Credit Repair Techniques: How to Validate a Debt

From Discomfort to Opportunitycause, i.e. the longer one.
There is nothing pleasant about receiving a collectionSettlement Opportunities
letter. But there is a powerful credit repair technique,The importance of knowing your SOL is considerable.
known as debt validation, which can turn yourValidating a debt that is beyond the SOL is not likely to
discomfort into opportunity. Like most credit repairset in motion unwanted legal activity, such as a lawsuit.
techniques debt validation should be done carefully andConversely, be aware that some collectors treat debt
only in circumstances conducive to success.validation as a trigger for the intensification of collection
Your Rightsefforts. Debt validation within the SOL is still a valuable
Debt validation is the right to challenge a debt andcredit repair technique, but you might chose to limit
receive written verification of a debt from a debtyour efforts to debts that you are prepared to settle.
collector. This right is granted by the Fair DebtPreparing Your Letter
Collection Practices Act (FDCPA), Section 809. TheOnce you have researched the SOL and decided to
intent of the law is to prevent errors in collection ofmove forward, it is time to prepare your validation
debt, including billing the wrong person, the wrongletter. Keep your letter as simple as possible. Like other
amount, or for debt that has previously been paid.credit repair communications, there is no benefit to
Timing Your Validationsharing your life story. There is also no value, at least in
It is important to know that you only have 30 days toyour initial communication, in taking an aggressive
exercise the right to validate debt under the FDCPA.stance. Be polite and ask them to validate the debt
Practically speaking, collectors are sensitive to the 30and provide a bulleted list of specific requests including
day time limit and if you ask for validation beyond thedocumentation that the collector owns the debt and an
time limit it is highly likely that your request will beaccounting of the amount due.
ignored.The Outcome of Validation
Avoiding ActionPer the FDCPA, if the collector has not reported your
Before attempting debt validation you shoulddebt to the credit bureaus they are not allowed to do
investigate the statute of limitation (SOL) on the debtso until they provide validation. And if have already
and establish the extent of your legal exposure. Thereported and are unable to validate the debt they must
SOL is the length of time a collector can force thecease collection efforts and stop reporting.
payment of a debt through the courts. UnderstandingFollowing Through
SOL is helpful for all credit repair efforts, as beyondDebt validation is a powerful credit repair tool which, in
the SOL, a collector cannot sue you. Or if they do, youmost cases will produce excellent results. But you
will prevail in court by claiming the SOL defense.should also be aware that legal precedent defining the
State Differencesobligations of the collector is inconsistent. As a result,
The statute of limitation varies from state to state assome collectors will provide only minimal documentation
well as by debt type, so you will have to researchand consider their job done. In addition, as there is no
your specific SOL on the Internet. If the debt wastime limit for a collector to respond, you may
incurred in a state other than that of your currentoccasionally need to press the issue.
residence, check both state SOL rules, as a collectorCopyright © 2010 James W. Kemish. All Content. All
may apply the one that is most favorable to theirRights Reserved.