PCS PCS Debt Validation & Dispute Handling 1 — Questions and Answers
Question 1: Under the FDCPA, how many days does a consumer have to request debt validation after receiving the initial notice?
- 15 days
- 30 days (Correct answer)
- 45 days
- 60 days
Correct answer: 30 days
The FDCPA grants consumers 30 days from receipt of the initial validation notice to dispute the debt or request verification.
Question 2: When a consumer sends a written dispute within the validation period, the debt collector must:
- Continue collection calls while investigating
- Cease collection activity until verification is mailed to the consumer (Correct answer)
- Close the account immediately
- Report the dispute to all three credit bureaus within 24 hours
Correct answer: Cease collection activity until verification is mailed to the consumer
Upon timely written dispute, the collector must stop collection efforts and mail verification or a copy of a judgment before resuming.
Question 3: Which document typically satisfies a debt validation request for an original credit card debt?
- A collector's internal account notes
- A copy of the signed credit agreement and account statement (Correct answer)
- A verbal confirmation from the original creditor
- A credit bureau report showing the balance
Correct answer: A copy of the signed credit agreement and account statement
Courts generally hold that a copy of the original signed agreement plus a statement showing the balance constitutes adequate verification.
Question 4: A consumer disputes a debt in writing AFTER the 30-day validation period. The collector should:
- Ignore the dispute entirely
- Cease all collection activity permanently
- Continue collection but may not report the debt as undisputed without noting the dispute (Correct answer)
- Immediately initiate legal action
Correct answer: Continue collection but may not report the debt as undisputed without noting the dispute
Late disputes don't trigger the FDCPA validation obligation, but collectors still cannot falsely represent the debt's status and should note the dispute.
Question 5: Which of the following is NOT a valid method a consumer may use to submit a debt validation request?
- Certified mail
- Written letter delivered in person
- Verbal request during a collection call (Correct answer)
- Email if the collector has agreed to electronic communication
Correct answer: Verbal request during a collection call
The FDCPA requires a written dispute to trigger the validation obligation; a verbal request during a phone call does not carry the same legal weight.
Question 6: When verifying a purchased debt, the debt buyer must be able to provide:
- Only the purchase price paid for the debt
- Chain-of-title documentation tracing ownership back to the original creditor (Correct answer)
- A letter from the current collector's compliance officer
- The debtor's Social Security number confirmation
Correct answer: Chain-of-title documentation tracing ownership back to the original creditor
Chain-of-title documents — such as a bill of sale and assignment records — prove the debt buyer legitimately owns the account and has the right to collect.
PCS PCS Debt Validation & Dispute Handling 1
Under the FDCPA, how many days does a consumer have to request debt validation after receiving the initial notice?