Debt validation, or "debt verification", refers to a consumer's right to challenge a debt and/or receive written verification of a debt from a debt collector. The right to dispute the debt and receive validation are part of the consumer's rights under the United States Federal Fair Debt Collection Practices Act (FDCPA) and are set out in §809 of that act, which has been codified in Title 15, Section 1692-1692p of the United States Code.[1] This debt validation procedure was expected to reduce the incidence of debt collectors dunning the wrong person or attempting to collect previously paid debts.[2]

Within five days of its first communication to you, the debt collector is required to send a written debt validation notice to you. This notice will state ​your right to dispute the validity of the debt within 30 days. The FDCPA allows the collector to include the debt validation notice in the initial communication if that communication is a letter. If the debt collector’s first communication with you is a phone call, you should receive a debt validation letter from them within five days. If you don’t dispute the debt in writing within 30 days, the debt collector has the right to assume the debt is valid. During the 30-day period, the collector can continue attempts to collect the debt from you until it receives your validation request. The process from start to finish is 9 to 12 months.

Initially, your credit will be affected by debt validation. However, once the process is complete, you are provided with letters from creditors as proof of zero debt owed. Those can then be sent to the credit agencies to make required adjustements to your credit improving the score.

While each case is different, debt validation is a sound alternative to bankruptcy and debt resolution. The best way to determine individual cases is to contact Luminary Financial for a free consultation.

If the collection agency fails to verify the debt, the debt is no longer considered valid and a status letter is mailed acknowledging the debt is cancelled.

Compared to debt resolution and or bankruptcy, debt validation cost on average 50% of the total debt while the alternatives cost up to 85% of total debt. To find an exact number contact Luminary Financial for a free consultation.

The process consist of 5 steps (General Process): 1. Contact Luminary Financial and get your free consultation. 2. Stop paying credit cards and proceed to default. 3. Send out validation letters and wait for responses. 4. Upon recieving account closed letters, send to credit agencies to clear records. 5. Live your life the way you want without the worry of creditor harrsement and stress.