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When it comes to the subject of fixing bad credit and dealing with collection agencies, debtors have a very critical right outlined in the Fair Debt Collection Practices Act. This right is centered on the ability to have a collection account validated.

Outlined in the FDCPA, there is a process known as validation and it is significantly different from the common process of verification. Verification simply centers on the credit bureau asking a creditor to verify information present on a persons account. This is a very cursory process that can be dealt with in a rather short amount of time. The creditor will simply review records and then provide it to the agency. The agency will then decide whether or not the creditor has provided accurate information.

Conversely, when a collection agency is asked about validating a debt, the process is a much more involved one. In such a situation, it is up to the collector to prove that a debt is your responsibility. This is what can make the entire process very involved. Additionally, the collector will be required to stop all collections activity until they are able to provide the necessary evidence. In the event the collection agency is unable to validate the debt, it must stop all collections and reporting action.

It is important, however to note that the rights of validation apply only to collection agencies and not the original creditor. The reason for this is there is an assumption that the record maintained by collection agencies will be less accurate than those maintained by the original creditor. Collection agencies are notorious for chasing the wrong party or misstating the amounts that might be owned. The enactment of the validation process is a way of protecting the consumer from such problems.

In order to validate a debt, the collector must acquire documentation from the original creditor that shows the individual in question truly does owe the stated amount of money. From this, validation becomes an extremely helpful tool in terms of its ability to eradicate problem spots on your collection report. Often, collectors lack the necessary documentation. This is because such documentation becomes lost or misfiled over the years which are generally the case when several collection agencies are employed. And let it be known a mere computer printout will not be enough to validate claims made by the creditor. This is because itemization alone is not sufficient proof for the purposes of validating a debt.

There is another very unique aspect to the validation process that many may be completely unaware of. Specifically, it can help you eliminate the collection of accounts that do belong to you. Some may wonder how this is possible. After all, if the debt is truly yours, how could you legally have is removed. The way this can be achieved is through initiating the validation process.

You will find that sometimes – not always, but sometimes – you can get accurate information removed from your file, especially if it has to do with an old collection account. Now, the bureaus and Fair Isaac will tell you that this isn’t “playing fair” – that the integrity of the credit system depends on credit reports reflecting the most complete picture possible, including all available negative and positive information.