Debt verification is the right of every consumer. Under various state and federal laws, consumers have right to challenge their creditor or collection agency to provide proof that a debt exists and proof that the person requesting payment of the debt has the authority to do so. If a debt can’t be verified or if a company can’t prove that they have the authority to collect the debt, then the borrower is under no obligation to re-pay the debt.
A verification of debt must be done in writing, which keeps many people from pursuing such an action. This is often due to a lack of comfort in communicating via the written word or just a lack of knowing where to start. To make the process of debt verification easier, the following debt verification letter sample is provided below as a general outline for free use:
Name of Collection Agency / Creditor
City, State, Zip Code
Re: Account # / Reference #
To Whom it May Concern:
You are receiving this letter in response to (entries on my credit report / a phone call from one of your representatives / a letter from your agency) that state (briefly summarize the content of the first contact here). You are advised that this is NOT a refusal to pay, it is a notice pursuant to the Fair Debt Collection Practices Act (FDCPA) that your claim is disputed and validation is requested. You are also advised that this letter is NOT a request for verification or proof of address, but a request to validate the debt pursuant to the FDCPA.
I request your offices provide evidence that I have any legal obligation to pay you.
Please disclose what the money that you say I owe is for, how you calculated what I owe, copies of documents that will show I ever agreed to pay what you say is owed, copies of any judgments (if applicable), the original creditor, proof that the statute of limitations on this debt has not expired, proof that you are licensed and authorized to collect debts in my state, your business / collection license numbers and registered agent, proof that your company owns the debt and / or has been assigned the debt that you say I owe, complete payment history starting with the original letter with an explanation of any and all fees that have been added to the original debt, and a copy of the original and signed loan agreement / credit application that established a debt between the original lender and I.
You are advised that if any invalidated information has been reported to any of the three major credit bureaus your actions may constitute fraud under various federal and state consumer protection laws. It is for this reason that legal action WILL be brought against your agency / company if any negative marks are found on my credit report by your company or the company you are representing.
I require 30 days from the day that I receive all of the requested documentation / validation listed above to investigate the information.
During this time you must cease and desist ALL collection efforts.
I also request that ALL communication efforts be made via written correspondence from now on. Do not call my residence, place of employment, or any other phone number associated with my name.
Those that want the greatest chance of success with their debt verification letter are urged to have any correspondences sent to and from debt collectors reviewed by a local licensed attorney.