Daniel Rosen breaks down three credit repair terms often mixed up: validation (a debt collector requirement under FDCPA section 809), verification (which forces bureaus and furnishers to investigate), and disputing (how you challenge items on your report under the Fair Credit Reporting Act). Nearly 70% of successful participants in the Credit Hero Challenge have taken the program.
Questions this video answers
Section 809 of the Fair Debt Collection Practices Act.
Nearly 70%.
Chapters
What's up, credit heroes? Welcome to the Credit Repair Business Secrets podcast. Okay, there are three terms in the credit repair industry that everyone seems to misuse and misunderstand. They are validation, verification, and disputing. So today I'm going to clear up all the confusion and tell you exactly how each one of these plays a role in your ability to be a successful credit hero and and change a lot of lives. So stick around.
My name is Daniel Rosen and welcome to Credit Repair Business Secrets.
Okay, before I dive into this, if you want to get certified in three different credit repair areas and disputing and have a live experience where you are mentored daily as you launch your very own credit repair business, then join our next Credit hero challenge@creditherochallenge.com okay, let's get into this. Validation, verification and disputing are three terms that everyone seems to get tripped up on, even highly experienced credit heroes. And these terms are very, very important to understand. They are more than just words. Each one of these are a specific part of the credit repair process. And by not fully understanding them, you're going to risk losing their effectiveness. So let's go through them one at a time and get really clear on what each one means. First off, let's go over validation. Validation is the action of making or declaring something legally or officially acceptable. Now, here's what you need to know. Validation does not necessarily relate to the credit repair process and it's very often mixed up with a different term. Verification validation is a process used specifically to help protect a consumer's legal rights under the Fair Credit Reporting Act. Validation is used to help stop debt collectors from harassing consumers. And it's also used as a defensive strategy to protect consumers from debt collectors who are unfairly attempting to to collect debt that is beyond the statute of limitations, meaning it's expired or disputed debt. Now remember, just because a debt collector claims that you owe a debt, that doesn't necessarily make it true. You have the right to demand validation with these third party debt collectors and your clients and have the right to hire you to do it for them. You cannot validate debt with original creditors and you cannot validate debt with the credit bureaus. Okay? You can only do it with these third party debt collectors. Now, the rules are clearly spelled out in section 809 of the Fair Debt Collection Practices Act. So just remember, your goal with requesting validation is to prove that the debt is not valid by omission or lack of information. See, there is a big difference between the proof that debt collectors must provide to a consumer and what they must provide to a court. Debt collectors also are very often able to easily validate debts that are more recent because the bar is set very low and debt collectors are only required to provide limited information. However, as debts get older, the records get lost, the accounts get sold and resold, and then this results in in further loss of records. So this all works in your favor. Look at it this way. If the debt does not belong to your client, if it's not valid, or if it's expired, why should your client be responsible for it? They shouldn't. This is a powerful strategy and a legal maneuver, but again, it has very little to do with credit repair. The one way you may consider adding validation into your credit repair strategy is to go through the process of validation, document everything, and then if the debt collector fails to validate, you can then send that whole paper trail to the bureaus as a reason to delete. So, are we clear on validation? Okay, cool. Let's move on to verification. Verification is the process of establishing the truth, accuracy or validity of something. Verification is not a legal term. Instead, it's used as a term to express the request to investigate and confirm an item's accuracy or completeness. In fact, the term verification only appears a few times within the Fair Credit Reporting act and only relating to identity theft. And very often it's misinterpreted as a legal maneuver when it really is just a verb used to describe a strategy that places the burden of proof on onto the credit bureaus or the furnishers to verify questionable information without the requirements to provide cause, reason or justification. So in simple words, if you are unable to locate a factual error on a specific item, then you can request verification. The bureau or the furnisher is then required to conduct an investigation and verification verify that the information is accurate and complete. Now, if they're unable to, or if the furnisher that reported the information fails to respond to that verification request, then the bureau is required to delete it. So are we clear on verification? Okay, cool. Now let's dive into the final misunderstood credit repair word, and that is disputing. Disputing means to challenge or question whether an alleged fact is true or valid. And it's one of the most common terms that you'll hear in credit repair, but it's very often confused with verification or validation. Under the Fair Credit Reporting act, you may dispute questionable information based on assumption or based on fact. And if they can't prove it, they must remove it. See, most people really don't know what validation, verification or disputing really mean. But by understanding the true meaning of these processes and the differences between them, you now have an unfair advantage. And you can use this to to grow your business and change a whole lot of lives. It is so awesome that you listen to my Credit Repair Business Secrets podcast. I want to thank you for that. And if you are ready to get serious with building or launching your credit repair business, I want to invite you to join the challenge that nearly 70% of our most successful credit heroes have taken. It is a live experience that helps you to get your first client in 24 hours, to get certified in disputing, and to gain a ton of confidence as we walk you through launching your very own credit repair business. So if you're looking for a side hustle, you want to work from home, you want to fire your Boss, quit your 9 to 5, or have your own life changing business and make a great living in the process. You gotta join the Credit Hero Challenge before the doors close. So to join it, go right now to creditherochallenge.com and if you're finding value in the things that I'm sharing on this podcast, be sure to click below to subscribe. And if you're feeling kind, rate me, give me a review or at least give me a thumbs up. Because believe it or not, these things really matter and I can use all the help I can get. And I can't wait to see you on the next episode. And until then, be a Credit Hero and keep changing lives.
Hey everybody, it's Daniel again and really quick. I'd like to invite you to join what I believe is the best thing we have ever created inside the credit repair cloud community. And it is a challenge that we call the Credit Hero Challenge. If you're just planning out your business or you're just getting it started and you dream of having a successful business of your own so you can quit your 9 to 5 and fire your boss and have financial freedom or so you can add another revenue stream to your existing business. If that's your dream, you need to.
Get into this challenge.
We created this challenge to help you to create and launch your very own credit repair business. To build a proper foundation for a really successful business. This challenge is going to help you to understand the strategy, the tactics and all the things you need to be successful at Credit Repair. It really is the greatest thing we have ever built and it will change your life. So I recommend you do it right now. Stop everything. Pause this audio, go online and go to credithero challenge, that's creditherochallenge.com and join the next challenge. And there's a challenge that's starting in just a few days. So go get started right now@creditherochallenge.com. Sam.
