What Information Must a Collection Company Provide?

General Information

In accordance with federal law, collection agencies must provide consumers with information in writing informing them of their legal rights and the company's intentions within five days after the company contacts the consumer for the first time. According to the FDCPA, the company must notify the consumer that he has the right to request that the company validate the debt and also note that, should the individual fail to do within 30 days, the collection agency will assume that the debt is valid. Each time a debt collector contacts a debtor, whether the contact is by phone, mail or email, she must inform the debtor that her intention is to collect a debt and she will use any information she gathers to further that goal. In the collection industry.

If a consumer requests that a collection agency validate the debt it claims he owes, the FDCPA states that the company must provide him with documents proving his liability for the account. The FDCPA does not state which specific documents are required to sufficiently validate a debt. Until the company sends validation documents to the consumer, however, it cannot legally continue to pursue him for the debt.

Federal law requires that debt collectors provide consumers with the name, address and telephone number of the collection agency that they work for should the customer request the information. Collection agency representatives also must provide debtors with the name and address of the creditor to whom the consumer originally owed the debt.

If a collection agency files a report with a credit bureau that a consumer later disputes, the credit bureau will contact the collection agency in an effort to verify the correct credit information for the individual's report. The collection agency must provide the credit bureau with information verifying its original report within 30 days. If it does not do so, the Fair Credit Reporting Act requires the credit bureaus to delete the collection agency's report from the consumer's credit record. If the collection agency later verifies the accuracy of its original report to the credit bureau, it will reinsert the collection agency's account on the consumer's credit file.