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Insufficient Debt Verification

Insufficient Debt Verification
Mark Cappel
UpdatedMar 4, 2024
Key Takeaways:
  • Validate your debt within 30 days of contact from a collection agent.
  • Federal law and the US courts set the standards for verification.
  • Consult with a lawyer, the state attorney general, and FTC if a collector violates FDCPA rules.

What can I do if a collection agent does not verify/validate a debt?

I followed the steps you talk about to dispute a debt and ask for debt validation. However I only received a print out of transactions from the collector. Then I followed with the letter failed to validate debt and it has been 30 or more days have past, and the negative reporting is still showing on my credit file. What do I do next and how do I go about it?

When a collection agent contacts a consumer to collect a debt, the collection agent must give the consumer written notification within five days that he or she has the right to verify the debt. The consumer then has 30 days to send the collection agent a written request for verification.

Consumers have the right to dispute the existence of or validity of a debt amount. Consumers who wish to dispute all or any portion of the alleged debt must notify the debt collector that all or part of a claimed debt is disputed. has written extensively on how to validate or verify debt. If you are just getting started in this process, follow the link just mentioned for directions on how to ask for debt validation.

Once a collection agent receives a notice of dispute, it must:

  • Suspend collection activities regarding the claimed debt until the collector verifies the debt or gets a copy of the judgment against the debtor
  • Provide the verification requested by the consumer

The FDCPA and FTC use the word verify when describing this process. and other Web sites call it validate or validation. These terms mean the same thing.

What if a Collection Agent Does Not Validate a Debt?

If you send the collection agent your validation within 30 days of receiving the notice, and the collection agent has not sent you any validation, or its validation is insufficient, send the collection agent a notice of insufficient validation. Here is a template of a notice of insufficient validation to help you get started:


If the collection agent still does not comply with the FDCPA and follow the standard for validation in your state, and continues to try to collect the debt, then you have two options.

Option No. 1: Cease Communications Notice

Consumers have the right to ask the collection agent to stop communicating with them. When a consumer gives a collection agent written notice he or she refuses to pay the debt or wants the collection agent to stop further collection efforts, the collection agent must cease any communications. There are three exceptions to this rule. The collection agent or original creditor may:

Is it worth your time to validate a debt? Yes! Collection agents cannot validate 41% of the accounts less than 3 years old. Collection agents cannot validate 64% of the accounts 6 years of age or older. Overall, the debt industry can validate about half of all accounts (The Structure and Practices of the Debt Buying Industry (PDF)). The least likely accounts to be validat-ed are med-ical, tele-com-munica-tions, and utility debts.

  • Advise the consumer the agent’s further collection efforts are terminated
  • Send a letter threatening to file a lawsuit against the consumer
  • Notify the consumer the debt collector or original creditor filed a lawsuit against the consumer

Some collection agents view a cease communications notice as a "put up or shut up" challenge and respond by filing a lawsuit against the consumer. Therefore, the safest time to present a collection agent or original creditor with a cease communications notice is after the statute of limitations has run out on the debt.

Consumers with old delinquent debt often ask how their state statutes of limitation may impact their rights. See the resources Statute of Limitations Laws by State and How to Tell Which Statute of Limitations Applies to Your Situation to learn more about this issue.

Note that in all but two states, a collection agent or original creditor may still file a lawsuit after the statute of limitations has run.


Option No. 2: File a Lawsuit

The FDCPA permits consumers to sue debt collectors who engage in prohibited collection practices. The FDCPA and some similar state laws provide for injunctive relief in the form of court orders forbidding a debt collector to continue their improper practices. In addition, the FDCPA allows the collection of actual and statutory damages for individual consumers, as well as costs and attorney’s fees. The FDCPA provides for actual damages plus statutory damages of up to $1,000.

Consumers may seek remedies under the FDCPA in federal court. The statute of limitations — the time during which an action may be brought in court — is 1 year. States with FDCPA-like laws have different statutes of limitations.

Unsure how to handle your debt? Let the Debt Coach tool give you a customized report on your debt resolution options. It’s free!

Consult with a lawyer who has consumer law experience to learn if you have a cause of action against a creditor for not responding to your verification request. Also, contact your state’s attorney general and the FTC complaint page. You may not receive any assistance from your attorney general or the FTC immediately. However, if enough people notify an attorney general or the FTC about a collection agent’s illegal activities, either one or both may launch an investigation that results in fines or other punishment.

I hope this information helps you Find. Learn & Save.



Dealing with debt

Debt is used to buy a home, pay for bills, buy a car, or pay for a college education. According to the NY Federal Reserve total household debt as of Q4 2023 was $17.503 trillion. Auto loan debt was $1.607 trillion and credit card was $1.129 trillion.

A significant percentage of people in the US are struggling with monthly payments and about 26% of households in the United States have debt in collections. According to data gathered by from a sample of credit reports, the median debt in collections is $1,739. Credit card debt is prevalent and 3% have delinquent or derogatory card debt. The median debt in collections is $422.

Each state has its rate of delinquency and share of debts in collections. For example, in Hawaii credit card delinquency rate was 2%, and the median credit card debt was $472.

Avoiding collections isn’t always possible. A sudden loss of employment, death in the family, or sickness can lead to financial hardship. Fortunately, there are many ways to deal with debt including an aggressive payment plan, debt consolidation loan, or a negotiated settlement.