If you notify a debt collector that a debt is unknown to you, which of the following measures is required by the Fair and Accurate Credit Transactions Act of 2003?
A) You must be provided with information regarding your rights and dispute handling.
B) The creditor can sell the debt to a third party.
C) You must inform any third-party employers about the debt.
D) The creditor can place the debt in collection.

Question

Quizplus · Accepted Answer

According to the Fair and Accurate Credit Transactions Act of 2003, if a debtor notifies a debt collector that a debt is unknown to them, the collector must provide the debtor with information about their rights and dispute handling. They are not allowed to sell the debt to a third party or inform any third-party employers about the debt without proper notification and verification. The creditor can place the debt in collection, but they must follow the proper procedures to verify the debt and inform the debtor of their rights.

If You Notify a Debt Collector That a Debt Is