What should a collections manager do if a debtor disputes the debt?

When a debtor disputes a debt, the collections manager must investigate and respond to the dispute as required by law. This obligation stems from regulations such as the Fair Debt Collection Practices Act (FDCPA), which governs the conduct of debt collectors. When a debtor raises a dispute, they are often asserting their rights to verify the accuracy of the debt or to contest its validity.

The collections manager is legally required to acknowledge the dispute and provide necessary documentation or evidence that substantiates the debt. This may involve reviewing the records related to the debt, communicating with the original creditor, and ensuring that any information reported to credit bureaus is accurate and fair.

Failing to address the dispute properly can lead to legal repercussions for the collections agency, including potential lawsuits or penalties. Therefore, engaging in an investigation and providing a response is not only a legal requirement but also essential for maintaining professional integrity and trust in the collections process.