the internet about handling this stage of collection”
For context, read the link above.
Requesting Validation of debt is a consumers right under the Fair Debt Collection Practices Act (FDCPA). More specifically section 1692g of the Act.
Validation requests have absolute applicability. You have the right to ask that a debt be validated if you do not think you owe it, or the amount asserted as due and owing is in question. In fact, your right to dispute a debt and request it be validated is required to be spelled out to you in virtually every collection letter you may receive from a collection outfit. That makes it pretty damn important!
I do not disagree with those who point to the importance of it. I absolutely disagree with nut jobs on the internet who wax on about how you should always request validation NO MATTER WHAT!
Here is the deal with debt validation requests by someone who wants to resolve a debt:
Don’t do it. It can back fire.
What do I mean by back fire?
Let me be clear here; I am talking about a person who wants to RESOLVE a debt placed with a debt collection agency just after charge off who knows they legitimately owe the debt. When sending in a debt validation request in response to a dunning letter you receive from a collector, who is simply an assignee of your creditor, you may see your file get immediately kicked back to the creditor. Your creditor may then decide to escalate your account for more aggressive action such as placing the account with a law firm, which then can lead to being sued in order to get you to pay.
See, it backfires. Not all the time, but do you take that chance if all you want to do is get the debt behind you and move on with your life? Settling the debt while it is with the debt collection agency would allow you to put the matter to rest.
I should point out that requesting validation of a debt can be a useful tool when navigating tough financial times. For someone who cannot access the needed money, or commit to a plan due to limited resources, or who does not want to file bankruptcy, or needs to delay filing for some reason, debt validation has its place. Also, disputing a debt or requesting validation has great applicability when dealing with a debt buyer.
As an aside:
Consumer advocate organizations have been vocal about the need for the Fair Debt Collection laws to be updated. The FTC announced the need to update the law. The FTC effectively subpoenaed the largest debt buyers in the nation earlier this year. Collection laws and practices are being looked at in detail. This scrutiny will almost certainly result in changes to the 30 plus year old consumer protection law, bringing it current with the realities of today’s society and advances in technology. I will go out on a limb and suggest that changes to federal debt collection laws will lead to changes in how debts are assigned and what information gets passed on to a debt buyer. As a result, debt buyers will more readily be able to validate debts upon request.
If you would like to ask a question about unpaid debt and what options may be best considered for dealing with your circumstances; Click here and ask your question. Your question will be answered by an experienced professional for FREE.
8:18 pm
I am so upset. I am trying to pay off all of my old debts. I called a collection agency to pay an old bill. I was expecting to owe around $400. Then they told me I owe over $3500. The bills that they mentioned are no where on my credit report, even though they said that they are. I insisted to pay the one bill that was on my credit report, and told me to send them the information about the other information. Please tell me what I should do about these old debts. Am I now in danger of them reporting all of this to the credit bureau? I have no idea what to do.
8:31 pm
Hi Angela,
I will be better able to give you the feedback you need by getting more details from you.
How old are the accounts the debt collector is trying to collect on? When did you last make a payment on them? What state do you live in? Who were the debts originally owed to?
What to do about old debts will depend on how old they are, what you can do (financially), what your goals are…. even the state you live can come into play.
If you can answer these questions in a comment reply below, I will be able to provide some helpful feedback and things to consider.
8:35 pm
Thanks for Responding. I live in Kentucky. There are 3 bills from 2003, and she said there was a judgement placed against me for those. There are 3 bills from 2006, and 1 from 2008. Like I said before, none of these are listed on my credit report. I was in shock when she brought them up. I am trying to do the right thing and pay everything back, but I don’t have this kind of money. All of these debts are medical bills.
10:26 pm
Thanks Angela,
The ones from 2003 are past the 7.5 year time period for them to appear on your credit report. But, how is there a judgment against you without you knowing about it? Do you know what court the judgment originated from?
The bills from 2006, if on your report now, would fall off next year, or sometime in 2013 (depending on month in 2006 they went delinquent).
Is the bill from 2008 the one appearing on your credit report?
Are you thinking about settling some of these old debts for less than the balances owed?
9:14 pm
I have no idea what court they originated from. My Ex-Husband took care of our bills, and I am just now finding out about these issues. I had no idea of any judgement. I want to pay off my debts, but of all the bills she mentioned from 2006, only one is on my credit report, and I paid it in full. I am so afraid they are going to turn around and have all of this put on my report and it ruin my credit even further. The bill from 2008 is not on the report, either. She told me I could not settle any of these debs, because they don’t allow settlements. I am terrified. I called to do the right thing, and now I’m afraid I made my situation worse.