When it comes to collections, you have a very important right as outlined in the Fair Debt Collection Practices Act: The right to have a collection account "validated."
This process, as outlined in the FDCPA, is quite different from the "verification" process referred to above. When a credit bureau asks a creditor to "verify" information, the investigation that follows can be pretty cursory. The creditor reviews its records and any information supplied by the consumer and then decides whether it (the creditor) was right or wrong.
When a collection agency is asked to validate a debt, by contrast, the process can get pretty involved. The collector must prove that the debt is your responsibility, and also that they have the legal right to collect it from you. Furthermore, the collector has to cease all collection activity until they provide this evidence to you. If the agency can't validate the debt, it must end its attempts to collect on the debt and stop reporting the collections account to the credit bureaus.
Note that your right to validation applies specifically to collection agencies, not to the original creditor. Collection agency records are presumed to be less reliable than those kept by the original creditors. Collectors are often guilty of going after the wrong people or misstating the amounts owed; the validation process is meant to protect consumers from those practices.
To validate a debt, the collector needs to present documentation - obtained from the original creditor - proving that you do indeed owe the money. Validation can be a powerful weapon in your fight to clean up collection actions on your credit report. Many times collectors don't have the documentation required, especially if the debt has been passed around from one collection agency to another, as often happens. Frequently, they have little more than a computer printout to back up their claims, and the Federal Trade Commission has made it clear that such a "mere itemization" isn't sufficient proof to constitute a validation of a debt.
The validation process can not only help you eliminate collection accounts that don't belong to you, but it might help you get rid of some that actually do. That last statement might surprise you, particularly if you've heard the credit bureau company line that you can't legally remove true, negative information from your credit report.
You will find that sometimes - not always, but sometimes - you can get accurate information removed from your file, especially if it has to do with an old collection account. Now, the bureaus and Fair Isaac will tell you that this isn't "playing fair" - that the integrity of the credit system depends on credit reports reflecting the most complete picture possible, including all available negative and positive information.
Benefits Of A Debt Management Plan
A) Are acceptable to all your creditors.B) Leave you enough money to handle your living expenses.C) G...
benefits-of-a-debt-management-plan.php
A List Of Rights You Have Against Debt Collectors Part 2
1. Falsely stating or implying that the debt ...
a-list-of-rights-you-have-against-debt-collectors-part-2.php
Staying Out Of Debt With The Irs At Tax Time
You may have income not subject to withholding, such as dividends, interest, income from side...
staying-out-of-debt-with-the-irs-at-tax-time.php
Benefits Of Working With A Credit Counseling Agency Part 1
A) Detail what you owe.B) Give you an organized picture of your financial situation.C) Provide options th...
benefits-of-working-with-a-credit-counseling-agency-part-1.php
A List Of Rights You Have Against Debt Collectors Part 3
1. Collecting any money at all - such as interest, late fees, or any charges other than the principal am...
a-list-of-rights-you-have-against-debt-collectors-part-3.php
All Women Need To Read This Understanding The Equal Credit Opportunity Act
One of the main problems with the ECOA is that it is diffic...
all-women-need-to-read-this---understanding-the-equal-credit-opportunity-act.php
Talking With A Creditor 5 Steps Of The Negotiation Cycle
Your bargaining power in this technique is your ...
talking-with-a-creditor---5-steps-of-the-negotiation-cycle.php
4 Ways To Help Boost Your Credit Score
1. Try to Get Positive Accounts Reported: You kno...
4-ways-to-help-boost-your-credit-score.php
Getting A Bad Credit Loan
Getting a bad credit loan is not an easy task but it is a doable one. Often people do not realize th...
getting-a-bad-credit-loan.php
Filing For Bankruptcy Which Plan Is Right For You
Filing a Chapter 7 bankruptcy can mean you have to give up some of you...
filing-for-bankruptcy---which-plan-is-right-for-you.php
It's Tough To Save Money When You Are Already Broke But You Can Do It
You are probably thinking at this very moment: ...
it's-tough-to-save-money-when-you-are-already-broke-but-you-can-do-it.php
Are You A High Risk Or Low Risk Credit Applicant Understanding Your Fica Score
Credit scoring uses your credit history to evaluate the likelihood of your loan going int...
are-you-a-high-risk-or-low-risk-credit-applicant---understanding-your-fica-score.php
Ways To Get Out Of Debt & Save Money Part 1
Understand that there are monthly expenditures that you may not be able to change immediately, for e...
ways-to-get-out-of-debt-&-save-money-part-1.php
How To Build Credit In Your Own Name After A Divorce
Getting credit in your own name is also an excellent str...
how-to-build-credit-in-your-own-name-after-a-divorce.php
Financial Records Create An Effective Filing System
• Banking records (including checking and savings accounts)• Bills paid (where you file regular monthly expenses...
financial-records---create-an-effective-filing-system.php
Resourcesother
...
resourcesother.php
Ways To Get Out Of Debt & Save Money Part 2
Once It's in Savings, Leave It There: A good rule of t...
ways-to-get-out-of-debt-&-save-money-part-2.php
The Benefits Of Keeping An Open Checking Account
A savings or money market account, too, will improve your standing with creditors. Even if you never...
the-benefits-of-keeping-an-open-checking-account.php
Whats The Best Time To Negotiate With Creditors
If your credit is already shot, at other times, it's often more advantageous to negotiate with credi...
whats-the-best-time-to-negotiate-with-creditors.php
Saving Money And Becoming Debt Free Requires Deep Changes
Once you get to the point where you believe that budgeting and savin...
saving-money-and-becoming-debt-free-requires-deep-changes.php
Benefits Of Working With A Credit Counseling Agency Part 2
A good credit counselor offers solutions with your future goals in focus. A solution that works best for you is one...
benefits-of-working-with-a-credit-counseling-agency-part-2.php
What To Do When There Is A Bank Error In Credit Reporting
Credit reporting is an important tool that banks use to ensure the...
what-to-do-when-there-is-a-bank-error-in-credit-reporting.php
The Importance Of Keeping Good Financial Records
Personally speaking, I'm pleased to be able to say that I can fin...
the-importance-of-keeping-good-financial-records.php
The Shocking Truth Behind Credit Report Inaccuracies
According to a number of consumers groups in the United States, many credit reports are filled with inaccuracie...
the-shocking-truth-behind-credit-report-inaccuracies.php
Innovis The Credit Report You've Probably Never Heard Of
As recently as 2003, Innovis denied that it was actually in the c...
innovis---the-credit-report-you've-probably-never-heard-of.php
Applying For A Credit Card Check Out These 5 Comparison Shopping Tips
Here's what you should look for in a credit card:...
applying-for-a-credit-card---check-out-these-5-comparison-shopping-tips.php
How Being Frugal Can Help You Gain Financial Independence
Being a cheapskate doesn't mean you can't enjoy life; it ...
how-being-frugal-can-help-you-gain-financial-independence.php
8 Solid Tips When Applying For Credit Cards
1. Be consistent with the name you use. Use your middle initial always or never. Always use...
8-solid-tips-when-applying-for-credit-cards.php
5 Questions You Must Ask A Credit Counseling Service Before Deciding
Credit counseling is not a good option if you're current on your bills and able to pay more than the minimums. Credit ...
5-questions-you-must-ask-a-credit-counseling-service-before-deciding.php
Relationships And Money Research Your Partners Debts Before Making Big Choices
Understand that even though you may be living off one paycheck, it should be easier to control and tr...
relationships-and-money---research-your-partners-debts-before-making-big-choices.php
Learn How To Have Your Student Loans Canceled
The student loan scheme is quite complex, depending on the type of loan you have and when you obtained it. ...
learn-how-to-have-your-student-loans-canceled.php
Ways To Get Out Of Debt & Save Money Part 3
If you can, select a certain percentage of your income, for example 20% of your...
ways-to-get-out-of-debt-&-save-money-part-3.php
What Are Rapid Rescoring Services How Can They Help My Credit
1. They can't deal with you directly as a consumer - Rapid rescoring is typically offered by small credit reporti...
what-are-rapid-rescoring-services-how-can-they-help-my-credit.php
Why Do So Many Adults Have A Hard Time Managing Their Money
Remember back in high school when you were learning calcul...
why-do-so-many-adults-have-a-hard-time-managing-their-money.php
Myth Closing Credit Accounts Will Help Your Score
Of course, if you think about it, what's kept you from racking ...
myth---closing-credit-accounts-will-help-your-score.php
Are You Unemployed Learn The Smart Way To Utilize Your Credit & Your Cash
Prospective employers often pull a credit report as part of the employment process, so to maxim...
are-you-unemployed---learn-the-smart-way-to-utilize-your-credit-&-your-cash.php
Links Page
...
Links-Page.php
Disputing With Credit Bureaus Know Your Rights
The FCRA provides a list of rights and procedures that will assist...
disputing-with-credit-bureaus---know-your-rights.php
How Identity Theft Can Crash In Innocent Persons Credit
Thieves tend to do the most damage when they can take over your identity wholes...
how-identity-theft-can-crash-in-innocent-persons-credit.php
A List Of Rights You Have Against Debt Collectors Part 1
1. Can't tell third parties, such as your boss or neighbors that they're trying to r...
a-list-of-rights-you-have-against-debt-collectors-part-1.php
Learn How To Read Your Credit Report
These days, bad marks on your credit report can determine whether you land the job you're applying f...
learn-how-to-read-your-credit-report.php
Questionnaire To Determine If Your Future Spouse Is Financially Compatible
1. What is your annual income?2. How much money do you currently have in your checking account?3. If you have a savin...
questionnaire-to-determine-if-your-future-spouse-is-financially-compatible.php
