One of the most powerful protections offered to consumers under the Fair Debt Collection Practices Act (FDCPA) is the ability to require a debt collector to validate a debt by providing proof that it is legitimate. While this requirement is a great way for consumers to protect themselves, many misinformed debtors do not exactly understand how debt validation really works.
In order to get a better understanding of debt validation, let’s take a closer look at five of the most common misconceptions when it comes to consumers protecting themselves against debt collectors. As you will see, the rules are pretty straightforward, but they might not work exactly the way that you thought they did.
Debt Validation Letters Can Be Sent at Any Time
The first misconception that we see from consumers time and time again is the belief that they can fire off a validation letter at any time during the collection process and force the debt collector to stop what they are doing and provide more proof that the debt is legitimate.
But according to the FDCPA, debt validation letters must be sent within 30 days of the initial communication from the debt collector to the consumer. If more than 30 days has passed since that initial communication took place, then the debt collector is free to conduct their business as they see fit.
Entries on Consumer Credit Reports Can Be Considered Initial Communication
Another common misconception is that a debt collector making an entry on a consumer credit report qualifies as initial communication. While there is some debate about exactly where the lines are drawn here, it is generally accepted that adding entries to a consumer’s credit report does not qualify as direct communication with that consumer.
With that in mind, just because a debt collector made an entry on a consumer’s credit report, they did not necessarily establish an initial communication. And if there was an initial communication established before the debt was added to the credit report, the date of the initial communication comes to be far more important than the date of the entry on the credit report.
Debt Collectors Have 30 Days to Respond to Validation Letters
Many consumers also believe that a debt collector must respond to their validation letter within 30 days of receiving it. However, the FDCPA does not specify any amount of time that is required for a debt collector to respond to a consumer’s validation letter. They are simply not permitted to continue with any collection efforts until they provide validation of the debt.
That means that a debt collector could go for months or even years before responding to a validation letter, and as long as they refrain from any attempt to collect the debt, they are within their rights to do so.
Consumers Must Reference the FDCPA
It is also a common belief that consumers should reference particular passages of the FDCPA in their validation letters. This is often suggested as a way of showing collectors that the consumer knows their rights and isn’t going to back down. But all debt collectors are required to follow every detail established by the FDCPA whether it is mentioned in the validation letter or not, and any debt collector that refuses to do so is opening themselves up for a tsunami of legal problems.
Debt Collectors Must Provide Details About the Debt
The exact definition of validating a debt is another area where many courts have differed in their interpretation of the FDCPA over the years. But one constant misconception has been the idea that collectors must provide detailed information about a debt in order to meet validation requirements.
In most courts, a simple statement or bill that displays the consumer’s information and clearly states the debt, along with any additional charges, is typically enough to validate a debt.
Whether you are a consumer looking to protect yourself or a debt collector that wants to play by the rules, having a detailed understanding of each of these common misconceptions will put you on solid footing when it comes time to either ask for validation or provide it. And that is why the FDCPA was established in the first place.
