Whether you are faced with an unexpected bill or need to prove that you have more than enough money to handle a large credit card debt, a debt validation letter template can be the key to obtaining relief. A validation letter outlines the reasons behind a creditor's decision to deny your request for a debt consolidation loan. The letter should be written by a professional and should contain the following elements:
First, it should explain the cause of the failure, such as an assessment of the credit report that shows that the creditor's statement is inaccurate. If the failure is due to a recent change in your financial situation, the letter should make the creditor aware of your current situation and explain why you are requesting this new loan. It should also clarify why you are seeking relief, such as a health emergency.
Next, the hardship letter should provide evidence that you are unable to pay the debt on your own. Some examples of this may include a letter from your doctor stating that you cannot work full time due to illness, a letter from your spouse showing that you are unemployed or unable to work because of illness, or a letter from your employer, listing the work you have been unable to do recently due to an unforeseen illness. By providing documentation of your inability to pay, you will help the creditor in knowing why your request is denied.
The letter should explain the financial hardship. This could include a letter from your family doctor or veterinarian explaining that your pet has recently passed away or a letter from your bank stating that you are behind on your payments. Another example of financial hardship could be the loss of your job due to redundancy. Such letters are generally used when the issue is an illness or accident and help the creditor in understanding your financial difficulties and offer some solution to assist you in overcoming your problem.
It is also important to show how your credit standing may affect your creditor's decision to approve or reject your request. It is common for creditors to consider people who maintain good credit to be more responsible in their spending habits. By providing this information, you can help the creditor recognize your true financial condition.
Finally, the letter should include any other documents that might be necessary for the approval process. These documents may include a copy of your credit report, a letter of repayment agreement, or a letter of appeal.
The letter must validate identity and, as such, must show evidence of your identity. Many times, this can be proved by providing a driver's license, passport, or social security card. All these documents provide evidence of your true identity.
It is common for the letter to include verification of identity by showing a copy of your credit report, which will be in one of three categories: damaged, missing, or inaccurate. A damaged credit report will mean that you have had an adverse reaction to a recent creditor action, such as late payment, default, or bankruptcy.
Missing credit report means that the creditor did not send you a copy of your credit report in a timely manner. It is common for credit bureaus to lag within 30 days of sending a credit report to clients, so it is important to submit a certified letter of request to your credit bureau that explains the date of the first copy of your credit report, as well as the exact date the credit bureau received your request for a copy.
The report should also contain information regarding loan delinquencies or bankruptcies. By showing proof of being over six months behind on bills, the creditor will be more likely to take note of your situation and approve your request.
Finally, the creditor's letter should contain any requested documents that relate to your credit history. If you need proof of tax returns, a certified copy of them, or an identity verification letter, these should be included.
If you follow the guidelines in the validation letter template, the creditor should not have any reason to refuse your request for a loan consolidation loan. For a client with a bad credit history, this type of letter is proof that the company takes these issues seriously.
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