Claim: When a debt collector buys your $7,000 credit card balance for $221, but reports the full amount to tank your score... They are quietly claiming a legal right to collect a balance they didn’t issue, while lacking the original account application form. So you send a specialized debt validation demand using AI under FDCPA Section 809, catch them missing the 30-day proof window, and wipe it off completely.
Verdict: Partially True (75% confidence)
Explanation: According to Ginsburg Law Group, a collection agency can legally collect the full amount of a debt they purchased for less, confirming the first part of the claim. The Debt Defenders and Hyslip Legal provides background on that under FDCPA Section 809, consumers can request debt validation, and collectors must respond within 30 days. However, no source explicitly states that failure to validate within 30 days results in the debt being wiped off completely, leaving this part of the claim unverifi...