Understanding Debt Validation

Debt validation is a process where you, as a consumer, can challenge the legitimacy of a debt that has been reported to a credit bureau or when you've been on the receiving end of a collection attempt. This process is often used when a debt is old, has been sold to a third-party collection agency, or if you believe the debt is not accurate.

Why Validate a Debt?

• Stop Collection Calls: A validated debt can halt harassing collection calls.
• Dispute Inaccurate Information: If the debt is inaccurate, you can correct your credit report.
• Negotiate a Settlement: In some cases, validation can lead to negotiation of a lower settlement amount.

Steps to Validate a Debt

1. Request a Debt Validation Letter: Send a written request to the debt collector asking for specific information about the debt. This letter should include:
   • The name of the original creditor
   • The amount of the debt
   • The date the debt was incurred
   • A copy of the original agreement
2. Wait for a Response: The debt collector is legally obligated to provide you with this information within 30 days of receiving your request.
3. Review the Information: Carefully examine the information provided. Look for any inconsistencies or errors.
4. Dispute Inaccurate Information: If the information is incorrect, send a written dispute to the debt collector and the credit bureaus. Be specific about the errors and provide supporting documentation.
5. Negotiate a Settlement (Optional): If the debt is accurate but you can't afford to pay the full amount, you may be able to negotiate a settlement. However, be cautious about entering into a settlement agreement, as it can impact your credit score.

Additional Tips

• Act Promptly: The sooner you validate a debt, the better your chances of resolving the issue.
• Keep Detailed Records: Maintain a record of all communications with the debt collector and credit bureaus.
• Consult with a Credit Counselor: If you're struggling with debt, consider seeking advice from a credit counselor.

Remember: While debt validation can be a powerful tool, it's important to understand your rights and responsibilities as a consumer. If you're unsure about the process or need further assistance, consult with a legal professional.

Would you like to know more about specific debt validation strategies or have other questions?

Attorney Nathan DeLadurantey offers free consultations to explain your legal rights in Wisconsin. Free consultations can be scheduled online.