When it comes to fixing bad credit and collections, you have a very important right as outlined in the Fair Debt Collection Practices Act: The right to have a collection account "validated."
As designed by the FDCPA, the process of validation is much different than the concept of verification. Verification centers on a credit bureaus ability to verify information and this leads to a cursory examination of the account. During this examination, the consumer will decide whether or not the creditor was right or wrong to present certain information about the consumer.
Conversely, when a collection agency is asked about validating a debt, the process is a much more involved one. In such a situation, it is up to the collector to prove that a debt is your responsibility. This is what can make the entire process very involved. Additionally, the collector will be required to stop all collections activity until they are able to provide the necessary evidence. In the event the collection agency is unable to validate the debt, it must stop all collections and reporting action.
It is important to point out that these rights apply only to your issues with collection agencies. These rules do not apply to the original creditor. The reason for this is that the records of collection agencies have a tendency to be less than reliable. In some instances, they have been known to chase after the wrong people to collect debts. Other times, the owed amount reflected is way off from the accurate figure. It is the validation process that is intended to protect consumers from such scenarios.
In order to properly validate a debt, a collector is required to present documentation gained from the original creditor that displays you really do owe the amount specified. As you can see, this allows validation to be a truly helpful method of cleaning up problems with your credit report. In some instances, credit agencies may not even have all the necessary forms to validate the debt owed. This is common when a collection account has moved from collector to collector. Sometimes, all the creditor will have is a simple computer printout to provide evidence of a claim. However, the FTC has made it abundantly clear that merely providing itemization accounts is not sufficient proof for the validation of a debt.
There is another very unique aspect to the validation process that many may be completely unaware of. Specifically, it can help you eliminate the collection of accounts that do belong to you. Some may wonder how this is possible. After all, if the debt is truly yours, how could you legally have is removed. The way this can be achieved is through initiating the validation process.
In some instances, accurate information may be removed from your file. This can be the case when the information is very old. When you seek validation on an old account and the collection rep is unable to present such information, the negative info may very well be removed from the system. Some may say this is an unfair practice, but if collection agencies are not keeping accurate records and maintaining them then it is their own fault when a decision is reversed.
As designed by the FDCPA, the process of validation is much different than the concept of verification. Verification centers on a credit bureaus ability to verify information and this leads to a cursory examination of the account. During this examination, the consumer will decide whether or not the creditor was right or wrong to present certain information about the consumer.
Conversely, when a collection agency is asked about validating a debt, the process is a much more involved one. In such a situation, it is up to the collector to prove that a debt is your responsibility. This is what can make the entire process very involved. Additionally, the collector will be required to stop all collections activity until they are able to provide the necessary evidence. In the event the collection agency is unable to validate the debt, it must stop all collections and reporting action.
It is important to point out that these rights apply only to your issues with collection agencies. These rules do not apply to the original creditor. The reason for this is that the records of collection agencies have a tendency to be less than reliable. In some instances, they have been known to chase after the wrong people to collect debts. Other times, the owed amount reflected is way off from the accurate figure. It is the validation process that is intended to protect consumers from such scenarios.
In order to properly validate a debt, a collector is required to present documentation gained from the original creditor that displays you really do owe the amount specified. As you can see, this allows validation to be a truly helpful method of cleaning up problems with your credit report. In some instances, credit agencies may not even have all the necessary forms to validate the debt owed. This is common when a collection account has moved from collector to collector. Sometimes, all the creditor will have is a simple computer printout to provide evidence of a claim. However, the FTC has made it abundantly clear that merely providing itemization accounts is not sufficient proof for the validation of a debt.
There is another very unique aspect to the validation process that many may be completely unaware of. Specifically, it can help you eliminate the collection of accounts that do belong to you. Some may wonder how this is possible. After all, if the debt is truly yours, how could you legally have is removed. The way this can be achieved is through initiating the validation process.
In some instances, accurate information may be removed from your file. This can be the case when the information is very old. When you seek validation on an old account and the collection rep is unable to present such information, the negative info may very well be removed from the system. Some may say this is an unfair practice, but if collection agencies are not keeping accurate records and maintaining them then it is their own fault when a decision is reversed.
About the Author:
Michael Saunders has an MBA from the Stanford Graduate School of Business. He edits a site on fixing credit and is president of Information Organizers.
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