What to Look for in a Debt Validation Letter

Debt collectors call and text frequently in attempts to recover debts owed by Georgia residents, and it is important for anyone in the state to know that they have certain protections related to debt collection practices under the federal Fair Debt Collection Practices Act (FDCPA). One of the protections this law provides has to do with ensuring that the debtor has clear and detailed information about the debt they owe. In short, the FDCPA requires debt collectors to provide debtors with information concerning the debt they owe (or allegedly owe). This information is usually supposed to come in the form of a debt validation letter.

What is a debt validation letter? According to Experian, a debt validation letter is simply “a document from a debt collector providing information about a debt you may owe.” If a debt collection company does not provide this information to you upon initial contact, it must be provided to you within five days of that initial contact. What information should you expect to see in a debt validation letter? The following is information that you should look for when you receive a debt validation letter.

Required Elements of a Debt Validation Letter 

When you receive a debt validation letter from a debt collector, the Consumer Financial Protection Bureau (CFPB) clarifies that all of the following information must be included:

• Statement in the letter that indicates the letter is from a debt collector;
• Your details, including your name and mailing address;
• Mailing address of the debt collector;
• Name of the creditor to whom the debt is owed (may include more than one creditor if more than one creditor is owed);
• Account number associated with the debt;
• Itemized information about the current state of the debt, including the current amount owed, and details about interest and fees that have accrued, as well as any payments that have been made;
• Amount of debt owed at the time the letter is sent;
• Information for you about how to respond to the debt collector, including to dispute the debt itself or the amount owed; and
• Date by which you must dispute the debt (usually 30 days).

In addition, the FDCPA also requires the debt validation letter to contain information about consumer protections available to the debtor and rights under the FDCPA, and information related to disputing a debt. The letter should also include disclosures, and it may also include other information that is not required by law. Once you receive a debt validation letter, it is important to seek legal advice about your next steps.

Contact a Georgia Debt Settlement Lawyer 

It is important to hold debt collection companies accountable and to ensure that you receive the debt validation information you need. Once you have a debt validation letter, you can explore further options with a debt settlement lawyer. Depending on the nature of the debt, an experienced Georgia debt settlement attorney at Konn Law Firm LLC may be able to assist you with a debt settlement plan that can allow you to get out of debt and to get a fresh start financially. Contact our firm today to find out more about how we can assist you.

Sources:

ftc.gov/legal-library/browse/rules/fair-debt-collection-practices-act-text

consumerfinance.gov/ask-cfpb/what-information-does-a-debt-collector-have-to-give-me-about-the-debt-en-331/

experian.com/blogs/ask-experian/what-is-debt-validation-letter/