Debt Validation


Debt Validation: How does it work?  

There are two phases in Debt Validation:

Phase I

Phase 1 begins at the time of enrollment. In the first phase, your accounts will become delinquent, if they already aren’t. During this time, the original creditor will attempt to call you and send you ‘Past Due’ statements. Our goal is to have the original creditor transfer the debt to a third-party such as a debt buyer, collection agency or collection attorney as soon as possible. This usually takes 4-6 months, however on some accounts such as private student loans, it can take up to 24 months. 180 days is the maximum amount of time that the original creditor has to charge-off (write the debt off as an underperforming asset). By law, Debt Giant can’t advise you to stop communication with your creditors, but keep in mind, the more you communicate with your creditors; the longer it will take for them to charge-off your account and transfer it to the third-party collectors.

Phase II

Phase 2 begins when the debt is charged-off and transferred to a third-party collector. Once this happens, the collection agencies will attempt to contact you by phone and/or in writing. They can be harassing at times. The good news is that according to the Fair Debt Collection Practices Act (FDCPA), the statutory laws that our program is based on; you can request them (third-party collectors) to stop contacting you by phone. Make sure to confirm that they have your correct mailing address so that they can communicate with you through mail.  

Once you receive their collection letters, you will simply forward that to us. (Please make sure to include your name in the emails that you send and forward the letters you receive in a timely manner as we have 30 days to prepare and send a response.)  Upon receiving the collection letters from you, our processing department will prepare a response and send out a Cease and Desist Notice, which will force them to stop contacting you. The next step is that we send them a Notice of Demand for Validation. At that point, the burden of proof is on the collection agencies to provide all the documentation that we request, which they must provide according to the Fair Debt Collection Practices Act (FDCPA)Fair Credit Reporting Act (FCRA) and the Truth in Lending Act (TILA) among others, before they can resume any collection activity or report your accounts to any credit bureaus.
If they fail to provide the COMPLETE list of documents, then they can’t collect, thereby rendering your debt uncollectible. This process can last the entire length of the statute of limitations in your state, which on average is four to five years. Please note that they can sell your debt multiple times during and even after your program ends. For this reason, not only will we work to resolve these debts while you are contracted with us, but also continue to service your accounts should we need to, until the statute of limitations is reached in your state. Once the Statute of Limitations is reached, no creditor can bring a legal claim against you and your debts will be rendered unenforceable. 

Debt Validation: How does it work? Continued…

In the past years the number of complaints to the FTC regarding collection agencies has skyrocketed. For this reason, many collection agencies have been subject to heavy civil penalties for unlawful collection practices by the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB). It is the goal of our debt validation program to ensure that these agencies are legally allowed to collect from you. If they can’t provide proof through documentation, then they can’t collect.  IMPORTANT: Please note that this is not a debt settlement, debt management, credit card counseling, debt consolidation loan or a credit repair program. Additionally, your credit rating can be negatively affected as a result of non-payment. Furthermore, there is a possibility that one or more of your accounts enrolled in our program could face litigation. Should this happen, we will remove said account from our validation program, refund you 100% of the fees charged for that account. At this point, we will contact you and give you instructions of how to resolve that specific account via the next least costly method, which typically is a settlement.  Alternatively, you may hire a debt settlement service provider to negotiate a settlement on your behalf.

Contact Us

Please get in touch with our expert support team will answer all your questions.


4100 Flamingo Road, Suite #2700, Las Vegas, NV 89103

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