What is the difference between a 'validation of debt' and a 'dispute'?

• A. Validation confirms the debt's existence and terms; a dispute asserts the debt or amount is inaccurate and requires investigation.
• B. Validation is optional; dispute is always required.
• C. Validation refers to personal information; dispute refers to payment plan.
• D. Validation means you must pay; dispute means you can ignore.

Answer: (B)

Validation of debt is the mandatory step where a collector must provide documentation showing the debt exists, who the creditor is, the amount owed, and related details after first contact. It confirms the basic facts about what is being collected. A dispute, on the other hand, is when you claim the debt or the amount is incorrect and you request an investigation. When you dispute in writing, the collector is typically required to pause most collection activity and verify the debt before continuing. So, validation tells you that the debt exists and the terms, while a dispute is your challenge to the debt’s accuracy that prompts verification.