What happens if creditor does not validate debt?

What Happens When A Collector Fails To Answer a Debt Validation Letter? In order for debt to be managed legally, there are obligations on the creditor as well as the debtor. If they ignore you, you can sue them in small claims court for violations of the Fair Debt Collection Practices Act.

How long does creditor have to validate debt?

30 days
Under the FDCPA, if a collector contacts you about a debt, you have 30 days to request validation. If you send a verification request within that time, the creditor is legally obligated to respond to you.

What does a debt collector need to provide as debt validation?

Verifying a debt Make sure you actually owe the debt. Ask the debt collector for proof (such as documents or account statements) if you think the debt is not yours or if you disagree with the amount demanded.

Does original creditor have to validate debt?

In other words, you only have the right to request verification of your debt from companies or law firms collecting the debt or which have purchased the debt from the original creditor. A collector’s duty to verify a debt only kicks in if you send a specific, written request for verification.

What happens if a creditor cannot verify a debt?

Under the Fair Debt Collection Practices Act (FDCPA), if a creditor cannot verify a debt it may not collect the debt or otherwise contact the debtor about the debt. If the collection agent does not contact you further about the debt, it is safe to assume your collection account was a bare account, and therefore is non-collectable.

What to do if a debt collector ignores you?

That way, you can have the items removed by contacting the credit bureaus. If they ignore you , you can sue them in small claims court for violations of the Fair Debt Collection Practices Act. Sometimes, after you have sent a validation request, the collector will send you back a “verification of the debt”.

How to request debt verification from a debt collector?

You must make your verification request in writing. No specific legal language is required. A simple sentence saying “I request verification of my debt” will suffice. Send it to the collector’s mailing address that is listed on the collection letters or your bills. You don’t have to send it by certified mail.

What to do if a debt is on your credit report?

By law, the collector then must stop contacting you – though the debt doesn’t go away. But, if the collector sends you written verification of the debt, they can start contacting you again. And, if there’s incorrect information on your credit report, dispute that, too. You can use these sample letters, using the address given in your credit report.