It is a powerful weapon against debt collectors that protects consumers from unfair and deceptive debt collection practices.
After receiving your dispute, the debt collector cannot contact you until it has provided you with the requested information.
You'd be surprised how often a collection agency cannot validate a debt and therefore cannot legally enforce collections. (c) Admission of liability The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer. It means that you have a right to dispute the debt, but not doing so also gives the collector the right to assume the debt is valid.
Here are four questions posed to legal counsel at the Federal Trade Commission which are important enough to include here: 1) "Is it permissible under the Fair Debt Collection Practices Act for a debt collector to report charged-off debts to a consumer reporting agency during the term of the 30-day validation period detailed in Section 1692g? As stated in the Commission's Staff Commentary on the Fair Debt Collections Act, a debt collector may accurately report a debt to a consumer reporting agency within the thirty day validation period (p. We do not regard the action of reporting a debt to a consumer reporting agency as inconsistent with the consumer's dispute or verification rights under 1692g.
Often junk debt buyers have little information about the debts they own.
They purchase a portfolio of debts often with little more than basic information about you and the alleged debt.