It is a practice of some debt collectors to initiate collection without sufficient documentation that clearly pegs a debt to the corrrect consumer.
They might, for example, obtain a listing of names of consumers in an area of the last known address of a debtor, and make a best guess.
That is the primary reason for the dunning notice and DV process..... to provide consumers the ability to obtain additinal information abuot the source and amount of an alleged collection in order to evaluate its legitimacy. Until the debt collector states that they have investigated and obtained verification, they must cease collection on the debt.
As suggested, if a consumer can make the good-faith statement that they never authorized an account or had a debt with an alleged creditor, and are willing to put that assertion into a sworn police report, the FCRA requires that information to be blocked from their credit report. FCRA 605B.
Additionally, sending a DV won't require the debt collector to provide supporting documentation should they verify, so the FCRA identity theft process also includes the provision that the police report can be sent to the creditor, who must then provide all business records pertaining to the opening and use of t he account, and the consumer can also send a copy to the debt collector, and obtain any information that they would normally be entitled to if they had disputed the debt under any provsion of law.
If, after obtaining more information, you can conclude that the debt collector is acting without adequate basis, you can file a formal complaint with the CFPB or initiate your own legal action against them.
