The Debt Validation Process and How It Helps You Verify Obligations

The world of debt is relentless and makes it difficult to escape its grasp financially and psychologically. Your way of managing debts can quickly become burdensome with never-ending calls from collection agents, threats of lawsuits, and constant reminders of payments.

If you are battling a financial obligation you are not sure about, it’s time to know what your rights are and how debt validation works. Debt validation is one of the most effective ways to make sure you are not paying for debts that do not belong to you or that have been incorrectly recorded. Let’s find out how this process works, its importance, and how it helps you authenticate your responsibilities.

What is Debt Validation?

Debt validation refers to the consumer’s legal right, which allows them to request proof of debt and its origin. A debt collector who contacts you is legally obligated to show you the debt’s proof in writing and strong evidence that they can collect this debt. This process prevents one from being a target of scams, mistakes, and aggressive collection abuses.

When contacted by a debt collector, you can ask for proof of the debt, which includes:

1. The amount owed: You have the right to know the debt’s exact balance.

2. The creditor’s name: An entity that gave the debt.

3. Documents of the debt’s origin: It includes, but is not limited to, contracts detailing the debt, account statements, and any records illustrating that the borrower willingly accepted the debt.

There should be no doubt that debt validation is a vital process as it helps ascertain that any assertions made by the debt collector are valid, and more importantly, it enables one to challenge false or fraudulent claims.

How Does the Debt Validation Process Work?

If you are contacted by a debt collector, you have the legal right to request validation. Here’s how it works:

Step 1: Receive a Debt Collection Notice

Initially, a debt collection agency will send you a written notice, which outlines the amount owed, the original creditor’s name, and payment instructions.

Step 2: Send a Debt Validation Request

You may ask for validation within 30 days of receiving the collection notice. This request must be in writing. Remember to mention that you are requesting validation of the debt and add your information for follow-up. The debt collector must cease all collection efforts until they provide proof of the debt.

Step 3: Wait for the Collector to Provide Verification

Upon receipt of your request, the collector is obliged to reply to it within 30 days. They won’t be able to pursue collection activities such as calling you or reporting the debt to credit bureaus during this period.

Step 4: Review the Documents

The collector will give you evidence of the debt, like original contracts, statements, or account history. You will have to review the documents very carefully to make sure that the correct amount is asked from you and the creditor is correct.

Step 5: Dispute the Debt if Necessary

If you believe that the debt is incorrect, incomplete, or forged, you can dispute it with evidence such as receipts of the payment or proof that a settlement has taken place. If a debt-collecting entity fails to provide adequate proof, it should stop all collection efforts and get the debt removed from your credit report.

How Debt Validation Helps Verify Obligations?

Several factors necessitate asking for validation of any unfamiliar debt. Let’s have a look how debt validation helps verify obligations:

1.  Protects You from Fraudulent Claims

Unfortunately, debt collection scams are quite common. One of the ways scammers cheat people is by imitating legitimate debt collection agencies. They intimidate and pressure potential victims to pay debts they do not owe. Scammers typically claim that a payment is due to a creditor you do not recognize. They even threaten to take legal action.

An effective way to ensure you do not fall victim to such scams is to ask for debt validation. A credible debt collector will provide you with the requisite documents that legitimize them as the right people to collect the debt. Such debt collection companies will positively respond to your request for validation.

2.  Confirms the Debt Is Legitimate

Even the financial world is not immune to mistakes. For example, a debt may be transferred from one collector to another, or one of the collectors may have made mistakes when reporting the information to credit bureaus. Moreover, there are instances where an individual is contacted for a debt that was paid off, settled, or does not even belong to them.

By requesting validation, you can make sure that you are being asked to pay an authentic debt and not an erroneous one. The debt validation process places the burden on the creditor to prove their legal right to collect the debt. This can uncover mistakes or cases of mistaken identities.

3.  Ensures You are Not Paying for Old Debts

Every state has a law that governs the maximum period for collecting debts. Creditors might be unable to initiate legal action against you for unpaid debts after a specific period. If a debt goes past the limit, it is termed as “time-barred.” It means that you cannot be legally obligated to pay it back.

The debt validation process allows you to verify whether the debt is too old to be collected. If it is, then you should not worry about paying it back. You can also ask for privacy from collectors trying to harass you for payments. One of the missions of Triumph Debt Relief is to educate the public about their consumer rights so they do not end up paying debts that they are not required to pay.

4.  Gives You Time to Review and Dispute the Debt

Debt collectors usually work under strict deadlines, putting pressure on you to take immediate action or face a judgment against you. Requesting debt validation, however, might buy you time to review the debt in detail and determine its validity. During this period, debt collectors are prohibited from pursuing collection activities until the debt has been confirmed.

If the collected debt is deemed false, it can be disputed, and all further legal actions and complications can be avoided. You might occasionally have your credit history completely cleared of invalid debts. There are instances where invalid debts are entirely removed from the borrower’s credit history.

Protect Yourself with Debt Validation

In the world of debt, safeguarding yourself from mistakes, errors, and fraud is paramount. The debt validation process is a solid opportunity to ensure that any debts you are asked to settle are indeed correct. Always ask for validation if you are unclear about your debts.

Triumph Debt Relief supports having a plan to manage your financial future confidently. A careful audit to review, verify, and challenge debts purported to be yours but aren’t can save you time and money, not to mention stress.

Read More: Debt Elimination Strategies That Work to Help You Live Debt-Free