Well, I am not Ladyinred or Jetx. But, I can answer your question.
Q. If I sent a letter for validation of my debt, how long do they have to get back to me with proof? Are they OBLIGATED to get back to me?
A. This answer is a little long, so bear with me. It is important to understand the process.
First, the FDCPA governs only third party collection agencies. Original creditors (like a credit card company) are not subject to the FDCPA. However, some states have a state DCPA that does govern original creditors. The rest of this response is devoted entirely to collection agencies under the FDCPA.
Within 5 days of the initial communication, the collection agency must send a written notice to the consumer. This “written notice” must contain certain information including a description of the consumer’s right to dispute the accuracy of the information.
The initial communication can be a collection notice (which may contain the "written notice", a telephone call initiated by the collector, a telephone call initiated by the consumer, or a "blind DV" initiated by the consumer when the consumer has had no prior contact with the collector (for example, the consumer noticed an entry on a credit report).
A dispute or a request for validation stops collection activity, if and only if, the collector receives the dispute not later than 30 days of the consumer’s receipt of the “written notice”.
Under the FDCPA, reporting to a credit reporting agency is a communication and thus collection activity, however that area is still a little fuzzy. There is no case law that says reporting to the credit reporting agencies violates the FDCPA. There is however, an FTC staff opinion on the subject.
If your dispute/request for validation was not sent in time, the collector does not have to cease collection activity under any circumstances. A consumer has the right to request validation at any time -- even months or years after the initial communication.
A Collection Agency is not required to respond to the request for validation. They are only required to cease collection activity until they validate (again, only under the limited condition described above).
There is not much clarity as to what constitutes validation. In its simplest sense validation is nothing more than "yes, you owe the debt and the amount is $xxx and the original creditor was XYZ". However, it is clear that the collection agency must go back to the original creditor in order to be able to make that "yes, you owe it" statement -- just checking their internal files is not sufficient. This is, I believe, the most common reason collection agencies do not provide a validation response very often and why it just goes to another collection agency or back to the original creditor.
Some on debt message boards maintain that the creditor is required to prove the debt (as in copies of original agreements, every statement since Adam and Eve, video tape of you using the card, etc.). There is no such provision in the FDCPA. The creditor can only be required to provide such proof during the discovery stage of a lawsuit -- and then only as ordered by the judge.
Q. Also, can they win a judgment without me even being notified of the case?
A. No. You must be served notice of the lawsuit (called a summons in most states). A judgment is awarded when you lose the lawsuit or if you fail to reSpond to the lawsuit (the latter is called a default judgment).
Different states have different rules about what is "good service" of the summons. In some states, the summons must be placed directly in your hands or via certified mail. Other states allow what is referred to as "pitch and ditch" meaning they just leave it on the door of whatever address they have.
My best advice to you here is to make sure the creditor has a good address for you. This is one of those situations where ignorance is not bliss. You want to know about the summons so you can make decisions are respond. If the creditor has only an old address and they can show they tried to serve the summons, most judges will allow the default judgment even though you had no knowledge of the summons.
I hope this answer was as good as you would have received from Ladyinred or Jetx -- for sure, it is longer.
