Debt Validation Letter

Debt Validation LetterHave you ever heard of a debt validation letter? Most people who are in credit card debt have done some research online and come across articles that mention debt validation letters. These letters, if used properly, can provide a huge amount of protection to consumers with creditors trying to collect on their accounts. Debt validation letters are quite a bit different than debt verification letters. These two types of letters often are confused with each other, which can lead to problems later on in the collection process.                            

First lets discuss why debt validation letters are so important. To understand their importance we must first understand what the purposes of these letters are. The history of the credit card debt collection industry is not a very pretty one. It is riddled with stories of companies wrongfully attempting collections on people who never had taken out credit card debt in the first place. Over the years hundreds of thousands of dollars have been collected wrongfully and finally the government passed some legislation that put a stop to these illegal collection practices.

The legislation that was passed is known as the FDCPA or Fair Debt Collection Practices Act. This act requires any creditor or debt collector to validate to the debtor that they are collecting on the right account. Without the FDCPA, consumers would not have legal protection against wrongful collection efforts.

By sending properly written and timely debt validation letters to creditors or debt collectors that are trying to collect on your accounts, you can force them to provide validation. Without providing this validation, the efforts of the debt collector or creditor will have to be stopped unless they want to risk a federal lawsuit.

The problem with validating credit card debt is that if you do not request validation from your creditor or debt collector, they will not validate your account. In fact creditors and debt collectors will try to steer you clear of thinking that you can validate your account. This may seem odd to you that your bank or creditor would be intentionally deceptive to you as their client. Trust me, it happens all the time.

So why do creditors or debt collectors want to keep their clients away from validating their debt? Well to be honest, the majority of clients who are making payments on their credit card balances are doing so with no legal obligation. This might sound crazy to you but from a legal perspective it is absolutely true. Another interesting fact is that most debt collectors do not have the information that is required under the FDCPA to validate an account that they are attempting to collect on. Knowing this, if you are dealing with a third party debt collector, you need to send a debt validation letter immediately to free yourself from their collection efforts!

The question now is how can you become an expert at sending debt validation letters in order to protect your financial situations. The best way to gain this expertise is through the use of debt validation letter templates. By using well written and properly worded template letters, you can ensure that your creditor or debt collector will be required to validate all aspects of your debt or stop their collection efforts altogether.