Debt Validation Under the FDCPA (15 U.S.C. § 1692g)

The validation notice

Under 15 U.S.C. § 1692g(a), a debt collector must send a written notice within five days after its first communication with the consumer, unless the information was in that first communication. The notice must state the amount of the debt and the name of the creditor to whom it is owed. It must also explain the consumer’s right to dispute the debt within thirty days after receiving the notice.

The Consumer Financial Protection Bureau’s Regulation F, 12 C.F.R. § 1006.34, adds detail about what the notice must contain, including an itemization of the debt. The CFPB also publishes a model validation notice.

How to dispute

• Put it in writing. The stop-collection protection in § 1692g(b) applies to a dispute made in writing within the thirty-day period.
• Ask for the original creditor. In the same window, you can ask in writing for the name and address of the original creditor, if it is different from the current creditor.
• Keep proof of the date. The law does not require certified mail. However, certified mail with a return receipt gives you a record of when the collector received your letter.
• Keep copies. Save the notice, your letter, the receipt and everything the collector sends back.

What the collector must do

If you dispute in writing within the thirty days, § 1692g(b) requires the collector to stop collecting the debt, or the disputed part, until it mails you verification of the debt or a copy of a judgment. The same applies to a request for the original creditor’s name and address. During the thirty days, collection activity may not overshadow or be inconsistent with your right to dispute.

Courts disagree about how much “verification” requires. For example, in Chaudhry v. Gallerizzo, 174 F.3d 394 (4th Cir. 1999), the court said verification can be as simple as confirming in writing that the amount demanded is what the creditor claims is owed. Other courts and state laws may expect more. So a validation letter can request the original agreement and the chain of title, but federal law may not require the collector to send them.

If you miss the window

Missing the thirty days does not mean you admit the debt. Under § 1692g(c), a court may not treat a consumer’s failure to dispute as an admission of liability. You can still dispute later, raise defenses in a lawsuit and dispute credit reporting under the Fair Credit Reporting Act.

If a collector breaks the rules

The FDCPA lets a consumer sue a debt collector that violates it. Under 15 U.S.C. § 1692k, a court may award actual damages, additional statutory damages of up to $1,000 in an individual case, and attorney’s fees and costs. The usual deadline to sue is one year from the violation.

Debt collection is governed by federal law and state law. State statutes of limitations, licensing rules and court procedures differ, so check your state’s rules and talk to a licensed attorney about an active case.

Researching debt validation under the fdcpa in your state

First, find the statute or rule that governs debt validation under the fdcpa where you live. State law controls most of these questions, so the answer can change from one state to the next. Next, read recent decisions from the appellate courts in your state. They show how judges apply the law today. Also, check the local rules of the court that would hear your case. Our state procedures guide links to each state’s official rules. In addition, the Research Center explains how to confirm a source is still good law.

Sources and further reading

Official sources used on this page:

• law.cornell.edu
• law.cornell.edu
• law.cornell.edu

Related reading on Lawtopolis:

• Debt Buying and Debt Collection: How It Works
• Proving Ownership of a Purchased Debt: Chain of Title
• Disputing Collection Accounts on Your Credit Report (FCRA)