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LEARN HOW TO START, RUN, OR GROW YOUR CREDIT REPAIR BUSINESS

The Difference Between Validation, Verification, and Disputing

By: Daniel Rosen April 20, 2021

What’s the difference between validation, verification, and disputing? 

What role do they play in credit repair? 

Whether you’re a brand new Credit Hero or you have a growing business and have already changed TONS of lives, these terms can get so easily misused and confusing! 

So today, I’m going to take the confusion out and break down the meaning of these three terms and the role they play in credit repair!

 


1. Validation … Is It Part of Credit Repair?

Let’s start with the actual definition of the word …

Validation is “the action of making or declaring something legally or officially acceptable.”

Validation protects consumers’ rights! 

Surprisingly enough, validation doesn’t necessarily relate to the credit repair process, and it’s often mixed up with “verification” … which is a whole different term!  

Validation is a process used specifically to help protect consumer’s legal rights under the FCRA. 

It’s used to help stop debt collectors from harassing consumers and also as a defensive strategy to protect consumers from debt collectors unfairly attempting to collect time-barred and/or disputed debts. 

Remember - just because a debt collector says you owe a debt doesn’t mean it’s true. 

Here’s why this matters as a Credit Hero... 

  1. You have the RIGHT to demand validation with 3rd party debt collectors and your clients have the right to hire you to do it for them!  
  2. You can’t validate debt with original creditors or the credit bureaus, you can only do it with 3rd party debt collectors. 

If you want to dive deeper into these rules, they’re clearly spelled out in section 809 of the FDCPA. 

  1. Your GOAL with validation is to prove the debt is not valid. If you find that there’s an omission or lack of information, this invalidates the debt!

Now, there’s a BIG difference between the proof debt collectors must provide to a consumer and what they must provide to a court. 

Debt collectors are often able to easily validate debts with consumers that are more recent because the bar is set very low and debt collectors are only required to provide limited information. 

This is really important to understand because as debts age, records are lost and accounts are sold and resold, resulting in further loss of records, which invalidates the debt.

So, why in the world should your client be responsible for debt if it’s not valid or expired? 

They shouldn't!

This is a powerful strategy and legal maneuver, but it’s not part of the credit repair process yet.

Once you document everything, if the debt collector fails to validate - you can then send the paper trail to the bureaus as a reason to delete.  

2. Verification … How Does it Apply to Credit Repair?

Verification is the process of establishing the truth, accuracy, or validity of something.

Often it’s misinterpreted as a legal maneuver when it really is a verb used to describe a strategy that places the burden of proof on the credit bureaus or furnisher to verify questionable information without the requirement to provide cause, reason, or justification. 

In other words, if you are unable to locate a factual error on a specific item, you can broadly request verification

If the bureau or furnisher who is required to conduct an investigation and verify the information is accurate and complete, are unable to - or if the furnisher that reported the information fails to respond to the verification request, they are required to delete it.  

3. Disputing… a Pillar of Credit Repair

Disputing means to challenge or question whether an alleged fact is true or valid. 

It’s one of the most common terms you hear in credit repair!

But when do you know if you should use disputing to get your clients results? 

There are tons of different disputing strategies to use to help your clients. 

It really all boils down to the FCRA. 

Under the Fair Credit Reporting Act, you may dispute questionable information based on assumption or based on fact. 

Either way, the burden of proof is on the bureau or furnisher to verify its accuracy and completeness or delete it!

Now that you’re clear on validation, verification, and disputing, you’re miles ahead of your clients and can use that knowledge to change a LOT of lives. 

If you don’t have a Credit Repair Cloud account, sign up for a free 30 day trial at www.creditrepaircloud.com/freetrial

And, if you want to benefit from our proven and effective methods that we teach in our Basic Disputing Certification Course, I invite you to join the Credit Hero Challenge where for a limited time, you’ll get the course for FREE!

During the Credit Hero Challenge, I’ll hold you by the hand as you launch your very own credit repair business in just a couple of weeks AND for less than it costs to bring your family to McDonald’s for dinner. 

Go to CreditHeroChallenge.com and join today!

We’ve got a new one starting soon, but you’ve got to get in quick before doors close,  otherwise you’ll have to wait for the next one! 

 

 

Be sure to subscribe on your favorite platform below!

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Topics: Podcast

Transcript

0:00  

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 change a lot of lives. So stick around! 

 

So the big question is this. How can we take our passion for helping people with their credit and turn it into a successful business without taking loans without spending a fortune by bootstrapping it from nothing so we can help the most people and still become highly profitable? That is the question, and this podcast will give you the answer. 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 at 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 is 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 the 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 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 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 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 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 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 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 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 nine to five 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! 

 

Want a fast track to creating an amazing business that helps people, changes lives, and makes you a great living in the process. Then I'd like to invite you to my free online training at creditrepaircloud.com/freetraining. In this free training, you will learn how to get clients willing to pay you even if you're just starting out how to get easy credit repair results without being an expert, and how to get all the clients you'll ever need without paying for advertising. Again, this training is absolutely free. Just visit creditrepaircloud.com/freetraining.

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