Debt Validation
Your Rights
Under the FDCPA, you have the right to "debt validation". This is demanding that the creditor reporting the information prove to you that the account is really your responsibility and that the balances, etc are accurate. A collection agency must also prove that they have legal right to collect the debt.
The collection agency must STOP all collection activity, including reporting and verifying, until they supply proper validation to you after a written request. Although no time limit is specified for them to validate, they cannot continue collection activities until they provide such. Sometimes, collection agencies will stop collection activities and return the account to the original creditor rather than validate. (This is perfectly legal.)
NOTE: You do NOT have the legal right to validation under the FDCPA when dealing with an original creditor.
They may supply validation at their option, but are not required to do so. However, you do have the right under the FCRA to dispute directly with an original creditor any information reported that you feel is incorrect. This can be found in section 623. Once they have received your dispute, they must investigate the reported info and, they must also report the account as disputed with the credit reporting agencies.
You may also have additional rights under the FCBA (Fair Credit Billing Act), and possibly your state's laws.
If you demand validation from a creditor who is already listing a derogatory tradeline on your credit report, they are required to note that account as "disputed by consumer" (or similar language). They may NOT place a new listing, or verify a current listing with the CRA until they have provided you with validation.
It is most always a good idea to send validation demands via CMRRR. (Certified Mail Return Recipt Requested) as this gives you proof, in the form of a recipt ("green card") that your demand was received, and on what date.
