PCS Debt Validation & Dispute Handling Flashcards

Under the FCRA, a data furnisher must investigate a consumer dispute within how many days?

Answer: 30 days (extendable to 45 days with additional consumer info)

The FCRA generally requires furnishers to complete their dispute investigation within 30 days, extendable to 45 days if the consumer provides additional information.

A collector receives a credit bureau dispute forwarded by the CRA. Which system must the collector use to respond?

Answer: E-OSCAR (Online Solution for Complete and Accurate Reporting)

E-OSCAR is the industry-standard electronic system used by furnishers and CRAs to exchange dispute information and transmit Automated Credit Dispute Verification (ACDV) forms.

If a collector determines a disputed debt is valid after investigation, they should:

Answer: Notify the consumer and the CRA of the results and update the tradeline if necessary

After investigation, the furnisher must notify the consumer of the results and update or correct any inaccurate information with the CRAs.

What is a 'stale' debt, and why is it significant in dispute handling?

Answer: A debt beyond the statute of limitations, which may still be collectible but cannot be sued upon

A stale or time-barred debt has exceeded the statute of limitations, meaning collectors cannot sue to enforce it, though they may still attempt to collect voluntarily.

When a consumer claims 'identity theft' as the reason for disputing a debt, the collector must:

Answer: Request an FTC Identity Theft Report or police report and review the account for fraud indicators

Collectors should request documentation such as an FTC Identity Theft Report and review the account for signs of fraud before ceasing collection or deleting records.

Which action constitutes 're-aging' a debt, which is prohibited under the FCRA?

Answer: Updating a tradeline with a new delinquency date to extend the 7-year reporting period

Re-aging occurs when a collector illegally resets the delinquency date to a more recent date, fraudulently extending the 7-year period a collection can appear on a credit report.