Debt Verification Responses under the FDCPA

We posted yesterday on the NCLC’s debt verification letter recommendations.  Now we turn to the question of what debt collectors must provide in response to these requests for verification.  The FDCPA states:

(b) Disputed debts

If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or a copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector. Collection activities and communications that do not otherwise violate this subchapter may continue during the 30-day period referred to in subsection (a) unless the consumer has notified the debt collector in writing that the debt, or any portion of the debt, is disputed or that the consumer requests the name and address of the original creditor. Any collection activities and communication during the 30-day period may not overshadow or be inconsistent with the disclosure of the consumer’s right to dispute the debt or request the name and address of the original creditor.

As seen, the FDCPA isn’t exactly clear.  The common sense approach is that debt collectors should provide documents proving that they own the debt and an accounting of the amount claimed.  This is rarely done in practice.

A Court in the Eastern District of Texas (Mack v. Progressive Fin. Servs., No. 4:13cv544, 2015 U.S. Dist. LEXIS 1803 (E.D. Tex. Jan. 7, 2015) adopted the analysis set forth in Haddad v. Alexander, Zelmanski, Danner & Fioritto, PLLC, 758 F.3d 777 (6th Cir. 2014).  The Hadden Court stated:

The verification provision must be interpreted to provide the consumer with notice of how and when the debt was originally incurred or other sufficient notice from which the consumer could sufficiently dispute the payment obligation. This information does not have to be extensive. It should provide the date and nature of the transaction that led to the debt, such as a purchase on a particular date, a missed rental payment for a specific month, a fee for a particular service provided at a specified time, or a fine for a particular offense assessed on a certain date.

While still not a clear cut answer, which is difficult to do, Mack and Hadden do provide more guidance on what is required from debt collectors.

Verification Responses Are a Case by Case Anaysis

If you have requested verification of a debt and have gotten a subpar response in return, please give our office a call.  We will go over the response with you.