What actions and disclosures must a collection agency provide to a debtor when commencing a collection?
A third-party collection agency must comply with the federal Fair Debt Collection Practices Act (FDCPA). The Act outlaws debtor harassment. Collection agencies must provide the following information to the debtor either in the initial communication or in writing within 5 days thereafter: (1) the amount of debt, (2) the name of the current creditor, (3) notice about the 30-day period of time in which the debtor may dispute the debt, (4) notice about the obligation of the collection agency to send the debtor verification of the debt if the debt is disputed, and (5) notice that if the consumer requests it within 30 days, the debt collector will provide the name and address of the original creditor, if different from the current one.
