How many days does a debt collector have to validate a debt?
There's no set time limit in which collectors must respond to a debt verification request you send them. However, they're required to send a debt validation letter within five days of first contacting you.
So, you'll notice the FDCPA says the consumer must request validation of the debt or dispute the debt within 30 days or she automatically admits validity of the debt, but the collector can take however long they want to validate the debt.
What Happens If the Collector Doesn't Verify the Debt? If a debt collector fails to verify the debt but continues to go after you for payment, you can sue that debt collector in federal or state court. You might be able to get $1,000 per lawsuit, plus actual damages, attorneys' fees, and court costs.
| State | Written | Oral |
|---|---|---|
| Alaska | 6 years | 6 |
| Arizona | 5 years | 3 |
| Arkansas | 6 years | 3 |
| California | 4 years | 2 |
(5) Validation period means the period starting on the date that a debt collector provides the validation information required by paragraph (c) of this section and ending 30 days after the consumer receives or is assumed to receive the validation information.
If the collection agency failed to validate the debt, it is not allowed to continue collecting the debt. It can't sue you or list the debt on your credit report. Why request validation, even if you're ready to pay and you know it's your debt? Simple.
They gave you the money, and you should pay. The same is true even if the debt is sold and belongs to someone else. However, you have every right to dispute the debt if details are lost during the transition from the original creditor to the debt collection agency.
Your Right to a Validation of the Debt
The debt collector must inform you of this right and you must make the request within 30 days of the first contact. After receiving your request, the debt collector must provide you with information about the debt, including the amount owed and to whom it was owed.
If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
In order to win a court case, a debt collector must prove that they have proper ownership of the debt, that you actually owe the debt, and that the amount they claim you owe is correct.
Can a debt collector restart the clock on my old debt?
Keep in mind that making a partial payment or acknowledging you owe an old debt, even after the statute of limitations expired, may restart the time period. It may also be affected by terms in the contract with the creditor or if you moved to a state where the laws differ.
Debt collectors cannot harass or abuse you. They cannot swear, threaten to illegally harm you or your property, threaten you with illegal actions, or falsely threaten you with actions they do not intend to take. They also cannot make repeated calls over a short period to annoy or harass you.
Can a Debt Collector Collect After 10 Years? In most cases, the statute of limitations for a debt will have passed after 10 years. This means a debt collector may still attempt to pursue it (and you technically do still owe it), but they can't typically take legal action against you.
A debt validation letter is a letter that debt collectors must provide that includes information about the size of your debt, when to pay it, and how to dispute it. A debt collection letter essentially proves you owe the debt collector money.
How to Request Debt Verification. To request verification, send a letter to the collection agency stating that you dispute the validity of the debt and that you want documentation verifying the debt. Also, request the name and address of the original creditor.
You can sue the debt collector for violating the FDCPA. If you sue under the FDCPA and win, the debt collector must generally pay your attorney's fees and may also have to pay you damages. If you're having trouble with debt collection, you can submit a complaint with the CFPB.
What is a “drop dead” letter? A “drop dead” letter is written notification from you to any collection agencies that are harassing you. It informs the agencies that you're aware of your rights under FDCPA and that you're requesting they stop contacting you about a given debt — effective immediately!
If a debt collector does not respond to your dispute letter within five days of their initial communication with you, or if they continue to contact you or try to collect the debt without sending you verification, they are violating the FDCPA and you have several options to protect yourself and your rights.
Do Debt Validation Letters really work? Yes, they do. When a debt collector receives a Debt Validation Letter, they are legally required to provide validation of the debt. Debt Validation Letter's work best when they include a cease and desist clause that forces a lawsuit.
Specifically, section 609 of the FCRA gives you the authority to request detailed information about items on your credit report. If the credit reporting agencies can't substantiate a claim on your credit report, they must remove it or correct it.
Do I have to pay a debt if it has been sold?
Once your debt has been sold you owe the buyer money, not the original creditor. The debt purchaser must follow the same rules as your original creditor. You keep all the same legal rights. They cannot add interest or charges unless they are in the terms of your original credit agreement.
Does disputing a debt restart the clock? Disputing the debt doesn't restart the clock unless you admit that the debt is yours. You can get a validation letter to dispute the debt to prove that the debt is either not yours or is time-barred.
In this article, “debt validation letter” means the initial notice a debt collector must send you under federal law, and “debt verification letter” means a letter you send to the debt collector to request more information and/or to dispute the debt.
Debt relief or debt cancellation is the partial or total forgiveness of debt, or the slowing or stopping of debt growth, owed by individuals, corporations, or nations. From antiquity through the 19th century, it refers to domestic debts, in particular agricultural debts and freeing of debt slaves.
Ignoring a debt collector isn't always a good strategy. You should call a debt collector back in these two instances: Find out if the debt is legitimate. If you don't recognize the debt or aren't sure its amount is correct, write to the debt collection agency and dispute it.
References
- https://www.nolo.com/legal-encyclopedia/what-are-my-rights-against-a-debt-collector.html
- https://www.incharge.org/debt-relief/credit-counseling/bad-credit/negotiating-with-debt-collectors/
- https://www.rahmanlegal.com/blog/what-should-i-do-if-a-debt-collector-ignores-a-dispute-over-the-validity-or-accuracy-of-a-debt/
- https://www.bankrate.com/personal-finance/debt/reset-old-debt/
- https://en.wikipedia.org/wiki/Debt_relief
- https://www.bankrate.com/personal-finance/debt/how-to-pay-off-a-debt-in-collections/
- https://www.solosuit.com/posts/make-debt-validation-letter-guide
- https://www.solosuit.com/posts/pay-original-creditor-or-collection-agency
- https://www.experian.com/blogs/ask-experian/how-to-get-debt-collectors-to-stop-contacting-you/
- https://www.solosuit.com/posts/eleven-word-phrase-stop-debt-collectors
- https://files.consumerfinance.gov/f/documents/102012_cfpb_fair-debt-collections-practices-act-fdcpa_procedures.pdf
- https://www.incharge.org/debt-relief/debt-settlement/negotiating-with-creditors/
- https://www.ftc.gov/legal-library/browse/rules/fair-debt-collection-practices-act-text
- https://www.credit.com/blog/what-is-609/
- https://www.solosuit.com/posts/debt-sold-to-collection-agency
- https://www.nolo.com/legal-encyclopedia/debt-collection-defense-requiring-that-the-collector-document-the-debt.html
- https://time.com/personal-finance/article/what-is-a-charge-off/
- https://www.experian.com/blogs/ask-experian/can-paying-off-collections-raise-your-credit-score/
- https://www.incharge.org/debt-relief/credit-counseling/bad-credit/know-your-rights-with-debt-collectors/
- https://www.lexingtonlaw.com/education/does-paying-collections-improve-score
- https://www.consumerfinance.gov/ask-cfpb/should-i-share-personal-information-with-a-debt-collector-en-2098/
- https://www.bankrate.com/personal-finance/credit/how-to-rid-credit-report-of-old-debt/
- https://www.consumerfinance.gov/rules-policy/regulations/1006/34/
- https://consumer.ftc.gov/articles/what-do-if-debt-collector-sues-you
- https://www.consumerfinance.gov/ask-cfpb/can-debt-collectors-collect-a-debt-thats-several-years-old-en-1423/
- https://guides.sll.texas.gov/debt-collection/know-your-rights
- https://www.creditkarma.com/advice/i/long-collections-credit-report
- https://receivablesinfo.com/2022/03/08/the-main-differences-between-first-and-third-party-collections/
- https://www.equifax.com/personal/education/debt-management/articles/-/learn/how-to-bypass-debt-collectors/
- https://www.fdic.gov/resources/supervision-and-examinations/consumer-compliance-examination-manual/documents/7/vii-3-1.pdf
- https://money.usnews.com/credit-cards/articles/will-paying-off-a-collection-amount-improve-your-credit-score
- https://www.creditninja.com/blog/can-you-have-a-700-credit-score-with-collections/
- https://whlawoffices.com/blog/things-debt-collection-agency-cant-do/
- https://www.consumerfinance.gov/ask-cfpb/what-laws-limit-what-debt-collectors-can-say-or-do-en-329/
- https://gocardless.com/guides/posts/debtors-and-creditors/
- https://www.lendingtree.com/credit-repair/how-to-remove-collections-from-credit-report/
- https://www.stepchange.org/debt-info/debt-collection/can-debts-be-sold-on.aspx
- https://www.investopedia.com/the-importance-of-a-debt-validation-letter-5114040
- https://www.farmermorris.com/faqs/why-you-should-never-pay-collection-agency/
- https://www.solosuit.com/posts/how-long-respond-debt-validation
- https://www.experian.com/blogs/ask-experian/can-a-collection-agency-legally-put-their-account-on-my-credit-report/
- https://www.nerdwallet.com/article/finance/get-collections-off-credit-report
- https://wallethub.com/answers/cs/how-to-remove-collections-from-credit-report-without-paying-2140646704/
- https://www.solosuit.com/posts/debt-collector-prove-court
- https://www.consumerfinance.gov/ask-cfpb/can-a-debt-collector-still-collect-a-debt-after-ive-disputed-it-en-338/
- https://www.thebankruptcysite.org/resources/should-i-ignore-a-debt-collectors-calls-and-letters.htm
- https://www.ramseysolutions.com/debt/how-to-pay-off-collections
- https://upsolve.org/learn/should-i-pay-debt-collector-or-original-creditor/
- https://www.investopedia.com/articles/personal-finance/121614/5-things-debt-collectors-are-forbidden-do.asp
- https://www.solosuit.com/posts/do-debt-collectors-give-up
- https://www.consumerfinance.gov/ask-cfpb/what-is-harassment-by-a-debt-collector-en-336/
- https://www.consumerfinance.gov/ask-cfpb/what-information-does-a-debt-collector-have-to-give-me-about-the-debt-en-331/
- https://upsolve.org/learn/happens-dont-pay-collection-agency/
- https://www.nolo.com/legal-encyclopedia/debt-validation.html
- https://www.fullmanfirm.com/2023/01/the-truth-about-debt-validation-requests/
- https://www.credit.com/blog/does-paying-off-collections-improve-credit-score/
- https://oag.ca.gov/consumers/general/debt-collectors
- https://www.farmermorris.com/faqs/11-word-phrase-to-stop-debt-collectors/
- https://www.solosuit.com/posts/answer-summons-debt-collection-california
- https://www.abi.org/feed-item/most-common-violations-of-the-fair-debt-collection-practices-act
- https://www.peopleslawiowa.org/index.php/research-topics/consumer-law/debtorcreditor-law/what-do-debtor-and-creditor-mean
- https://www.bankrate.com/personal-finance/credit/when-does-old-debt-fall-off-credit-report/
- https://www.investopedia.com/terms/c/creditor.asp
- https://www.investopedia.com/personal-finance/debt-settlement-cheapest-way-get-out-debt/
- https://www.consumerfinance.gov/ask-cfpb/what-can-i-do-if-a-debt-collector-contacts-me-about-a-debt-i-already-paid-or-dont-think-i-owe-en-1403/
- https://www.nolo.com/legal-encyclopedia/handling-debt-collection-calls-dos-donts.html
- https://www.debt.org/credit/collection-agencies/how-to-negotiate/
- https://www.creditkarma.com/personal-loans/i/what-is-creditor
- https://uwaterloo.ca/web-resources/wcms-users/training-and-support/wcms-how-documents/validation-rules
- https://www.credit.com/blog/does-your-old-debt-have-an-expiration-date/
- https://www.consumerfinance.gov/ask-cfpb/what-may-happen-if-i-ignore-or-avoid-a-debt-collector-en-1427/
- https://www.debt.org/credit/collection-agencies/how-to-pay-debt-in-collections/
- https://www.moneymanagement.org/blog/understanding-the-statutes-of-limitations-on-debt
- https://www.nolo.com/legal-encyclopedia/a-collection-agency-debt-can-i-negotiate-the-original-creditor.html
- https://www.experian.com/blogs/ask-experian/credit-education/improving-credit/how-to-rebuild-credit/
- https://www.wftv.com/consumer/clark-howard/heres-how-to-send-a-drop-dead-letter-to-a-collection-agency/796114803/
- https://www.solosuit.com/posts/what-collection-agency-owns-your-debt
- https://www.alllaw.com/articles/nolo/bankruptcy/debt-verification.html
- https://upsolve.org/learn/debt-validation-verification-letter/
- https://www.federalreserve.gov/boarddocs/supmanual/cch/fairdebt.pdf
- https://www.consumerfinance.gov/ask-cfpb/how-do-i-get-a-debt-collector-to-stop-contacting-me-en-1411/
- https://www.businessinsider.com/personal-finance/how-to-remove-collections-from-credit-report
- https://www.consumerfinance.gov/ask-cfpb/what-is-an-original-creditor-and-what-is-the-difference-between-an-original-creditor-and-a-debt-collector-en-1387/
- https://www.usatoday.com/money/blueprint/credit-cards/what-is-pay-for-delete-and-how-does-it-work/
- https://www.moneymanagement.org/blog/can-a-debt-collector-collect-more-than-it-shows-on-my-credit-report
- https://www.debt.org/credit/collection-agencies/collection-agencies-never-pay/
- https://www.nolo.com/legal-encyclopedia/negotiating-with-collectors-unsecured-debts.html
