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