| Regarding the ability to fix bad credit, consumers have | | | | To validate a debt, the collector needs to present |
| a very important right found in The Fair Debt Practices | | | | documentation - obtained from the original creditor - |
| Act. Namely, consumers have the right to have a | | | | proving that you do indeed owe the money. Validation |
| collection account validated. | | | | can be a powerful weapon in your fight to clean up |
| Outlined in the FDCPA, there is a process known as | | | | collection actions on your credit report. Many times |
| validation and it is significantly different from the | | | | collectors don't have the documentation required, |
| common process of verification. Verification simply | | | | especially if the debt has been passed around from |
| centers on the credit bureau asking a creditor to verify | | | | one collection agency to another, as often happens. |
| information present on a persons account. This is a | | | | Frequently, they have little more than a computer |
| very cursory process that can be dealt with in a rather | | | | printout to back up their claims, and the Federal Trade |
| short amount of time. The creditor will simply review | | | | Commission has made it clear that such a "mere |
| records and then provide it to the agency. The agency | | | | itemization" isn't sufficient proof to constitute a |
| will then decide whether or not the creditor has | | | | validation of a debt. |
| provided accurate information. | | | | The validation process can not only help you eliminate |
| When a collection agency is asked to validate a debt, | | | | collection accounts that don't belong to you, but it might |
| by contrast, the process can get pretty involved. The | | | | help you get rid of some that actually do. That last |
| collector must prove that the debt is your responsibility, | | | | statement might surprise you, particularly if you've |
| and also that they have the legal right to collect it from | | | | heard the credit bureau company line that you can't |
| you. Furthermore, the collector has to cease all | | | | legally remove true, negative information from your |
| collection activity until they provide this evidence to you. | | | | credit report. |
| If the agency can't validate the debt, it must end its | | | | In rare instances, it is possible to use the validation |
| attempts to collect on the debt and stop reporting the | | | | process as a means of removing accurate information |
| collections account to the credit bureaus. | | | | from your credit report. This is mostly the case with |
| Note that your right to validation applies specifically to | | | | old collections information. Some may say this is not a |
| collection agencies, not to the original creditor. Collection | | | | fair method but it is a legitimate one. Basically, you |
| agency records are presumed to be less reliable than | | | | request validation on an old debt and if the debtor |
| those kept by the original creditors. Collectors are | | | | cannot provide the needed information, then it may be |
| often guilty of going after the wrong people or | | | | removed due to lack of validation. Again, this is only |
| misstating the amounts owed; the validation process is | | | | successfully achieved in rare instances but it can be |
| meant to protect consumers from those practices. | | | | done. |