Debt Validation Letter Template: Stop Collectors in 30 Days

You just received a letter from a debt collector. You don’t recognize the debt, or worse, you’re not sure it’s even yours.

Debt collection letters often arrive without warning. Many collectors use threatening language to pressure you into paying immediately.

Don’t panic. You have rights under federal law.

Your first move is sending a debt validation letter. This letter forces the collector to prove the debt belongs to you. You must send it within 30 days of their first contact.

Once they receive your letter, all collection activity stops. They must provide documentation proving they own your debt and showing the exact amount you owe.

If they can’t validate the debt with proper evidence, they must stop contacting you. They cannot report negative information to credit bureaus either.

Our partner Solo can help you respond to debt collectors and protect your rights.

Why Sending a Debt Validation Letter Protects Your Rights

The Fair Debt Collection Practices Act (FDCPA) gives you 30 days to dispute any debt. This protection exists specifically to help you fight back against aggressive collectors.

Without a debt validation letter, collectors will use every tool available. They’ll call you at home and work. They’ll send endless letters and emails. Some even contact you through social media.

When you don’t respond, they may sue you. If they win in court, they can garnish your wages. They can freeze your bank account. They can even seize your property.

A debt validation letter stops everything immediately. The collector must halt all collection activities until they prove you owe the debt.

Here’s a startling fact: 53% of consumers receive collection letters for debts they don’t believe they owe, according to the Consumer Financial Protection Bureau.

You shouldn’t pay for debts that aren’t yours. A debt validation letter puts the burden of proof on the collector, not you.

What to Include in Your Debt Validation Letter

Your letter should request specific information. The collector must provide clear evidence before continuing their efforts.

Request all of the following details:

• Proof that the debt belongs to you
• The total amount you allegedly owe
• The age of the debt
• Their debt collector license number
• Proof they can legally collect in your state
• Documentation showing the statute of limitations hasn’t expired
• The last action you took on the account

You can also request they stop contacting you entirely. They can only reach out if they plan to file a lawsuit.

If the collector violated FDCPA rules, mention it in your letter. Violations include calling repeatedly at odd hours or harassing you at work. You can threaten legal action for these violations.

Send your letter as soon as possible. The 30-day window starts from their first contact with you.

How to Write a Debt Validation Letter

Writing this letter is simpler than you think. Follow this basic structure:

Start with contact information for both parties. Include your name, address, and the collector’s details.

In the body of your letter, include these elements:

• Specify how the collector contacted you (letter, phone, email)
• Provide enough information to identify the debt (account number if available)
• State clearly that you dispute the debt
• Request they stop contacting you except to validate the debt
• Ask them to report to credit bureaus that the debt is disputed
• List all the verification details you’re requesting
• State they should only contact you to notify you of a lawsuit
• Mention potential legal action if they violate FDCPA rules

Our partner Solo can help you create a customized debt validation letter quickly. Answer a few questions about your debt and receive a letter tailored to your situation.

Will the Debt Collector Respond to Your Letter?

Collectors may or may not respond. Some don’t have the information needed to validate your debt under FDCPA regulations.

If they can’t prove you owe the debt, you won’t hear from them again. They must cease all collection activities.

Other collectors will have the documentation they need. If they validate the debt, they can continue contacting you unless you explicitly tell them to stop.

When you request no further contact, they can only reach out to notify you of a lawsuit.

Should You Pay if They Validate the Debt?

You have three options when a collector validates your debt. You can pay in full, negotiate a settlement, or do nothing.

If your debt reached collections, the original creditor likely reported it negatively. Your credit score already took a hit. Paying in full won’t significantly improve your credit at this point.

However, paying in full sometimes makes sense. Some creditors won’t accept reduced payoffs. You’ll need to arrange payments or pay the full amount.

Negotiating a Settlement

You can offer a lump-sum payment to settle the debt for less. Debt collectors buy debts for pennies on the dollar. They often accept less than the full amount.

Start your offer low. Begin at 15% of the original debt value. The collector may accept or counter your offer.

Many collectors accept 50% of the original debt value. Some go lower depending on the debt’s age and amount.

Taking no action after validation may lead to a lawsuit. If the statute of limitations hasn’t expired, collectors have the right to sue. You could receive a court summons within weeks.

Can You Dispute a Validated Debt?

Yes, you can still dispute a debt after validation. You’ll need a credible defense though.

Valid defenses include:

• You’re a victim of identity theft
• The statute of limitations expired
• You’re only an authorized user on the account
• You have no business relationship with the collector

Identity theft victims shouldn’t pay debts they didn’t create. Send evidence of your identity theft report to the FTC and local law enforcement.

If the statute of limitations expired, collectors can’t take legal action. They can still contact you and report to credit bureaus though.

Authorized users didn’t sign the original credit agreement. You shouldn’t be responsible for paying the debt.

You can argue you have no business relationship with the collection agency. Your original agreement was with a different creditor. The collector will likely argue they purchased the debt legally.

Can You Send a Debt Validation Letter After 30 Days?

You can send a validation letter after 30 days. However, you may lose some FDCPA protections.

After 30 days, collectors can assume their notice is valid. They can use all available options to collect from you.

Don’t let fear stop you from responding. Send your validation letter as quickly as possible. You put the burden of proof on the collector.

Many collectors drop debts that require too much work. You won’t know unless you challenge them.

Even after 30 days, a validation letter shows you’re informed about your rights. Collectors may decide pursuing you isn’t worth the effort.