Understanding Debt Verification Letters

A debt verification letter is a powerful tool in repairing your credit. When a creditor tells you that you owe money, you have the right to ask them to prove the debt it yours.

With identity theft growing at a rapid rate, it is becoming easier for people to use your personal information to open new accounts.

A debt verification letter is in no way a refusal to pay your debt. Instead, it is asking them to prove this debt belongs to you. They must prove a charge is not in error.

Under federal laws, you have the right to ask a debt collection company to prove you owe money. Not only can this help clear up any billing errors, but also it can buy you time and potentially improve your credit score.

Common Mistakes

When you are creating a debt verification letter, it’s important to include account numbers, your mailing/billing address and a citation that you are requesting the information under the Fair Debt Collection Practices Act, 15 USC 1692 Section 809 (b). This is the law that allows you to request verification.

Never list your social security number, even if asked later on. You have no way of knowing who will see your SSN. It’s too easy for someone to use this information for illicit purposes.

Don’t admit you owe the debt. Remember that a debt verification letter is requiring them to prove you need to pay them. Along the same lines, don’t refuse to pay. State you simply cannot pay until you are certain the debt is valid and belongs to you. Pay close attention to time frames. Once you’ve sent the letter, they have thirty days to respond. Make sure you take action if they haven’t responded in thirty days.

Keep copies of everything. If the battle makes it to court, you’ll want evidence that you did everything in your power to find out what the debt entailed and didn’t outright refuse to pay.

Goals Of A Debt Verification Letter

A simple typo is costly. Switch two numbers and someone else’s account becomes yours. Issues like this are common and can become a nightmare if you do not get it fixed quickly. A debt verification letter can help you fight charges you know do not belong to you. It’s important to view your credit report every year and then contact companies who claim you have accounts with them, yet you do not recall owing them money.

Ultimately, the goal of a debt verification letter is to prove a debt is, in fact, yours. If a company cannot prove it, they have no legal right to collect that debt from you. They also must remove any record of non-payment or owed money from your credit report.

Once a company has received your request for verification of a debt, you want them to come up with proof that you made a charge. If they cannot, which happens more than you’d think, your credit report is cleared of that entry and your credit score increases.

An Effective Debt Verification Letter

Name
Address
City, State, Zip Code

Re: Account Name/Case Number

Today’s Date

Greeting of your choice:

I am sending this letter in answer to a notice I received on . Please be aware I am not refusing to pay, but I would like more information on this unpaid account following laws set forth by the Fair Debt Collection Practices Act, 15 USC 1692g Section 809 (b). I dispute this charge and would like validation that I incurred said debt.

Please note I am not asking you to verify my mailing address or contact information. Instead, I am asking for debt validation to be made. I would like the following questions answered:

* How did your company come up with this amount?
* Please send me paperwork showing I agreed to pay for this product or service.
* Provide your company’s licensing information, including the agent’s name and license number, entitling you to collect debt in my state.
* What service or product is this debt for?
* What was the Statute of Limitations and has it expired?
* Who was the original creditor?

I expect to have the paperwork from your company within the next thirty days. During this time, you may not phone me at either my home or work numbers. You also may not contact any third parties. If you do, this is considered harassment and I will be forced to file a lawsuit. I expect all future communication to be done in writing to the above address. If you do not respond within thirty days, I fully expect you to remove all references to this account from my credit file. I also demand a copy of that deletion sent immediately.

If your agency has reported invalidated information to Equifax, Experian or TransUnion, this may constitute fraud under Federal and State laws. Due to these laws, if I find any negative entry by either your company or the company you represent, I may bring legal action against you citing violation of Fair Debt Collection Practices Act, Fair Credit Reporting Act and defamation of character.

Once your company provides me with the proper documentation I’ve requested, I will require a minimum thirty days to examine it. Until then, all collection activity must cease and desist. In addition, any actions that could negatively influence my credit report during this time, I will consult with a lawyer. I advise you to make sure you have proper records regarding this account before I am forced to take this matter to court.

Closing,

Signature

Your Name

Understanding Debt Verification Letters

Common Mistakes

Goals Of A Debt Verification Letter

An Effective Debt Verification Letter

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