Debt validation is where you try to find out whether the collection agency has the legal right to collect on the debt by asking them to provide you with proof. The FDCPA gives you the right to seek validation from a collection agency and not the original creditor. The FDCPA does not govern collection practices of the original creditor.

Under the FDCPA, debt collectors (collection agencies) are required to send you a debt validation notice within 5 days of contacting you to collect a debt. The notice informs you that you have the right to validate/dispute the debt within 30 days of receiving the letter.

We are helping you prove that the alleged debts that you have enrolled into our program are valid debts and that the third-party collection agency may legally collect on that debt. Many times, third-party collection agencies are not able to prove that the accounts they’re attempting to collect on are valid. If they are unable to prove that they have the right to collect on a debt, they are legally no longer able to attempt collection.

The time frame for an account to be sold to a third-party collection agency varies by creditor and account type. Typically, accounts are sold over between 3-9 months from the date of the first missed payment; however, this is not guaranteed.

The Fair Debt Collection Practices Act (FDCPA) is the main federal law that governs debt collection practices. The FDCPA prohibits debt collection companies from using abusive, unfair or deceptive practices to collect debts from you. Under the FDCPA, debt collectors include collection agencies, debt buyers, and lawyers who regularly collect debts as part of their business. There are also companies that buy past-due debts from creditors or other businesses and then try to collect them. These debt collectors are also usually called debt collection agencies, debt collection companies, or debt buyers.

1. The Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. The top three credit reporting agencies that we deal with are Experian, Transunion, and Equifax.

Under the FCRA:

1. You have the right to know what is in your file.
2. You have the right to dispute incomplete or inaccurate information.
3. Consumer reporting agencies must correct or delete inaccurate, incomplete, or unverifiable information.