Validating a debt


The common practice when an account is disputed is to validate it.There could be a 90/10, a 50/50, or a 20/80 chance that they will do so.In addition, debt buyers reported that they were more likely to verify debts that they had obtained from the original creditor (55.7%) than debts they had acquired from other debt buyers (35.9%).Regression analysis, presented in Table 15, indicates that debt buyers were significantly less likely to report verification of disputed medical, telecommunications, and utility debt, as compared to verification of credit card debt.So much stuff has been written advising people to get their debts validated.I’ve asked professionals and lawyers all over for a definition of what this actually means and until now, nobody really knew.

As shown in Table 14, the Commission’s analysis of 713,308 disputed debts in 1,853 portfolios revealed that debt buyers reported that they verified 51.3% of the debts that consumers had disputed.Based on my experience, its range can be from anywhere from a few days to possibly as long as 6 months, and sometimes longer.Which leads me to another consideration you should make: there is no time limit on how long a collection agency or junk debt buyer has to provide you with debt validation.While it is true that they can’t attempt to collect from you previous to providing the validation after the validation has been requested within the first 30 days, including credit reporting, they can resume their collection efforts after they do so.So if sending a debt validation letter is part of your strategy to clean up your credit report, please know that it is possible that your credit report could be negatively impacted in the future if the account remains unresolved and is validated in the future, provided it’s still within the 7-year reporting period.Here is what the state says the validation of debts is.

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