Under the FDCPA or the Fair Debt Collections Practices Act, you have the right to “debt validation”. This is a demand from the collection agency and the original creditor that the debt is really your responsibility and that the balances, terms of the loan and any other pertinent information is correct and accurate. A collection agency must also provide proof that they have the legal right to attempt to collect the debt.
If you provide a written request (and always make sure that you keep a copy and mail it via Certified Mail Return Receipt Requested) the collection agency must halt all collection activity until they have supplied the appropriate validation.
Occasionally a collection agency will stop all collection activities and give the account back to the original creditor for collection rather than provide validation.
A collection agency is not required to supply the validation, however, they must do so if they intend to continue to try to collect the debt. If you have any disputes with the debt you have the right to dispute it directly with the original creditor.
If you demand validation from a creditor who has already listed a negative on your credit report, they are required to note that the account is “disputed by consumer”. They cannot make a new listing or change or verify a current listing until they have provided you with the validation that you requested.
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