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Free Debt Validation Letter

Free Example Debt Validation Letter

Free, sample debt validation letter: when a debt collector reaches out to you and claims you owe them money, it’s common to respond to them with, “What? Who are you? I never heard of you! No way do I owe you any money! Prove it!

Debt Validation

Once you calm down, the best approach is for you to request more information about the debt collector and the money they claim you owe them. [I’ve written several Posts on this subject.] You need a “Debt Validation Letter” to send to this debt collector.

Basically, You’re saying: “Tell me more about this debt.”

Use the sample  letter here to ask for more information about this debt.

How to use this free Debt Validation sample letter:

  1. Read the background below
  1. Fill in your information on the sample Debt Validation Letter  and edit it as needed to fit your situation. Delete any parts that don’t apply to you.
  1. Print and send the Debt Validation Letter letter as soon as you can. Keep a copy for your records.  You should consider sending the letter by certified mail or another method by which you can establish when the letter is received by the intended recipient.

Background: Send this Debt Validation Letter as soon as you can — if at all possible, within 30 days of when a debt collector contacts you the first time about a debt. This is important because, under the Federal Fair Debt Collection Practices Act, your legal rights to obtain verification information from a debt collector are greater during the 30-day period.

When a debt collector is asking you to pay money, you’re entitled to ask for details.  The sample Debt Validation Letter below will help you to get details on the following:

  • Why a debt collector thinks you owe this debt.
  • The amount of the debt and how old it is.
  • Details about the debt collector’s authority to collect this money.

A debt collector may not have a legal obligation to provide some or all of the information you seek, even if you request it within the 30-day period.  If the collector doesn’t give you what you request, that doesn’t necessarily mean the debt collector has broken any laws or has given up a legal right to collect from you.

After you send your Debt Validation Letter:

  • If the debt collector makes vague statements about what will happen if you do not pay, read their response to your letter carefully. If they tell you that they intend to sue you, you should take that seriously. Federal law prohibits a debt collector from threatening to take any action they can’t take or that they don’t intend to take.

If you have specific questions, you may want to contact a lawyer.  If you need a lawyer, you can:

  • Review this list of state legal services.
  • Find lawyer referrals in your county and state by visiting the websites for your local or county bar association, or legal aid.

State laws, have statutes of limitations, or limited time periods when creditors or debt collectors can file a lawsuit to collect a debt.

  • These periods of time can be two years or longer.
  • The period of time varies by state and by the type of debt.
  • In some states, even a partial payment on the debt will restart the time period.

If you suspect that the debt may be beyond the statute of limitations, you may want to consult a lawyer before making any payment on a debt.

Debt Validation Letter
Payday Loan Help

[If you’re in PAYDAY LOAN HELL, get my book: “18 Ways to Kiss Your Payday Loan Lender Goodbye” available here on Amazon.]

Not all states require debt collectors to be licensed.  Where a license is required, knowing whether or not a debt collector is licensed may be useful.  If the debt collector isn’t conducting itself properly, you can contact the state licensing agency.

Sample Debt Validation Letter:

[Your name]

[Your return address] [Date]

[Debt collector name] [Debt collector Address]

Re: [Account number for the debt, if you have it]

Dear [Debt collector name]:

I am responding to your contact about a debt you are trying to collect. You contacted me by [phone/mail], on [date] and identified the debt as [any information they gave you about the debt]. Please supply the information below so that I can be fully informed:

Why you think I owe the debt and to whom I owe it, including:

  • The name and address of the creditor to whom the debt is currently owed, the account number used by that creditor, and the amount owed.
  • If this debt started with a different creditor, provide the name and address of the original creditor, the account number used by that creditor, and the amount owed to that creditor at the time it was transferred. When you identify the original creditor, please provide any other name by which I might know them, if that is different from the official name. In addition, tell me when the current creditor obtained the debt and who the current creditor obtained it from.
  • Provide verification and documentation that there is a valid basis for claiming that I am required to pay the debt to the current creditor. For example, can you provide a copy of the written agreement that created my original requirement to pay?
  • If you are asking that I pay a debt that somebody else is or was required to pay, identify that person. Provide verification and documentation about why this is a debt that I am required to pay.

The amount and age of the debt, including:

  • A copy of the last billing statement sent to me by the original creditor.
  • State the amount of the debt when you obtained it, and when that was.
  • If there have been any additional interest, fees or charges added since the last billing statement from the original creditor, provide an itemization showing the dates and amount of each added amount. In addition, explain how the added interest, fees or other charges are expressly authorized by the agreement creating the debt or are permitted by law.
  • If there have been any payments or other reductions since the last billing statement from the original creditor, provide an itemization showing the dates and amount of each of them.
  • If there have been any other changes or adjustments since the last billing statement from the original creditor, please provide full verification and documentation of the amount you are trying to collect. Explain how that amount was calculated. In addition, explain how the other changes or adjustments are expressly authorized by the agreement creating the debt or permitted by law.
  • Tell me when the creditor claims this debt became due and when it became delinquent.
  • Identify the date of the last payment made on this account.
  • Have you made a determination that this debt is within the statute of limitations applicable to it? Tell me when you think the statute of limitations expires for this debt, and how you determined that. 

Details about your authority to collect this debt.

  • I would like more information about your firm before I discuss the debt with you. Does your firm have a debt collection license from my state? If not, say why not. If so, provide the date of the license, the name on the license, the license number, and the name, address and telephone number of the state agency issuing the license.
  • If you are contacting me from a place outside my state, does your firm have a debt collection license from that place? If so, provide the date of the license, the name on the license, the license number, and the name, address and telephone number of the state agency issuing the license.

I have asked for this information because I have some questions.  I need to hear from you to make an informed decision about your claim that I owe this money.  I am open to communicating with you for this purpose.  In order to make sure that I am not put at any disadvantage, in the meantime please treat this debt as being in dispute and under discussion between us.

In addition to providing the information requested above, please let me know whether you are prepared to accept less than the balance you are claiming is owed. If so, please tell me in writing your offer with the amount you will accept to fully resolve the account.

Thank you for your cooperation.

Your Name

[This Debt Validation Letter complements of the CFPB]

Payday Loans: Court Collects & Refunds Customers

FTC Action Shuts Down Huge Payday Loan Ripoff

Timothy A. Coppinger and Frampton T. Rowland are the operators of a payday loan company that the FTC accuses “of bilking millions of dollars from consumers by trapping them into loans they never authorized.”

Do YOU owe any of these companies for a payday loan(s)? If so, your debt has been extinguished by the Federal Trade Commission!

The defendants are Coppinger and his companies, CWB Services LLC, Orion Services LLC, Sandpoint Capital LLC, Sandpoint LLC, Basseterre Capital LLC, Basseterre Capital LLC, Namakan Capital LLC, and Namakan Capital LLC, and Rowland and his companies, Anasazi ervices LLC, Anasazi Group LLC, Vandelier Group LLC, St. Armands Group LLC,; Longboat Group LLC, doing business as Cutter Group, and Oread Group LLC, d/b/a Mass Street Group.

The settlements stem from charges the FTC filed last year alleging that Timothy A. Coppinger, Frampton T. Rowland III, and their companies targeted online payday loan applicants and, using information from lead generators and data brokers, deposited money into those applicants’ bank accounts without their permission. The defendants then withdrew reoccurring “finance” charges without any of the payments going to pay down the principal owed. The court subsequently halted the operation and froze the defendants’ assets pending litigation.

According to the FTC’s complaint, the defendants told consumers they had agreed to, and were obligated to pay for, the unauthorized “loans.” To support their claims, the defendants provided consumers with fake loan applications or other loan documents purportedly showing that consumers had authorized the loans. If consumers closed their bank accounts to stop the unauthorized debits, the defendants often sold the “loans” to debt buyers who then harassed consumers for payment.

The defendants also allegedly misrepresented the loans’ costs, even to consumers who wanted the loans. The loan documents misstated the loan’s finance charge, annual percentage rate, payment schedule, and total number of payments, while burying the loans’ true costs in fine print. The defendants allegedly violated the FTC Act, the Truth in Lending Act, and the Electronic Funds Transfer Act.

Under the proposed settlement orders, the defendants are banned from any aspect of the consumer lending business, including collecting payments, communicating about loans, and selling debt. They are also permanently prohibited from making material misrepresentations about any good or service, and from debiting or billing consumers or making electronic fund transfers without their consent.

The orders extinguish any consumer debt the defendants are owed, and bar them from reporting such debts to any credit reporting agency, and from selling or otherwise benefiting from customers’ personal information.

The settlement orders impose consumer redress judgments of approximately $32 million and $22 million against Coppinger and his companies and Rowland and his companies, respectively. The judgments against Coppinger and Rowland will be suspended upon surrender of certain assets. In each case, the full judgment will become due immediately if the defendants are found to have misrepresented their financial condition.


Payday Loan Help: Integrity Advance Busted by CFPB

CFPB Busts Online Payday Loan Lender Integrity for Cheating it’s Customers

If you owe a Deleware licensed payday lender called “Integrity,” it’s likely you don’t need to payback your payday loan! The CFPB accuses Integrity Advance of falsely stating the “Cost of Loans” and seeks relief for borrowers.

I’ve written multiple times about a multitude of payday loan and car title lenders having their hands slapped – very, very hard – by the CFPB.

If you’re lucky enough to owe any of these lenders money, you’re in luck. You will not have to pay them back.

18 Ways to Kiss Your Payday Loan Lender Goodbye
Payday Loan Help

For ALL my tricks listing how to get payday loan help and get out of all your payday loans, invest in my book, “How to Kiss Your Payday Loan Lender Goodbye.” It’s available on Amazon for only $2.95.

“The Consumer Financial Protection Bureau (CFPB) took action today against an online lender, Integrity Advance, LLC, and its CEO, James R. Carnes, for deceiving consumers about the cost of short-term loans. The Bureau alleges that the company’s contracts did not disclose the costs consumers would pay under the default terms of the contracts. The Bureau also alleges that the company unfairly used remotely created checks to debit consumers’ bank accounts even after the consumers revoked authorization for automatic withdrawals. The CFPB filed an administrative lawsuit seeking redress for harmed consumers, as well as a civil money penalty and injunctive relief.”

“Integrity Advance was a Delaware-based online lender which originated and serviced short-term loans to consumers around the country. From May 2008 through December 2012, Integrity Advance offered loans ranging from $100 to $1,000, and consumers typically applied for the loans by entering their personal information into a lead generator website.”

“Under the default terms of Integrity Advance’s contracts, the loans would roll over four times—causing additional charges to accrue with each rollover—before the company applied any of the payments to the principal amounts. However, the costs on the disclosures were based on the assumption that the loans would not roll over and would instead be repaid in full by the first payment. Integrity Advance never informed consumers of the total costs of their loans if those loans were rolled over, even though the contracts were set up to roll over automatically. Under the default terms of the contracts, consumers would end up paying finance charges more than double the amount originally borrowed: $765 in finance charges for a typical $300 loan.”

“The CFPB alleges that Integrity Advance violated the Truth in Lending Act and the Electronic Fund Transfer Act, and that Integrity Advance and Carnes violated the Dodd-Frank Wall Street Reform and Consumer Protection Act’s prohibition against unfair and deceptive acts and practices. The unlawful practices alleged by the CFPB include:

  • Hiding the total cost of loans: Consumers were given contracts with disclosures based on repaying the loan in a single payment, even though the default terms of the contract called for multiple rollovers and additional finance charges. For example, under Integrity Advance’s default payment schedule, a consumer borrowing $300 would ultimately pay $765 in finance charges—$675 more than the $90 finance charge disclosed in Integrity Advance’s contract.
  • Requiring repayment by pre-authorized electronic funds transfers:Integrity Advance violated federal law by requiring consumers to agree to repay their loans via pre-authorized Automated Clearing House (ACH) payments. The Electronic Fund Transfer Act says repayment of loans cannot be conditioned on consumers’ pre-authorization of recurring electronic fund transfers.
  • Continuing to debit borrowers’ accounts after consumers canceled the authorization: Integrity Advance’s contracts with consumers included a provision allowing the company to use remotely created checks if a consumer successfully canceled his or her authorization for ACH withdrawals. The provision was hidden in the loan agreement, and the company used it to take consumers’ funds when consumers believed they did not owe money to Integrity Advance.”

“A Notice of Charges initiates proceedings in an administrative forum, and is similar to a complaint filed in federal court. This case will be tried by an Administrative Law Judge from the Bureau’s Office of Administrative Adjudication, an independent adjudicatory office within the Bureau. The Administrative Law Judge will hold hearings and make a recommended decision regarding the charges, which may be appealed to the Director of the CFPB for a final decision. The Notice of Charges is not a finding or ruling that the respondents have actually violated the law.”

“The Bureau’s Rules of Practice for Adjudication Proceedings provide that the CFPB may publish the actual Notice of Charges ten days after the company is served. If allowed by the hearing officer, the charges will be available on the CFPB website after that date.”

Payday Loan Refunds

Payday Loan Refunds

For my UK friends, here’s some very good news regarding a refund for Dollar Financial payday loan borrowers.

Dollar Financial has been forced to refund more than £15.4m to 147,000 customers.

18 Ways to Kiss Your Payday Loan Lender Goodbye
Payday Loan Help

After an investigation into Dollar Financial the FED’s ruled that between April 2014 and April 2015 – after implementation of harsh new lending rules – Dollar customers “may have suffered detriment as a result of the firm’s affordability checks, debt collection practices and systems errors.”

Dollar Financial  owns The Money Shop and internet loan firms Payday UK, Payday Express and Ladder Loans.

As a result of this government fine, Dollar Financial has changed its lending criteria to meet the Financial Conduct Authority’s  rules for high cost short term lenders.

Are you buried under payday loan debt? Struggling to payback your payday loan lenders? No more need to fret. Get my new book, “18 Ways to Kiss Your Payday Loan Lender Goodbye,” and kiss off your payday loan lenders legally!

FTC Returns Cash to Payday Loan Borrowers

FTC Returns Money to  Online Payday Loan Applicants.

Scammers Debited Bank Accounts Without Consent.

How to contact the Federal Trade Commission for your payday loan scammed refund:

Payday loan help for small dollar loan borrowers.

The Federal Trade Commission is mailing 64,607 checks totaling $1.5 million to consumers who lost money to an online operation that illegally debited their bank accounts when they sought payday loans.

The action follows a federal court ruling in favor of the FTC in its case against Direct Benefits Group LLC, Voice Net Global LLC, Solid Core Solutions Inc., WKMS Inc., Kyle Wood, and Mark Berry, whose operations have been halted by the court. According to the FTC’s complaint, the defendants’ websites failed to disclose that they would use consumer’s bank account information to charge them for enrollment in unwanted programs and services.

18 Ways to Kiss Your Payday Loan Lender Goodbye
Payday Loan Help

Consumers who receive checks from the FTC’s refund administrator, Gilardi & Co., LLC, should deposit or cash them within 60 days of the mailing date. The FTC never requires consumers to pay money or to provide information before refund checks can be cashed.

Consumers who receive checks and have questions can contact Gilardi & Co., LLC at 1-877-255-2804. More information about the FTC’s refund program is available on the FTC’s website.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

Harold E. Kirtz
Southeast Region

Related Case
Direct Benefits Group, LLC, et al.
For Consumers
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