Holly Smith featured in USFN Winter 2015 Report

FDCPA:  Split Among the Circuits as to the Validation of Debts & Disputes

holly-smithThere is a split of authority among the circuits as to whether or not a debtor must articulate a dispute in writing, under the validation of debts section of the Fair Debt Collections Practices Act (FDCPA), specifically 15 USC 1692g(a)(3).  This is certainly a topic for servicers to monitor because of the strict liability penalties imposed by the FDCPA.

15 USC 1692g states:

(a) Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing...

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