Disputes and requests for original-creditor information

Authority

12 CFR 1006.38 (Regulation F, Subpart B), implementing FDCPA § 809(b) (15 U.S.C. 1692g(b)). Issued and enforced by the CFPB. Source credit on the eCFR page: [85 FR 76887, Nov. 30, 2020, as amended at 86 FR 5856, Jan. 19, 2021].

Operative text

Definitions — duplicative dispute; validation period

(a) Definitions. For purposes of this section, the following definitions apply: (1) Duplicative dispute means a dispute submitted by the consumer in writing within the validation period that: (i) Is substantially the same as a dispute previously submitted by the consumer in writing within the validation period for which the debt collector already has satisfied the requirements of paragraph (d)(2)(i) of this section; and (ii) Does not include new and material information to support the dispute. (2) Validation period has the same meaning given to it in § 1006.34(b)(5). — 12 CFR 1006.38(a)

Overshadowing prohibition

(b) Overshadowing of rights to dispute or request original-creditor information —(1) Prohibition. During the validation period, a debt collector must not engage in any collection activities or communications that overshadow or are inconsistent with the disclosure of the consumer's rights to dispute the debt and to request the name and address of the original creditor. (2) Safe harbor. A debt collector who uses Model Form B-1 in appendix B to this part in a manner described in § 1006.34(d)(2) has not thereby violated paragraph (b)(1) of this section. — 12 CFR 1006.38(b)

Requests for original-creditor information — cease until sent

(c) Requests for original-creditor information. Upon receipt of a request for the name and address of the original creditor submitted by the consumer in writing within the validation period, a debt collector must cease collection of the debt until the debt collector: (1) In general. Sends the name and address of the original creditor to the consumer in writing or electronically in the manner required by § 1006.42; or (2) Special rule if the current creditor and the original creditor are the same. In lieu of taking the actions described in paragraph (c)(1) of this section, reasonably determines that the original creditor is the same as the current creditor, notifies the consumer of that fact in writing or electronically in the manner required by § 1006.42, and refers the consumer to the validation information previously provided pursuant to § 1006.34(a)(1). — 12 CFR 1006.38(c)

Disputes — cease until verification (or duplicative-dispute notice)

(d) Disputes —(1) Failure to dispute. The failure of a consumer to dispute the validity of a debt does not constitute a legal admission of liability by the consumer. (2) Response to disputes. Upon receipt of a dispute submitted by the consumer in writing within the validation period, a debt collector must cease collection of the debt, or any disputed portion of the debt, until the debt collector: (i) Sends a copy either of verification of the debt or of a judgment to the consumer in writing or electronically in the manner required by § 1006.42; or (ii) In the case of a dispute that the debt collector reasonably determines is a duplicative dispute, either: (A) Notifies the consumer in writing or electronically in the manner required by § 1006.42(a)(1) that the dispute is duplicative, provides a brief statement of the reasons for the determination, and refers the consumer to the debt collector's response to the earlier dispute; or (B) Satisfies paragraph (d)(2)(i) of this section. — 12 CFR 1006.38(d)

Plain English

Interpretation — the quotes above win on any conflict.

• The section is triggered by written disputes / original-creditor requests received within the validation period (as computed under § 1006.34(b)(5)). A written dispute inside that window forces a full stop on collection of the debt (or the disputed portion) until verification of the debt or a copy of a judgment is sent to the consumer in a § 1006.42-compliant manner.
• A written original-creditor request inside the window likewise forces a full stop on the entire debt until the collector sends the original creditor's name and address — or, if current creditor = original creditor, sends a notice saying so and points back to the validation information.
• A duplicative dispute (substantially the same, already answered, nothing new and material) can be answered with a short "this is duplicative" notice referencing the earlier response, instead of re-verifying.
• During the validation period, nothing the collector does or says may overshadow or contradict the dispute/original-creditor rights disclosures. Using Model Form B-1 properly is a safe harbor against overshadowing by the notice itself — it does not immunize other collection activity during the period.
• Silence is not admission: a consumer who never disputes has not legally admitted the debt.

Traps / edge cases

• Writing + in-window only (for this section): an oral dispute, or a written dispute after the validation period, does not trigger the § 1006.38(d)(2) cease. (Other duties — e.g. furnisher/FCRA dispute flagging and § 1006.30 rules — may still attach; those live on other pages.)
• Scope of the cease differs: a dispute stops collection of the debt or disputed portion; an original-creditor request stops collection of the whole debt.
• The cease lifts when the response is sent ("until the debt collector sends…"), not when the consumer receives it — but sending must comply with § 1006.42 (reasonably expected actual notice; retainable form; E-SIGN for electronic).
• Duplicative-dispute determination must be "reasonable" and requires that the earlier dispute was already answered under (d)(2)(i). A second dispute with new and material information is NOT duplicative and requires fresh verification.
• The overshadowing prohibition (b)(1) covers all collection activities and communications during the validation period — e.g. demanding payment before the stated dispute deadline in a way that contradicts the disclosed rights.
• Consumer-only: applies to FDCPA consumer debt, not commercial claims.

Related

• ../fdcpa/validation.md — FDCPA § 809(b) statutory layer
• ./validation-notice.md — the notice that starts the validation period (§ 1006.34)
• ./required-disclosures-delivery.md — how responses must be sent (§ 1006.42)
• ./electronic-communications.md — electronic dispute responses
• ./communications-opt-outs.md
• ./overview.md
• ../cfpb-guidance/debt-collection-faqs.md