Debt Validation Letter

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June 3, 2013 by cryan.com

The Massachusetts debt collection regulations require creditors to provide a validation notice. Under the amended regulations, creditors are now required to provide a debt validation notice, similar to that required under the Fair Debt Collection Practices Act. The amended regulations require creditors, within five days of the initial communication in connection with the collection of a debt (defined as more than 30 days past due and owing), to provide the debtor or his or her attorney:

1. the amount of the debt;
2. the name of the creditor to whom the debt is owed;
3. a statement that unless the debtor, within 30 days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the creditor; and
4. a statement that if the debtor notifies the creditor in writing within the 30-day period, that the debt, or any portion thereof, is disputed, the creditor will cease collection of the debt, or any disputed portion thereof, until the creditor verifies the debt and provides the debtor or his attorney, by first class mail, the following:
1. all documents, including electronic records or images, which bear the signature of the debtor and which concern the debt being collected;
2. a ledger, account card, account statement copy or similar record, which reflects the date and amount of payments, credits, balances and charges;
3. the name and address of the original creditor, if different from the collecting creditor; and
4. ;a copy of any judgment against the debtor. Mass. Regs. Code tit. 940 ? 7.08. The creditor must cease collection of the debt until it has made reasonable efforts to obtain and provide this information to the debtor.