Bank finance articles and tips

The letter that you send to your creditor or credit collectors to request for confirmation of the information reflected on the account that they require you to pay is called a debt verification letter. In this letter, the details that are requested for verification generally include the debtor's name and address only. And because of that, I personally do not recommend making use of a debt verification letter alone.

The reason being is that any person who gains access to a phone book or internet can generally search and locate for your name and address. And the other reason is that these letters can neither verify the existence of your debt to your creditor or collections agency nor can it bring your collections agency's harassment to an end.

The error that people so often commit is using debt verification letter and debt validation letter interchangeably. When you send a debt verification letter to a third party collections services, what you will receive is a response affirmation of your name and home address. And even if you have sent this letter, you will still likely receive harassing collection calls from the credit collectors. A debt verification letter alone will not stop the debt collection.

Oftentimes, the reality behind those collection agency calls is the attempt made by your creditor and third party collections agency to collect money from you. And most of the time they can pull collections through your insurance.

For that reason, the government formed the Fair Debt Collection Practices Act (FDCPA). This act protects the common good of the people against the collection agency's abusive practices.

And the Fair Debt Collection Practices Act (FDCPA) strongly supports the debt validation letters. Contrary to a debt verification letter, a debt validation letter can demand relevant details that have frequently exposed the fraudulent plans of most debt collectors.

Both the debt verification letter and the debt validation letter constituent a debt dispute letter. With these letters in handy, you can contest the abusive actions of your creditor or collections agency. When you are tired of getting those harassing collection calls, do not hesitate to employ these validation letters.

Remember that through these letters you can discover if the collections agency has a legitimate claim over your account. A debt validation letter is a method where you can demand your creditor or collections agency to prove that you really are in debt.

Allan B. Henry is a debt and credit consultant. He has been in the field of credit repair for a long time. His expertise includes debt validation letters and he maintains a website that talks about debt dispute letters where you can find straightforward explanations to help you understand your position in a debt dispute better.

By Allan B Henry