OK; thank you for that.
So under the FDCPA (a federal act governing collections), a consumer may request "debt validation" -basically requesting the collector to prove the existence of the underlying debt. If the collector is unable to prove it, they may not report it to the credit bureaus (doing so can result in the imposition of fines under the Act).
However, there is no solid case law on how much material or documentation needs to be provided. It varies by judge. So some judges will allow a collector to simply show a statement generated by the company, showing for example, the day the debt was purchased. This may help allow the collector in reporting it to the credit bureaus; however, that does not mean the collector will win in court, as the burden is on the plaintiff to prove the actual debt.
If one wishes to request debt validation they can do so for free, without a middleman.
This explains debt validation.
Attorney General's have taken action against some debt invalidation companies, claiming they violate the Consumer Protection Act which precludes unfair and deceptive trade practices act; so the particular company, and the proffered contract, would need to be reviewed to ensure it is in one's best interests.
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