Debt validation is the process of forcing debt collectors to verify the validity of the debt in question, as well as their attempts to collect. The right to dispute the debt and receive validation are part of the consumer’s rights under the United States Federal Fair Debt Collection Practices Act (FDCPA) and are set out in §809[1] of that act. Under the FDCPA, the collector bears the burden of proof.

For legal purposes, any entities that are not original creditors – including lawyers – are considered collectors. Lucky for you, collectors must adhere to the guidelines of the Fair Debt Collection Practices Act (FDCPA), which will be the basis of your debt validation proceedings. It applies even to those collectors who legally have bought your debt (i.e. they still do not become your “creditor”.)

Generally, debt collectors must be able to prove that:

1. They own the debt legally and have been authorized to collect it from you.

2. The full amount of the debt that they are pursuing is accounted for and documented by your original creditor.

3. They can provide a copy of the original legal contract that you signed with your creditor.

The following is a step-by-step guide of actions to take to demand your right to debt validation:

• Send the collections agency (or lawyer, etc.) a certified debt validation letter asking them to validate your debt. Allow them 30 days to respond to your request. If they fail to do so, they are in violation of the law.

• Meanwhile, if you do not believe they have the right to collect from you, send the credit bureaus (Experian, Equifax, and TransUnion) a certified letter disputing collections actions on your report.

• If the collection agency responds in writing with proof of the three FDCPA requirements listed above and you wish to pursue your dispute further, you may find out whether or not they are authorized to collect in your state. If they are not, write another letter stating the violation and threaten to sue if they do not both cease collections efforts and alert the credit bureaus.

• If the collection agency responds in writing and does not provide sufficient proof, write them another letter specifying their violation of FDCPA. Tell them either to cease collections efforts and alert the credit bureaus or you will file a lawsuit. Allow at least two weeks for a response, and then follow through with your threat in small claims court.

Most collectors will give in before you will have to get the law involved, and some cases may be much easier than others. If a collector has bought or has been assigned your debt, they inherently do not “own” your debt and therefore cannot prove your obligation to pay (unless there is a clause in your original contract). Similarly, unqualified and deceitful collections agencies probably will want to rid themselves of your situation as quickly as possible.

It should be noted that creditors may take legal action against you, so it almost certainly is not in your best interest to just ignore a debt that you think cannot be proven. If you fail to take action and demand proof (or lack thereof) from a collections agency, it really does not matter what you believe to be just and accurate. You still may find yourself with a judgment against you.

Attempting debt validation might sound a bit daunting, but the financial benefits that you may gain from enforcing your rights certainly make it worthwhile for many people. FDCPA and contract laws are usually on your side. And if a collection agency lacks proof of your obligation to pay, well then…you might as well not.