What Constitutes Proper Debt Validation
The FDCPA does not clearly set standards as to what is proper debt validation but the court’s have made rulings that can be used as guidelines.
Debt Collectors
Debt Statute of Limitations listed by State
The statute of limitations is the time period set by law in which someone can sue you. Each State sets its statute of limitations on debt.
How to Request Debt Validation from debt collectors
Debt validation is a powerful tool consumers have to use against unfair debt collection. It forces a debt collector to prove you owe the debt.
Remove accounts that are past the credit reporting time period
Original creditor is no longer reporting an account to the credit bureaus but debt collector is reporting new dates on the account. This action is re-aging an account which is illegal.
Disputing an old account can trigger a new debt collector
Disputing an old collection account can trigger the collection agency to renew their collection efforts or sell the debt to a new debt collector.
Duplicate negative accounts on credit reports will crash a credit score
Credit scores can take a dive if you have duplicate negative information. It appears that you have more DEBT than you actually have.
Can a collection agency report an account 30 days late?
Collection agencies are not original creditors and should not be reporting monthly late payments on your credit report, you have no legal account with a debt collector that requires monthly reporting of late payments.
5 Tips to Handle Collection Accounts
Handle Collection Accounts: There are several ways to deal with collection accounts including getting them deleted from your credit reports. Collection accounts are credit score killers, there’s no doubt you just want them to go away.
Debt validation lets you question the validity of a debt
You can request a debt collector verify the amount and validity of the debt they claim is owed by you. Validation is helpful when debt is repeatedly sold.
Double Whammy of a Charge-Off and a Collection Account Reporting
When you’re struggling with debt, you may want to zone out…Don’t do it! Unpaid debt just doesn’t disappear. Not dealing with debt can turn into a charge-off and collection account which can be a double whammy on your credit reports.
