What is Debt Validation?

If a collection agency or attorney (CA) continues any collection efforts prior to validating the debt, they are in violation of the FDCPA. And, if they violate the FDCPA in this way, you can sue them for statutory damages. The court must award you an automatic win of $1000. To see how to do this read the section "Prove a Debt Collector is in Violation and Win $1000".

CAs often practice unscrupulous and aggressive tactics. For this reason, DV has become a popular solution to reduce and even eliminate debts. In fact, it has been successful in stopping collection activities about 80% of the time. The only time DV will not work is if an assigned debt collector gives the debt back to the original creditor (in which case, you cannot use DV) or if the CA validates the debt with adequate proof.

DV is distinct from other debt-reduction strategies such as debt settlement and Chapter 13 bankruptcy because DV allows the consumer to establish an affirmative stance against particular debts right from the beginning. This is important for two reasons: a) it strengthens a consumer's position when negotiating and settling a debt in the future; and, b) in the event the consumer is sued by the CA, it gives them an affirmative defense to possibly have the case dismissed. We'll discuss this more in "The Debt Validation Process."

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