How to Request Debt Validation from a Collection Agency (DV Letter)

This is a vital step that must be taken whenever you are contacted by a collection agency. It is a letter sent by certified mail with return receipt requested. It must be sent within 30 days of the first letter sent by the CA(collection agency). The collection agency must validate the debt before they can list this debt on your credit report, or call your house all day.

Instructions

1

The heading of this letter will look like this:

00/00/00(date)
Collection Agency X
123 greedy St
Ninthcircleofhell, AnyState 12345
RE: Account as written on collection letter
Sent via Certified Mail article number 0000 0000 0000 0000 0000

To Whom It May Concern:

2

The body of this letter contains requests for three specific pieces of information:

1. The agreement with the original creditor that authorizes the collection agency to collect this alleged debt. This is a contract between the OG and the CA and will explain whether they have "assigned" the debt to the CA or "sold" the debt to the CA.

2. The signed agreement between you and the original creditor. This is your credit application or loan application. This agreement will detail under what circumstances the OG can send your account to a collection agency.

3. The documents regarding the payments made on this account validating the amount. These are the records of charges to the account. This is very important in determining the amount you owe. It will detail what amount is principle, what amount is interest and fees from the OG and what amount is tacked on by the CA.

3

The end of this letter will state:

Please consider this a letter of demand.

Sincerely,

Your Name
123 Your Street
Hometown, Homestate 00000

4

With this letter you will include a copy of the letter that the Collection Agency sent to you. Do not send any further identifying information. Make a copy of your letter and start a file which includes the original letter from the collection agency. Mail this letter by Certified Mail with Return Receipt Requested.

5

When your receive your green card back in the mail, place it in your file. Until you receive the information requested, the collection agency is prevented by law from any collection activities on this debt. If they violate this law, you need to keep careful records of these violations.

6

The next step will depend on the reaction to your letter. If the collection agency gives up your file with all information requested, then you can negotiate a settlement with the collection agency.

The frustrating thing is that you may get nothing back. This can mean several things. It is possible that the CA has no legal right to collect this debt. It is also possible is that the CA has decided that you are not a pushover, and it will not be profitable to try and collect on you.

Don't do a victory dance. The Original Creditor can legally pursue this debt themselves. They OG is governed by the FTC and the FCRA. They are not subject to the FDCPA, but they still have to provide records and proof of debt.

7

Keep this file. This is important because you will need these records to prove any violations. For instance, a few months or couple years after you send this letter, another collection agency may contact you. You will repeat this process, while also reporting the violation of the FDCPA.