Debt Validation Letter VS Debt Verification Letter: What’s the Difference?

Throughout the world, there are people who are dealing with debt, and who are being harassed by their credit collections agency. Thankfully, there is a credit reporting system that anyone can use to help them with their case. Unfortunately, people often get confused with the terms debt verification and debt validation.  If you are having trouble getting out of debt check out my posts A 6 step plan to dominate your debt or 4 tips to improve your credit.


They think that this is just a simple confusion that will not affect the status of their current debt. It is the responsibility of each debtor to get to know the difference between such terms so they will have no trouble complying with them.


Why People Get Confused with Debt Verification and Debt Validation


One reason why people interchange the two terms is because they are being used interchangeably. In a nutshell, the two terms refer to a process wherein a consumer makes a request to a debt collection company to prove to him that he actually owes money.


Even though the two terms can be used in lieu of one another, there is an important difference between a legitimate debt validation letter and a debt verification letter.


Debt Verification


According to the Fair Debt Collection Practices Act, each consumer is entitled to validate his or her collections debts. However, it does not include a clear definition as to what constitutes a legitimate debt validation.


In lieu of this ruling, a consumer has the ability to send a letter to his creditor or collectors, requesting the confirmation of information reflecting his penalized account. This letter is referred to as debt verification letter, wherein details included for verification usually include a debtor’s name and address.


Unfortunately, a debt verification letter may not be sufficient evidence to bring to court. This is because anyone who has access to the internet or a phonebook can easily search and locate an individual’s name and address.


As a result, this letter does not have the ability to verify the consumer’s existing debt to his creditor.


Moreover, the letter is not capable of helping put a stop to the harassment from a collections agency. Having a debt verification letter alone is not sufficient to stop debt collection. The collections agency can still abide by FDCPA laws and continue collection activity and taking advantage of individuals who attempt to use the credit reporting system without understanding it thoroughly.


Debt Validation


Going back to the earlier issue with the FDCPA and its lack of a clear definition of what compromises a debt validation letter, collections agencies can theoretically provide any account documentation to a consumer. Since this is considered as adhering to the law, there are several collections agencies that use this on consumers who do not fully understand the difference between such letters.


But what the court truly needs is the original contract signed by a consumer addressing the collections agency to provide him a legitimate debt validation. Because it is not clearly stated on the FDCPA, there are several collections agencies that only provide a debt verification letter.


The main difference between the two, however, is the fact that a debt validation letter can demand relevant facts and details that have commonly exposed fraudulent plans with most collectors.  Even though the two letters are a part of a debt dispute letter, consumers can make use of the debt validation letter to contest any abusive actions of the creditor or a collections agency. The debt validation letter can attest to a legitimate claim on a consumer’s account.


What these Letters can do in Court


In the event of a court procedure, a legitimate debt verification letter is the only acceptable documentation which proves that a consumer owes the debt.


Because a debt verification letter does not prove anything, it is useless to bring one. Without the presence of a legitimate debt validation letter, a consumer has a chance to win his case. Moreover, the consumer will no longer receive harassing phone calls from the collections agency.




  • Important distinctions for people struggling with credit and debt collectors. This can be such a messy, messy process….

  • When you are under water and in debt these letters are the scariest things you can receive.

  • YFS /

    Tell me about it. So many people do not know the basics!

  • Debt Validation Letter VS Debt Verification Letter: What’s the Difference?…

    Throughout the world, there are people who are dealing with debt, and who are being harassed by their credit collections agency. Thankfully, there is a credit reporting system that anyone can use to help them with their case. Unfortunately, people ofte…

  • Very confusing indeed. Thanks for the clarification, its like the credit companies want you to be confused and scared.. Its how they seem to make their money. Knowledge is their enemy.

  • YFS /

    Receiving a letter from a creditor shouldn't be scary thing. You should use it as an opportunity to figure out what's going on. Use it as a starting point to get your act together!

  • YFS /

    Knowledge definitely is power! It's amazing how small little nuances in the law or wording of a letter can yield different results.

  • […] do some searches, most times it just muddies things up even more!  But if you were to check out Your Finances Simplified, you’d find out exactly the […]

  • I received 2 different letters from 2 different law companies which do I need to send verification validation or dispute which should I send first?

Leave a Reply

Your email address will not be published.


Teach me how to improve my finances, 

so that I can buy a home

and stop wasting my money on rent