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Collections Law/Trying To Determine Valid Debt Validation From Collectorrs

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Expert: Michael Brotherton - 11/9/2008


Question
Thanks for your time. Basically, I wanted to know if a collector, who uses their letterhead to specify when the account was obtained/etc, is using proper validation or if they need to provide something that comes directly from the original creditor?

I received 'validation' from a collection agency that sent me nothing more than printouts of my phone calls. Nothing official, it was quite sloppy. Would that qualify as acceptable validation or would I be allowed to request more from a debt validation letter?

Thanks again for your time, Michael

Answer
This is a big problem in the industry as there is no real definition in the law which spells out what is considered sufficient validation. Even the court process is vague on the issue when a creditor files suit and the debtor disputes the debt the lender doesnt have to provide original documents or a detailed statement of account which in my book should be required.

In most cases a copy of a statement or a letter from the original creditor can be considered sufficient. I disagree with it but until someone challenges the law and wins this is as good as it gets. There probably isnt much else you can do short of subpoenaing records which is still going to be a fight.

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Michael Brotherton

Expertise

Consumer/Debtor Rights Advocate. Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years. Mike is well versed in Loss Mitigation practices and the legal collection process. He has helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com. FinancialEmergency.com is a consumer web site which actively promotes Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY. Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be. Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems. www.financialemergency.com (copy and paste in browser).

Experience

Over 40 years combined experience negotiating disputes and resolving financial issues related to consumer debt, corporate issues and mortgage modifications.

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