In Virginia and NC, Consumers Can Dispute Debts Verbally

more+
less-
more+
less-
Explore:  Debt Collection FDCPA

If you routinely collect debts from consumers, you are probably familiar with the requirements of the federal Fair Debt Collections Act (FDCPA).

Under this act, consumers who disputed a debt had thirty days after receiving a debt collection notice to notify the creditor or debt collector in writing that the debt was not valid. Until now.

This week, the U.S. Court of Appeals for the Fourth Circuit (which covers North Carolina and Virginia) ruled in Clark v. Absolute Collection Service, Incorporated that the FDCPA does not require a consumer to dispute the validity of a debt in writing.

If you collect consumer debts in North Carolina, Virginia, South Carolina, Maryland or West Virginia, you need to change your procedures immediately to accept verbal notices that the consumer is disputing the validity of the debt.

Also complicating collection law, is that some federal Circuit Courts agree with the Fourth Circuit interpretation, but the Third Circuit does not. So in New Jersey, Pennsylvania and Delaware, debts must be disputed in writing.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Sands Anderson PC | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×
×