The Right to Validate A Deb

Sorry if this is a little long, but I found this info helpful and figured I would share it here.


Found this while studying my issues:
Under the fdcpa, you are allowed to validate this debt, and the creditor (in this case, the collection agency) must show you proof that you owe the debt to the collection agency (not to the original creditor.

Plus, they must show proof positive that you owe them this debt. It's not enough to send you a computer-generated printout of the debt. There is an opinion letter from the FTC to back this up:


Nor can they ask you to pay for digging up records of your debt:



Division of Credit Practices

1. Section 808 of the Act sets out practices that are unfair or unconscionable, including:

(1) The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.

So, if a creditor can't verify a debt:

* They are not allowed to collect the debt,
* They are not allowed to contact you about the debt, and
* They are also not allowed to report it under the Fair Credit Reporting Act (FCRA). Doing so is a violation of the FCRA, and the FDCPA states that you can sue for $1,000 in damages for any violation of the Act.

The opinion letter from the FTC which clearly spells out that a collection agency CANNOT report a debt to the credit bureaus which has not been validated:



It also states that you can sue in federal or state court. So if you have them on five violations, then you have damages of $5,000. Small claims court, anyone?

Jerry