Validation of Debt Says

question 327

Multiple Choice

Validation of debt says:

• A) Consumer must be sent debt validation in writing within five calendar days of initial communication unless information is contained in initial communication or unless consumer pays the debt
• B) If consumer disputes a debt in writing within 60 days, all collection activity must stop until the debt is verified
• C) If consumer disputes a debt in writing within 15 days, all collection activity must stop until the debt is verified
• D) If a consumer owes multiple debts and makes any multiple payments, debt collector must apply to debt in accordance with the consumer's direction

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Definitions:

Obligor

An individual or entity legally bound to provide a benefit or payment to another in accordance with a contract or legal agreement.

Materially Increase

Refers to a significant rise in the size, amount, or extent of something, often in a contractual or financial context.

Setoff

is a legal mechanism allowing a debtor to reduce the amount they owe to a creditor by any sum the creditor owes to them.

Obligor

An individual or entity that is legally or contractually bound to provide something to another party, the obligee.