Why Debt Verification?

The simple truth is most consumers who owe money on outstanding debt have had their debt resold. This means a wholesale debt collector, also known as junk debt buyers, has purchased your debt. When you failed to make payment on your original account, your creditor typically writes this debt off as unrecoverable. The debt amount is then sold off to a collection agency for pennies on the dollar.

Collection agencies than harass you to collect the money you owed to the original creditor which they are now the proud owner of. The good news is you have a weapon to fight back with: Debt verification. Debt verification is the process where you force the collections agencies to conform to the Fair Debt Collection Practices Act (FDCPA) guidelines, and more importantly, prove you owe them the amount.

Video: How to Deal with Debt Collectors

How Does a Debt Verification Letter work?

A debt verification letter works as your first step in getting your debts eliminated, if being collected unlawfully. Your letter will address specific questions, include requests for proof of ownership and account history of your debt, and put the ball in the collector’s court to prove his case against you. Your certified letter sent to your collector will serve as proof that you are serious about making them do some leg work, and will make sure they are aware you are serious.

Video: Collection Agencies and Your Credit

Common Errors Made in Debt Verification

While it is true that debt verification is the quickest and simplest way to eliminate old debts sold to collectors, you must not make mistakes. Sending an incomplete debt verification letter will do you no good, and could actually be used against you should your creditor decide to sue you. It is absolutely essential to always send your letters via U.S. Certified Mail, and retain copies for your records. Follow the instructions in this sample letter below, and don’t leave any information out.

debt verification letter mistakes

Sample verification letter to your collection agency:

Collection Agency Name
Address
CITY/Town, STATE ZIPCODE

Re: Acct Ref. # XXXXX and XXXXX

To Whom It May Concern:

This letter is in response to the addition of an entry(s) by your company on my credit reports(s). This is not a refusal to pay, but a notice made pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (b) that your claim is being disputed and validation is now being requested.
This letter does not serve as a request for proof of my mailing address, but instead a request for account validation requested pursuant to the above stated Title and Section. I am requesting that your company submit to me, with irrefutable evidence, that I currently am under any legal obligation to pay you.

I am requesting documented responses to the following:

An explanation as to what to amount of money owed is for.
A detailed of explanation at how you arrived at the amount I currently am told by your company that I owe to you.
Copies of any signed contracts I have made with you in regards to this debt.
The name and contact information of my original creditor.
Proof that this debt falls within the statue of limitations laws of my state of residence.
A copy of your license to operate as a collection agency in this state.
Proof that you, the current collector, legally owns this debt or has legally been assigned this debt; meaning your agency is legally enabled to collect the debt in question from me. .
A complete history of my payments beginning with my original creditor. This requirement is established by the case Fields v. Wilber Law Firm, Donald L. Wilber and Kenneth Wilber, USCA-02-C-0072, 7th Circuit Court, Sept 2004..
A signed copy of the original loan agreement or credit card application.

Additionally, you should be aware that should your offices be found to have reported invalidated information to any of the credit bureaus, this may be a constitution of fraud on your part, violating both Federal and State laws . If it is discovered in the process of verifying this debt that my personal credit report has been negatively affected by your company fraudulently, I will do the following:

Immediately file legal action against you for the following violations:

Violation of the Fair Credit Reporting Act
Violation of the Fair Debt Collection Practices Act
Defamation of Character
Should your company be unable to secure the requested documentation in the following Declaration, I will need a minimum of 30 days to investigate this information myself. During this investigation period all collection actions on your company’s part must immediately cease and desist including any further attempts to negatively report on my credit report.
I will further request, in writing, that no telephone calls ever should be made by your offices to my place of resident or workplace. Any attempt at phone communication of will constitute harassment and will leave me no option but to file suit. All communications are requested to be performed in writing and sent to the return address posted on this letter.

Sincerely,

Sign Your Name