Wisconsin Lawyer Blog

It has been observed quite often that you are asked to pay for a debt that you don’t owe. Under such circumstances, you can validate your debt. Debt validation is the process in which you can challenge the collection agency’s claim that you owe money. Debt validation proves whether you legally owe money or not.

However, you should know your rights related to debt validation. When the creditor or the collection agency sends you a letter asking you to pay up for the debt, you can make use of debt validation to prove that you don’t owe money.

How does debt validation work?

You can get your debt validated in the following manner –

• You can request the collection agency to validate the debts. There are many sample letters available online that can give you an idea as to how you should be dealing with your collection agency and the format of the letter that you should follow.
• Once you receive the letter from the collection agency make sure that the collection agency you are dealing with is authentic and licensed. It is also important to find out if you are residing in a state that requires the collection agency to be licensed.
• In case you find out that the collection agency urging you to pay up debt isn’t licensed as per state laws, convey the same to the collection agency and inform them that they may have to face legal prosecution for violating state laws.
• As per norms laid down by the FCRA, collection agencies are not allowed to send any negative information to the CRAs or the credit reporting agencies unless they are successful in validating your debts.

To get more information on this, contact with a reputed Debt Collection law firm. and hope you that will help you a lot.

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