Can debt collectors demand payment or take legal action during the 30-day period for disputing a debt?

Published: Thursday, August 31, 2006

Yes. The 30-day validation period allows the consumer time to dispute the alleged debt. The Federal Trade Commission has stated that section 809 of the Fair Debt Collection Practices Act is "â€¦intended to assist the consumer when a debt collector inadvertently contacts the wrong consumer at the start of her collection efforts." During this 30-day period, unless written verification request is furnished by the consumer, the debt collector is free to pursue collection activity, including filing suit. Upon receipt of a written verification request, however, a collector must cease collection efforts until verification is mailed to the consumer.

A collection letter may present a settlement offer, allowing the consumer to settle the debt for an amount less than the total owed, as long as the settlement offer does not overshadow the validation period or use deceptive language to present the offer.