Debt Validation Letter: What It Is and How to Get One

A debt validation letter provides basic information about a debt someone is trying to collect from you. Federal law requires debt collectors to send you one before contacting you or within five days of first contact. You need to know your rights.

What Is a Debt Validation Letter?

Creditors often sell unpaid debts to debt collectors or collection agencies. Federal law requires these third-party collectors to give you specific information about any debt they collect. They must send you a debt validation letter (also called a debt validation notice).

Debt collectors must send this letter before contacting you or within five days after first contact.

What Does a Debt Validation Letter Look Like?

The Consumer Financial Protection Bureau (CFPB) provides a sample debt validation letter. The CFPB is a federal agency that protects consumers from debt collector harassment and misconduct. The sample contains all federally required information, including a tear-off portion for disputing the debt.

Different collection agencies use different formats. But they must provide all required information by law.

How Do You Get a Debt Validation Letter?

Debt collectors should send you a validation letter automatically. But if you haven’t received one within 10 days after first contact, request one.

Make your request in writing if you know the debt collector’s mailing address or email. Otherwise, request it by phone during their next contact.

Document when and how you requested the validation. You may need this evidence if you file a complaint against the collector.

If the debt collection agency doesn’t respond to your request, they’re violating the Fair Debt Collection Practices Act (FDCPA). You can report this violation to the CFPB or your state’s attorney general’s office. You can also bring legal action against the debt collector. You may recover damages up to $1,000 per violation, plus attorneys fees and court costs.

What Should a Debt Validation Letter Include?

Federal law requires every debt validation letter to include specific information:

• Notice that the correspondence is from a debt collector
• The current debt amount as of the notification date
• Any account numbers associated with the debt
• An itemized accounting including interest, fees, payments, and credits
• The name of the creditor that owns the debt
• Notice that you can dispute the debt within 30 days
• Notice that if you don’t dispute within 30 days, they’ll assume the debt is valid
• The debt collector’s name and address

Depending on your state, additional information may be required. Many states require collectors to tell you if the debt is time-barred.

If you don’t think you owe the debt or need more information, submit a response. Use the detachable form or write your own letter. Your response should say whether you’re disputing the debt, requesting more information, or both.

If your validation letter is missing required information, respond and request it. You can also file a complaint with the CFPB.

What Is a Debt Verification Letter?

The terms debt validation and debt verification are often used interchangeably. A debt validation letter is the initial notice a debt collector must send you. A debt verification letter is your response requesting more information or disputing the debt.

You can use the tear-off form attached to the debt validation letter. Or you can write your own debt verification letter.

Debt Validation vs. Debt Verification Letters

A debt validation letter comes from the debt collector to you. It initiates their collection attempt and includes required information about the debt.

A debt verification letter goes from you to the debt collector. You use it to request more information or dispute the debt’s validity.

Why Should You Send a Debt Verification Letter?

You don’t have to send a debt verification letter. But it’s often a smart move, especially if:

• You don’t recognize the debt
• You don’t recognize the creditor’s name
• You don’t recognize the debt collection agency
• You don’t agree with the amount owed
• You think the debt is past the statute of limitations

Trust your gut. If something feels off about the debt collector, make them confirm they and the debt are legitimate. Working with our partner Solo can help you respond effectively to collection attempts.

When Should You Send a Debt Verification Letter?

When you receive a debt validation notice, the validation period begins. Under federal law, the validation period ends 30 days after you receive the notice. The validation notice should tell you the specific end date.

The validation period matters because if you send a debt verification letter during this time, the debt collector must stop all collection efforts. They can’t resume until they provide the required information or respond to your dispute.

Send your debt verification letter using certified mail with return receipt requested. You’ll have proof of when you sent it and when they received it.

You can still send a debt verification letter after the validation period ends. But the collection agency can continue trying to collect the debt.

What Information Can You Request in a Debt Verification Letter?

Many people request the original creditor’s name and address. But you can ask for any other information about the debt:

• Why the debt collector believes you owe the debt
• The age of the debt and when the last payment was made
• Whether the statute of limitations has expired
• When the debt collector purchased the debt
• Whether the debt collector is licensed to collect in your state
• Any other relevant details about the debt

Information like this helps you confirm the debt’s validity. It helps verify the debt belongs to you and that you haven’t already paid it. It also helps you avoid debt collection scams.

One caveat: You can request anything in a debt verification letter. But the debt collector isn’t necessarily required to provide everything. If you file a complaint or lawsuit against a debt collector for violating the FDCPA, a judge will decide whether they provided enough information.

How Do I Respond to a Debt Validation Letter?

First, send a debt verification letter to determine whether the collection agency is legitimate. Confirm the debt is valid. Report any suspected scammers to the CFPB. If the debt collector is legitimate, your next steps depend on whether you believe the debt is valid.

The Debt Is Valid: What Do I Do Next?

If the debt is valid and you owe it, reach out to the collection agency. Try to set up a payment plan. You can also propose a debt settlement agreement to pay less than the full amount. A lump-sum payment works best for settlements.

If you can’t repay the debt, discuss your debt relief options during a free consultation. A nonprofit credit counseling agency can help you with budgeting and getting your finances in order. Our partner Cambridge Credit Counseling specializes in creating affordable payment plans. Credit counselors can help with common debts like credit card debt and medical bills.

I Don’t Think the Debt Is Valid: What Can I Do?

If a debt collection company is trying to collect a debt you don’t believe is valid, you can dispute the debt. You must notify the debt collector that you dispute the debt and explain why:

• The debt amount is wrong
• The debt isn’t yours (wrong person)
• You already paid the debt
• The debt was discharged in bankruptcy

If you dispute the debt during the validation period, the debt collector must stop all collection efforts. They can’t resume until they respond to your dispute. You can still dispute the debt after the validation period has ended. The debt collector must still respond. But they can continue phone calls and other collection attempts in the meantime.

Check Your Credit Report

If you’re contacted about a debt you don’t owe, dispute it with the debt collector. Also dispute it with the credit bureaus if the debt or collection activities appear on your credit report.

Information on your credit report is used to calculate your credit score. Having incorrect information on your report will hurt your credit score. Collection activities especially damage your score. Bad credit information may make it harder to get credit cards or loans. You may also get worse interest rates on future credit.

Summary

The law requires a debt collector to send you a debt validation letter. The letter must include information about the debt and explain your rights. If they don’t provide this letter, you can sue them. You can also report them to federal agencies that protect consumer rights, including the FTC, CFPB, and your state’s attorney general’s office.

After you receive a debt validation letter, you can send a debt verification letter. Use it to request more information or dispute the debt. If you send this during the 30-day validation period, the debt collector must pause collection efforts. They must respond to your letter before resuming collection activities.