Debt Validation Letters
In this advanced age when everything has become digital, people send and receive letters and notifications on emails. Smart phones and internet have made our lives so easier that we can perform almost all tasks using a smart phone from transferring funds into bank account to paying utility bills to booking flight to order food from a restaurant. Still there are some areas and companies that use old school mail system for communication. Mostly finance departments and credit companies use the postal mail system. A very common letter that you might receive in your mailbox is a debt validation letter. This letter is sent by a debt collection agency and it notifies you that you owe some money to a credit company or bank and you are required by law to pay-up the amount within a specified period of time. Keep in mind that there can be multiple errors in a debt validation letter so it’s really important that before making a commitment to pay-up the debt, you send a debt verification letter, and only after verifying your debt, you make the payment.
Key elements of a debt validation letter:
- Name of the client or receiver with complete details
- Name of the creditor or company to whom the money is owed
- Date on which the letter is sent
- Name of the sender of the letter i.e. debt collection agency
- Amount of debt to be paid
- Clear statement including time period to dispute the debt or it will be considered valid
- Clear statement that upon your request, debt collection agency will issue debt verification letter
- Clear statement that you can ask for the name of the creditor if not mentioned in the letter
How to write a debt validation letter?
Here are some tips on creating a good debt validation letter.
- Check samples and use a template:
A debt validation letter is a formal and legal document and a small mistake in this letter can lead to serious consequences. This means you need to be well aware of what you include and how you present information in this letter. If you are not sure, you can look for samples to see what a debt validation letter includes or better; use a readymade template. These templates are available on the internet and you can download them to fill out and send to debtors.
- Prepare the letter on behalf of the creditor:
Banks and credit card companies usually don’t go after their clients in order to collect debts but they hire third parties known as debt collection agencies. These are the professionals who understand how to deal with bad debts and approach each client with caution and professionalism to ensure he agrees to pay-up the debt he owes. While sending the debt validation letter, you should speak on behalf of your client or creditor i.e. bank or credit agency.
- Details of the debtor:
The letter should include full details of the receiver of the letter. It’s not a good idea to send a generic letter without knowing the name of the receiver because most people treat these letters as spam and junk. In this part, you should mention full name of the receiver, his contact details and address.
- Details of the debt owed by the receiver:
Then there is the part where you mention the exact amount of debt owed by the receiver of the letter. This amount can be in any fiat currency i.e. USD or YEN or EUR depending on where you are located around the world. While mentioning the amount owed, make sure to state it in words and figures in order to eliminate any misunderstanding or error.
- Final statements:
After that, there are a couple of statements that you need to include in the debt validation letter. First statement specifies that after receiving the letter, the receiver has a time period of 30 days to respond and dispute for the verification. If this duration is ended, the debt is considered valid and then the debtor can’t request for debt verification. Another statement states that if the debtor is not fully sure of the amount he owes, he can request for debt verification letter and you are required by law to respond to the request immediately. The final statement states that upon request, you are required by law to give details of the creditor which were not mentioned in the letter in the first place.
Debt Validation Letter To Original Creditor
Here is some professional Debt Validation Letter Templates.
Debt Validation Letter PDF