What is the purpose of a debt validation letter?

Can someone lead me in the right direction? I'm very confused on what my first step is. I have all 3 of my credit reports. I have medical and credit card debt. The medical is with collection agenicies and the credit cards are with them still(no collection agency as of yet). I keep reading about debt validation. Why? And with all of them or just collection agencies?

What is the purpose of a debt validation letter?
The sources listed in the previous answers are my favorite links....go there and read up!





Note one thing, however. Debt validation is required under the Fair Debt Collections Act, but only governs collection agencies, attorneys, and other 3rd party collectors. It does not cover the original creditor, unless your state has implemented their own version of the FDCA and included them (not many do).





So attempting to validate debts from credit card companies themselves may not result in anything.





One MAJOR reason for validating is because collection agencies tend to tack on lots of illegal fees and interest. You want to make sure the amount in contention is accurate. And the only way to do that is to get proof and documentation. They MUST supply you with copies of the signed contract, bills, receipts, last statements, and everything used to calculate exactly what they claim you owe.





Sending you a single statement saying you owe them $xx.xx money is NOT validation.
Reply:http://www.creditinfocenter.com/forms/sa...





Above is a website link that provides your a sample validation letter. You can download it also.


You could try to use debt settlement methods with a collection agency, but you might want to try debt validation first. Why? Because they may not even be legally entitled to collect the debt from you.








Think of it in these terms: Even if you suspected you might owe Joe (original creditor) some money, and Bob (collection agency) came up to you and asked for Joe's money - would you just hand over the cash? No. No one would. These might be some of the thoughts you would have:


How do you know that Bob is actually collecting for Joe? What legal documents does Bob have to prove that he is legally authorized to collect?


How much is the actual debt? What payments have already been made on the account? Where is the accounting of the debt, including all interest and fees? Are these fees and interest amounts legit?


Do you really owe Joe the money? Or was it actually a third party, Sam? Where is the contract showing that you made a deal with Joe and not Sam?


If you keep all the legalese out of it when thinking of legal proof, you'll have an easier time figuring out what to ask a collection agency (Bob) for to validate a debt.


The definition of a debt collector is as follows:





TITLE VIII - DEBT COLLECTION PRACTICES [Fair Debt Collection Practices Act]


§ 803. Definitions [15 USC 1692a]


As used in this title --


(6) The term "debt collector" means any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another. So when a collection agency is assigned, or has purchased, your debt, they are NOT the creditor. They are the debt collector and the actions they take are all governed by the FDCPA. (The Fair Debt Collection Practices Act ).What does a debt collector need to provide as debt validation?


Proof that the collection company owns the debt/or has been assigned the debt. (Bob is legally entitled to collect this particular debt from you.) This is basic contract law. It is very difficult to get a judgment without a direct contract between collection agency and the original creditor.


At a minimum, some account statements from the original creditor. If you really want to get sticky, you can pin them down on the amount of the debt by requiring complete payment history, starting with the original creditor. (How the heck did Bob calculate this debt? What fees/interest Bob has tacked on to this debt and how he determined these fees?) This requirement was established by the case Fields v. Wilber Law Firm, Donald L. Wilber and Kenneth Wilber, USCA-02-C-0072, 7th Circuit Court, Sept 2004..


Copy of the original signed loan agreement or credit card application. (Your contract with Joe establishing the debt between you.) However, account statements from the original can fulfill these requirements.


Bottom line is by sending a validation letter, use certified mail, and follow the instruction that are detailed on the site.


Hope it helps
Reply:A demand to validate letter is used to prove that you have a legal obligation to repay the debt, to who it needs to be paid and all the accounting used to determine the amount they are asking for.





It is used in cases of ID theft, and it's also used as a tactic for fighting collection agencies.
Reply:Check out the following link which will provide information on the debt validation process:





http://www.creditinfocenter.com/rebuild/...
Reply:PIE!!!!