Debt Validation and Disputes: How to Make a Collector Prove the Debt
Debts are often sold and resold, sometimes several times, and records get lost or mixed up along the way. Collectors sometimes pursue the wrong person, the wrong amount or a debt that was already paid. Debt validation is the process that lets you make a collector show what it is collecting and why.
Key takeaways
- A debt collector must send you a validation notice with key details about the debt.
- You have 30 days after receiving that notice to dispute the debt in writing.
- If you dispute in time, the collector must pause collection until it sends you verification.
- Disputing a debt does not admit that you owe it, and it does not restart the statute of limitations.
Deadlines to keep in mind
Step 1: Read the validation notice
Under the CFPB’s Regulation F, a collector must give you a validation notice either in its first communication or within five days after it. The notice must include:
- The name of the collector and the name of the creditor it is collecting for
- The account number and the amount owed on a specific "itemization date," with a breakdown of interest, fees, payments and credits since then
- The current amount of the debt
- The deadline to dispute the debt, and a tear-off form you can use to dispute it
- How to request the name and address of the original creditor
Step 2: Decide whether to dispute
Dispute the debt if any of these apply:
- You don't recognize the debt or the collector.
- The amount is wrong, or it includes fees you never agreed to.
- You already paid or settled the debt.
- The debt is the result of identity theft.
- The debt is very old and may be past the statute of limitations.
- You simply want proof before you pay anything.
Step 3: Send your dispute in writing, within 30 days
Send a dispute letter or the form included with the notice within 30 days after you receive it. Send it by certified mail with return receipt requested, and keep a copy. In the letter:
- Identify the account using the reference number from the notice.
- State that you dispute the debt and request verification and the name and address of the original creditor.
- Do not admit that the debt is yours or promise to pay.
- Keep it short and factual.
Step 4: What the collector must do next
If you dispute within 30 days
If you dispute in writing within the 30 days, the collector must stop collecting the debt until it mails you verification. Verification does not always mean a copy of your original signed contract. It can be as simple as documents confirming the amount and that you are the right person. If the collector cannot verify the debt, it should stop collecting it.
If you dispute after 30 days
If you dispute after the 30 days, the collector does not have to pause collection, but it must still not report the debt to the credit bureaus without noting that it is disputed, and you keep all your other rights.
Step 5: Check your credit reports
Get your free credit reports from all three bureaus at AnnualCreditReport.com. If a collection account is wrong, dispute it with the credit bureau and the company that reported it. Under the Fair Credit Reporting Act, they must investigate, usually within 30 days, and correct or remove information they cannot verify.
Remember that most negative information, including collection accounts, can stay on your credit report for up to seven years from the date you first fell behind, regardless of the statute of limitations.
What if you are sued?
If a collector files a lawsuit, it must prove its case in court, including that it owns the debt and that the amount is correct. This is a much higher bar than validation. Never ignore a lawsuit. Read what to do if you are sued for a debt.
What if you are sued?
If a collector files a lawsuit, it must prove its case in court, including that it owns the debt and that the amount is correct. This is a much higher bar than validation. Never ignore a lawsuit. Read what to do if you are sued for a debt.
Want help disputing a debt?
Use Debt Remediation's dispute letter templates, or let their specialists handle the process for you from start to finish.
Frequently Asked Questions
No. Disputing does not lower your score. A disputed debt should be marked as disputed on your credit report.
No. Requesting validation or disputing a debt is not a promise to pay and does not acknowledge the debt.
If you disputed in writing within 30 days, continued collection before verification may violate the FDCPA. Keep records and consider filing a complaint with the CFPB.
