subject: Debt Validation Letter (how Debt Validation Works) [print this page] A debt validation letter can be a very powerful tool. It can help you to get out of paying a debt you do not think is your own, is inaccurate or is hurting your credit report. Read on to know more.
What is a debt validation letter? How can it help you? You will send this formal letter to debt collectors or lenders when they request payment on a debt you are not sure you owe. Part of the credit repair business that you need to handle is this letter. In order for you to build your credit and to get out of debt this is one of the first steps. In some situations, companies that provide credit repair software will encourage you to use these letters to force a lender to prove the debt is in fact valid.
Why Proving Your Debt Is Valid Matters
For many individuals, a debt validation letter can be a very powerful tool. It can help you to get out of paying a debt you do not think is your own, is inaccurate or is hurting your credit report. Look at how this can work for you.
* When you obtain a letter from a collection agency, you will notice that along the bottom is a notice that you have 30 days to dispute the information contained on the report. Disputing it is a legal right you have.
* If you dispute this information through a debt validation letter (a simple request to the lender to validate or prove the debt is your own), the lender or collector must comply before trying to collect on the debt from you.
* If the lender cannot prove that the debt is your own, the lender or collector cannot force you to repay the debt. There is simply no way for them to enforce repayment of the debt if they cannot prove that the debt was yours in the first place.
If you file a credit dispute like this, it is a good idea for you to know that the debt is not yours. If proof is out there that you did incur the debt, you will be responsible for repaying it. However, if there is a chance that it is not your own, or that the debt is not accurate, then disputing it could help you to get out of repayment and to get it off your credit report. You can improve credit scores this way, if you can prove the debt is in fact not your own. For many people, this type of debt validation letter is the easiest way to get out of paying for debts that are not your own.
