Debt Validation: The Consumer Law Few People Know About.
Updated: Apr 23
Debt Validation Explained
Debt Validation is a little known federal statute that all Americans can take advantage of when challenging the claim third-party debt collectors have towards an alleged debt. This statute was created in 1977 and enacted under the Fair Debt Collections Practices Act (F.D.C.P.A.) in 1978. At the time, unscrupulous criminals and debt collectors would falsely claim to own the debt of millions of American citizens. The practice of calling, harassing, threatening and making false statements such as the right to take someone's house or imprison them motivated congress to take action.
The intent of Congress and this new law was to directly attack the unethical practices of third-party debt collectors and all other parties that tried to collect on debts that were no longer valid or simply nonexistent. However, at the same time not affect the actual lenders such as banks. These parties historically had a good relationship with the American public and were not to be impacted by the new law.
A Law With "Teeth"
This law created by Congress had "teeth" and when executed properly is a powerful tool in relieving American citizens from erroneous debt collection efforts. However, like many of our constitutional rights as Americans, we are unaware of their usefulness or even of their existence. Debt Validation the process of challenging ownership of the alleged debt is rarely utilized even though it is mandated to be sent on the first notice you receive from a debt collector.
Predatory Interest Rates
An example of the abuse starts when credit card companies charge predatory interest rates that create untenable amounts of credit card debt. Americans are unable to save money due to the onerous burden of their high monthly payments. So even as you struggle to make a payment on time each month, when you check your credit report you see that your credit score is still rated fair to poor. This one factor alone makes it nearly impossible to get a reasonably priced debt consolidation loan.
Most people have no idea what their debt relief options are as their financial situation becomes more dier month after month. They usually do a quick google search of the best debt relief programs in their area and find debt settlement companies such as national debt relief or freedom debt relief. These debt relief companies specialize in settlement offers on various unsecured debts. They usually include at the minimum credit cards debts, private student loans, auto loans that have become "repose" and personal loans. Some of the companies have accredited credit counselors (AFCC) to educate you in making better financial decisions.
Debt Being "Charged-Off"
If you have debts that have been or are going to be "charged-off" from the original lender, you have a right to challenge those debts once they are claimed ownership by a third party. This law is here to protect you and can be a powerful tool in resolving your debt issues. The key is to have professional advocates who understand the law and the nuances involved in helping you become debt-free. Please look for my next post where we go into more detail on this consumer law and how it works in practice. Until then relax, take a breath, there is a legitimate program to help you with your debt situation. Best Regards,
Revolution Debt Relief LLC
752 South Main Street
Los Angeles, California