Aug 20, 2014
NEW FDCPA REQUIREMENT FOR DEBT VERIFICATION: IS THERE MORE TO THE STORY?
The enactment of the FDCPA in 1977 began long-standing debate regarding what information a debt collector must produce to a consumer in response to a request for validation. The FDCPA itself is vague, stating that after receiving a request for validation, “the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt . . .” Nowhere in the FDCPA is the term “verification” defined. The legislative history of the FDCPA, however, provides some guidance where it states:
This provision will eliminate the recurring problem of debt collectors dunning the wrong person or attempting to collect debts which the consumer has already paid.
A recent Sixth Circuit Court of Appeals Case, Haddad v. Alexander, Zelmanski, Danner & Fioritto, PLLC, examined the issue of what constitutes adequate verification in the context of multiple requests for validation by the consumer focused on a specific portion of a debt.…