Collection Policies and Procedures: Debt Verification Requests

The Federal Fair Debt Collections Practices Act provides that a Debtor may make a request that the debt be verified. The FDCPA requires that such a request be made by the Debtor in writing within thirty (30) days of his/her receipt of our initial demand letter (our 1st contact with the Debtor is always made in writing and the FDCPA Debt Validation Notice is always included on the reverse side of this letter). When such a written request is received by LGW all collection action (letters, calls, legal action, etc.) shall be suspended and the verification request shall be immediately referred to one of LGW's attorneys. Such attorney shall, at a minimum, contact the creditor to confirm the account information including, but not limited to, the identity of the Debtor, the account number, the account balance, the delinquency status and such other information as is necessary to complete the verification process. Any documentation necessary to substantiate the claim (if not already in the possession of LGW) shall be sought from the creditor at such time. Once the LGW attorney has obtained the necessary information (and documentation as necessary) to verify the debt such information shall be transmitted to the Debtor in writing. Only after the verification process has been completed as outlined above, may collection activity (letters, calls, legal action, etc.) resume.

Requests for debt verification received which are not in compliance with the FDCPA's requirements outlined above (not made with in the thirty (30) day time frame or made orally but not in writing) shall be treated by LGW as disputes. Debtor disputes should be brought to the attention of one of LGW's attorneys for guidance in determining the correct course of action for resolution of or response to the dispute. It is our experience that quickly resolving such disputes increases the likelihood that a recovery of the creditor's account balance will be obtained. Debt collection activity does not have to be suspended during the dispute resolution period, however, such action should be approved by the attorney in charge of resolving the dispute before it is taken.