Credit Infocenter
Call Lexington Law 800.461.0524 for a FREE Credit Consultation & Credit Score
SearchCall UsMenu

Debt Buyers Validate Little More Than Half Consumer-Challenged Debt [FTC Report]

January 31st, 2013 · No Comments · Credit Repair

Meredith Simonds

by Meredith Simonds

Today comes news further supporting our best piece of advice for fighting old debt — the debt validation process. As revealed in an investigation by the Federal Trade Commission (FTC), collection agencies that buy old debt from original creditors are only able to validate consumer-challenged debt a little more than half the time (51.3 percent). So if you haven’t already, may this serve as any further inspiration you need to get the ball rolling on the debt validation process.

As reported by The Consumerist, some of the key findings of the study are as follows:

1) When collection agencies buy debt from original creditors, they are rarely provided with:

  • a breakdown of the principle balance, interest or fees associated with the account
  • supporting documents proving the debt owed

2) When original creditors sell old debt to collection agencies, they:

  • provide no guarantee to the debt-buyer that the information attached to the debt is accurate
  • may only allow a period of 6 months to 3 years for the debt-buyer to request supporting documents
  • provide no guarantee that they can follow through with the request for documents supporting proof of the debt

This is all very good news indeed for consumers who are in need of credit repair. If a collection agency is harassing you for payment on old debt, the debt validation process is your legal right to request proof of said debt. Without proper supporting documents provided by the original creditor, this is impossible for the debt-buyer to do. And if unproven, then you are under no legal obligation to pay the debt and the negative listing associated with the debt must be removed from your credit reports.

Tags: ········

No Comments so far ↓

There are no comments yet...Kick things off by filling out the form below.

Leave a Comment

Protected with IP Blacklist CloudIP Blacklist Cloud

Call 800.461.0524 to speak to a Credit Expert at Lexington Law
Have Questions About Credit Repair? Get Answers with a FREE Consultation