PCS Debt Validation & Dispute Handling Flashcards

A consumer sends a 'cease communication' letter. Which of the following collector actions is still permissible?

Answer: Sending a letter stating the collector will cease further efforts

After a cease communication request, the collector may only contact the consumer to notify them of termination of efforts or to advise of specific legal action being taken.

Under the Mini-Miranda requirement, what must a collector disclose at the start of every communication?

Answer: That the communication is from a debt collector and that information obtained will be used for that purpose

The Mini-Miranda requires collectors to disclose that they are a debt collector attempting to collect a debt and that any information obtained will be used for that purpose.

A consumer disputes a medical debt citing 'wrong insurance billing.' The BEST first step for the collector is to:

Answer: Place the account in dispute status, contact the healthcare provider for insurance billing records, and investigate

The collector should halt collection, document the dispute, and work with the original creditor to verify whether the correct insurance was billed before taking further action.

What is the significance of the 'date of first delinquency' (DOFD) on a collection account?

Answer: It marks the start of the 7-year credit reporting clock under the FCRA

The DOFD, established at the original creditor, starts the FCRA's 7-year maximum reporting period for the collection tradeline.

A debt collector receives a dispute claiming the balance is incorrect. After investigation, the collector finds the balance is actually higher than reported. The collector should:

Answer: Correct the balance accurately and notify the CRAs and the consumer of the accurate amount

Furnishers must report accurate information; if investigation reveals an error in either direction, they must update the information to be correct and notify all relevant parties.

Which federal rule introduced 'Regulation F,' significantly updating FDCPA implementation for debt collectors?

Answer: CFPB Final Rule effective November 30, 2021

The CFPB's Regulation F, effective November 30, 2021, updated FDCPA rules including limits on call frequency, email/text communications, and social media contact.