Provide Timely Validation Documents for Consumer Disputes

Under the Fair Debt Collections Practices Act, a consumer is afforded a certain timeframe in which they can dispute a debt or a portion of the debt. Good business ethics and business best practices suggest allowing the consumer to dispute outside of the allotted FDCPA  timeframe as well. Allowing a consumer to dispute the debt and responding to their request in proper time often resolves the account. Many consumers simply need reminding. Life happens. They forget. What does this mean?

When a consumer disputes a debt with your collection agency, they must:

• notify you in writing about the consumer dispute.
• respond to the consumer within thirty days of the dispute with an answer.
• If validation of the debt is not given, they must cease collection activity on the account.

When a consumer disputes a debt with your collection agency, you must:

• provide supporting documents such as ID, consent forms, signatures, statements, explanations, or ledgers to our office within thirty days of the dispute notification. The agency should notify you promptly of the dispute.
• If you do not provide validation of the debt within the proper timeframe, the account will be closed uncollectable.

Allowing a consumer to dispute a debt often resolves the debt quickly with payment. Consider the access you have to your consumer records and how you would handle validating a debt should a consumer dispute. Timely response often ends in payment in full.