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Debt Validation and Credit Repair: How Are They Connected?

Let’s face it: we all love keeping our money and getting it back if we’ve lent it. Sometimes, during the process of credit repair, you may get a call from a debt repair company asking you to make payment for a debt you may have not known of previously or are not ready to make a payment for at the time.

While there are many genuine and helpful debt collecting companies, there are also ones that are known for their malicious and manipulative nature.

In case you are in a situation where the debt being asked to be collected is not within your knowledge, you may ask the debt collecting company to issue you a debt validation letter.

What Is A Debt Validation Letter?

A debt validation letter is a document that can be requested by a consumer and issued by a debt collector within 30 days of a debt collection request. This allows consumers a window to dispute the debt, in portion or completely. Many agencies proceed to send this letter out to consumers before giving them a call for debt collection.

The debt validation letter is a method that was designed by the Congress under the Fair Debt Collection Practices Act to protect the consumers from being asked to pay debts that were not theirs.

What Should Be Included In Debt Validation?

Once you’ve requested a debt validation letter, the debt collecting agency is bound by law to send you proof of your original debt. This should ideally include an account statement from the original creditor, the initial signed agreement between you as the consumer and the creditor in the form of a contract or credit card application.

The debt collection company also needs to provide you with a signed copy of the contract proving that your debt had been sold or transferred to them by your original creditor.

You, the consumer, should not be charged by the debt collecting company for requesting this information. You can also ask them for any additional supporting documents form the original creditor such as a full payment history between you and the original creditor. Requesting for all this information is well within your legal rights and boundaries.

Where Does Credit Repair Come In?

In case you were being sought wrongfully for a debt that is not yours, you can move forward with a credit repair service to improve your credit score.

Debt validation is an important tool when it comes to credit repair as the dispute letters give you a chance to remove all the negative and inaccurate information from your credit reports.

If you’re not sure how to handle a debt validation and dispute letter to fix your credit scores, consider utilizing the services of a professional credit repair company that has an experience in repairing personal as well as business credit scores.

KeyPoint is a credit repair company in Fremont that offers its services in credit building and repair for consumers and businesses. Having been in the industry for nearly a decade, KeyPoint centers its focus on providing their clients quick and effective solutions for improving their credit scores.

For more details and information, get in touch with them at 1-800-745-7400 or sign up for a free consultation here.