How should a collector respond if the consumer claims identity theft?

• A. Continue collection on the account.
• B. Escalate to a law firm immediately.
• C. Pause collection on that account, verify the claim, and request supporting documentation; follow internal procedures.
• D. Delete the account from all records.

Answer: (C)

When a consumer claims identity theft, the priority is to pause any collection activity on that account, verify the claim, and obtain supporting documentation, then follow internal procedures. This approach protects the consumer from being pursued for debts that aren’t theirs and ensures you’re handling the dispute in a responsible, auditable way. It aligns with the obligation to verify disputed debts before continuing collection efforts, and it prevents potential harassment while a fraud investigation is underway. If the claim is confirmed, you would adjust or halt collections accordingly and take appropriate steps per policy; if not, you can resume normal collection with a clear record of the verification process. Avoid continuing collection without verification or deleting records prematurely, as both can create problems for accuracy and accountability.