Download your free Debt Validation Letter Template now!
Recently received a notice of collection? Fill out and this letter template to the creditor reporting the collection. If they can’t validate the debt within the first 30 days, they are required to stop reporting it!
What does this Debt Validation Letter Template do?
This letter should be sent to creditors (usually collection agencies) who recently started reporting a collection account on your credit report. If it has been less than 30 days since you first received a notice of collection, the creditor is required to validate that the debt is yours. If the collection agency cannot validate the debt within 30 days of receiving your request, they cannot report the collection. Which should dramatically improve your credit score. Keep in mind, they are only required to remove the account from your report if you send this within 30 days of receiving the first collection notice.
How do I use my free debt validation letter template?
First, download the template above. Then, copy and paste it into a word editor. Fill it out with your information. Finally, send a copy of the filled out debt validation letter template to the collection agency via certified mail. If the item is not validated within 30 days, it should be removed. If it is not removed, send a dispute to the credit bureaus saying the debt was not validated along with the dates of receipt you have by sending it via certified mail.
What is a collection?
Definition: If a bill or debt is unpaid for an extended amount of time, the original creditor may sell it or have the debt serviced by a collection agency. Once this happens, the new account will be displayed on your credit report as a "Collection account". Collection accounts have a major impact on your payment history (the most important factor of your credit score) and can drop your score by as much as 100 points!
What is Charge-off?
Definition: If a bill or debt is unpaid for an extended amount of time, the creditor considers the bill or debt as a "write-off" or "charge-off". This simply means the creditor now considers that debt or bill a "loss". Once it is charged off, the creditor may or may not sell it to a collection agency. Meaning a report could contain a charge-off AND a collection for the same original debt. Similar to collection accounts, charged-off accounts have a major impact on your payment history (the most important factor of your credit score). Just one charge-off can drop your score by as much as 100 points.
How long do they stay on my report?
Both collection and charge-off accounts can remain on your credit report for up to 7.5 years.
Is it possible to remove them?
It is possible. 1/3 credit reports contain a mistake. Meaning a collection or charge-off could be on your report mistakenly. If so, a simple dispute should remove it which would cause a big increase. On the other hand, accurate charge-offs or collections can potentially be removed via a pay to delete, a tactic where you repay the debt in return for having it removed. IMPORTANT: NOT ALL CREDITORS ACCEPT PAY TO DELETE AGREEMENTS Make sure you communicate with your creditor and receive a signed letter of agreement where they agree to remove the account. Otherwise, they have no obligation to remove the hurtful charge-off/collection upon payment.
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