Writing a Debt Validation Letter

The art of writing a debt validation letter is not as hard as it may sound. This is one of the most important tools of the industry for clearing off personal and business debt and needs to be understood completely before the first letter is written. Debt validation letters are just what they seem to be, a customer is either validating or disputing the validity of said debt per letter-form. The process in which this is gone about is listed below.

Steps to Writing a Great Debt Validation Letter

  • List Everything from the Big Three Credit Reporting Agencies
  • Separate that List into Credit Card Living Expenses Other
  • Accumulate Addresses and Contact Information for Each Debt
  • Obtain Business Envelopes and Plenty of Stamp’s

Before mailing out a single letter to a personal or commercial debt company, make sure that you are well-versed in the method for writing such a letter. In the past and probably to this day many businesses and individuals spread the word that erasing your debt was as easy as constantly and consistently sending out debt validation letters and waiting for that one time that the debt company did not respond.

Although this may have worked in a very small percentage of cases, normally any adequate and well-run business that is owed money would make sure that their $8-$9 an hour customer service person did not miss a single letter. Presently, the percentage of those individuals or families that had even one or two of the debts that were true and valid erased from their credit files, hovers around 3 to 5%. That is not the reason for writing debt validation letters.

The overall reason for creating a great debt validation letter is not to have true and valid debts removed but to understand that there is a legal and viable process towards removing erroneous credit entries.

Please understand that in this world of instantaneous credit reporting and virtually billions of entries each and every day, it makes sense to understand and be able to create a debt validation letter and keep an eye on all the credit reporting agencies for correctness. In this manner, you can be proactive in your credit file and take the hits and be credited for the earned good benefits of paying off a debt on time each and every time, and not be erroneously affected.

The process is relatively cut and dry and starts off with the creation of a debt validation letter responding to a collections company sending you a notice of debt. If this debt is indeed erroneous and or there are other situations and complications that make this debt not your total responsibility, then it is time to start the debt collections debt validation letter process in motion.

Once you create the debt validation letter, which states that you require every bit of information recorded on that debt in your name delivered to you within 30 days or that debt needs to be taken off your credit file.

The factors in a debt collection letter that need to be returned to you within 30 days are verification of debt, contract and statements on the account in question, showed payments and what balance is due. Another factor that the collection agency must put in a response to your debt validation letter is that the debt has been given to them to collect on legally.

Once the collections company receives your handwritten or typed data validation letter, they have to respond as quickly as possible and less than 30 days from receipt of your letter. This is why it’s important to certify or have a signature for the delivery of your all-important debt validation letter as this could mean thousands if not tens of thousands erased from your credit file that was not yours in the first place!

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