How to request validation of a debt

March 11, 2010 by Todd Murray · Leave a Comment 

The Fair Debt Collection Practices Act (FDCPA) gives consumers the right to request validation of a debt. Under the FDCPA, a debt collector must send you a written notice within 5 days of their first communication with you. The notice must tell you, among other things, about your right to request validation of the debt.

In my experience, consumers should almost always request validation of the debt, particularly if a debt buyer is involved, because the more information you have, the better.  But here are a couple things to keep in mind about the validation process:

  • You must request validation in writing and you must request it within 30 days of your receipt of the required notice. Under the FDCPA, a debt collector doesn’t have to honor a request for validation unless it’s in writing and unless they receive it within 30 days of your receipt of the notice. As a practical matter, many debt collectors will honor a verbal request for validation and some will even honor a request made after the 30 days. But if you want to protect your right to have your debt validated, you must do it in writing and within 30 days. I recommend sending the letter via certified mail so that you can prove that they received it and when they received it.
  • Once you’ve properly requested validation, the debt collector must cease all collection attempts until they provide it to you. There are some websites that claim that a debt collector must validate a debt within 30 days and if they don’t the debt is forgiven. This is simply not true. There is no time limit to how long the debt collector has to validate your debt. They just can’t call you, write you, sue you, or take any other action until they validate. If they do, they’ve violated the FDCPA.
  • A debt collector can’t use your failure to request validation of a debt against you. The FDCPA prevents collectors from using your failure to request validation as evidence that you owe the debt.
  • There aren’t any clear requirements about what type of documents are sufficient validation. The FDCPA doesn’t define validation, and the FTC has said that validation only needs to confirm that the debt collector is pursuing the right person and the right amount.
  • Collection activity during the 30 day validation period can’t “overshadow” your right to request validation. This can be a little tricky, but here’s an example: let’s say you receive the validation notice on March 1 and then they serve you with a lawsuit on March 5. Under the FDCPA, you have 30 days–or until March 31–to request validation. And in Minnesota you have 20 days–or until March 26–to respond to a lawsuit. So because you have to answer the lawsuit before your time to request validation is up, the lawsuit “overshadows” your right to request validation. This is a violation of the FDCPA.

Feel free to downloand my free validation letter form and instructions. And if you live in Minnesota and believe that a debt collector has violated your rights under the FDCPA, feel free to contact me for a free case evaluation.

You can sue under the FDCPA even if you owe the debt

June 4, 2009 by Todd Murray · Leave a Comment 

moneyI’m often asked whether a consumer can sue a debt collector under the Fair Debt Collection Practices Act (FDCPA) if they owe the underlying debt. The answer is a resounding YES! The main purpose of the FDCPA is to protect all consumers against debt collection abuses, whether they owe the underlying debt or not. In fact, most people who sue debt collectors under the FDCPA owe the debt.

The FDCPA prohibits abusive, deceptive, and unfair debt collection practices. Some of the more common debt collection practices prohibited by the FDCPA are:

  • informing third parties that you owe a debt;
  • contacting you at inconvenient times or contacting you at work after you’ve told the debt collector not to;
  • threatening you with violence;
  • using abusive or profane language;
  • threatening to take legal action when the debt collector has no intent to do so;
  • falsely implying that you committed a crime by not paying the debt.

If a debt collector violates the FDCPA, you have the right to sue the debt collector and recover damages. You are entitled to $1,000 in statutory damages and compensation for actual damages, such as emotional distress. And if your case is successful, the debt collector must pay your attorney fees. Because of this, most consumer lawyers will accept a FDCPA case on a contingency fee arrangement. This usually means you will not have to pay any attorney fees, unless your case is successful.

If you’re dealing with debt collectors, make sure to download and use my free debt collection call log so that you can document all of the debt collectors’ communications. And if the debt collector does anything that you think was unfair; untrue; or harassing, oppressive, or abusive, please contact me to discuss the situation further. I offer a free case review for all FDCPA cases and if I agree to handle your case, you won’t have to pay me any money up front. My fees come from the money I recover from you if you win your case or accept a negotiated settlement.

(photo: AMagill)