Original creditors must also follow debt collection rules when attempting to collect a delinquent debt.
The Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA) are key federal laws regarding these issues.
Moreover, the letter is not capable of helping put a stop to the harassment from a collections agency.
Having a debt verification letter alone is not sufficient to stop debt collection.
However, it does not include a clear definition as to what constitutes a legitimate debt validation.
In lieu of this ruling, a consumer has the ability to send a letter to his creditor or collectors, requesting the confirmation of information reflecting his penalized account.
It is the responsibility of each debtor to get to know the difference between such terms so they will have no trouble complying with them.
The collections agency can still abide by FDCPA laws and continue collection activity and taking advantage of individuals who attempt to use the credit reporting system without understanding it thoroughly.
Debt Validation Going back to the earlier issue with the FDCPA and its lack of a clear definition of what compromises a debt validation letter, collections agencies can theoretically provide any account documentation to a consumer.
What these Letters can do in Court In the event of a court procedure, a legitimate debt verification letter is the only acceptable documentation which proves that a consumer owes the debt.
Because a debt verification letter does not prove anything, it is useless to bring one.
Even though the two terms can be used in lieu of one another, there is an important difference between a legitimate debt validation letter and a debt verification letter.