An Open Letter to the CFPB: Court Rulings on Validation Notice Hurt Consumers and Collectors

Many debt collectors are extremely concerned that a recent series of rulings from Pennsylvania and New Jersey regarding the validation notice are contrary to the plain language of the Fair Debt Collection Practices Act (FDCPA) and will cause immediate harm to consumers. Thus, we are respectfully requesting that the Consumer Financial Protection Bureau (CFPB) review these concerns and issue guidance.

Attached is a copy of the decision in the Durnell v. Stoneleigh Recovery Associates, LLC case that was decided earlier this month. Durnell is one of several recent decisions from Pennsylvania and New Jersey holding that a debt collector is required to disclose that a consumer must dispute a debt in writing despite the fact that the FDCPA specifically does not require that a consumer dispute be in writing to be valid pursuant to §1692(a)(3), which provides:

(a) Notice of debt; contents
Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing --