A debt collector contacted me

Don’t pay in a panic, and don’t ignore it. First find out if the debt is real and if it’s yours. Federal law gives you the right to get written information about the debt and to dispute it. Debt collectors can’t harass you, lie to you, or treat you unfairly, even if you owe the debt.

Real debt collector or scam?

Not everyone who says you owe a debt is a real debt collector. The FTC says a caller may be a fake debt collector if they:

• want you to pay a debt you don’t recognize,
• refuse to give you their mailing address or phone number, or
• pressure you or try to scare you by threatening to report you to the police or have you arrested.

The CFPB says a real debt collector must give you basic information about the debt (called “validation information”). If they don’t or can’t give it, it could be a scam. The FTC also suggests doing your own checking: contact the original creditor (using a number you find yourself) and ask if they sold the debt or hired a company to collect it.

Do this right now

1. Get the facts. Write down the caller’s name, company, mailing address, and phone number, and the date and time. The FTC suggests this before you pay anything.
2. Don’t give bank, card, or Social Security numbers until you have the validation information or already know the collector. That’s the CFPB’s and FTC’s advice for avoiding scammers.
3. Ask for validation information if you didn’t get it. Collectors must give it to you when they first contact you or within 5 days after.
4. Check it. Is it your debt? Is the amount right? Do you recognize the creditor?
5. If something is wrong, dispute it in writing within 30 days. Use our dispute letter or verification request.
6. Keep records. The CFPB says to keep every letter and message, write down dates and times of calls and what was said, and keep copies of what you send. Be careful what you say: the CFPB notes collectors keep records too, and an admission that you owe the debt could be used against you.
7. If it is your debt, the FTC says to look at your options, like a payment plan or a settlement for less. Before you pay to settle, get a signed letter from the collector saying the payment settles the whole debt.

The validation notice: what it must tell you

Under the CFPB’s debt collection rule (Regulation F), the collector usually sends this information in a written notice, either as its first contact or within five days after. It can come by mail or electronically. The CFPB says it generally must include:

• a statement that the communication is from a debt collector,
• your name and mailing address, and the debt collector’s name and mailing address,
• the name of the creditor you owe the debt to (more than one creditor may be listed),
• the account number for the debt, if there is one,
• an itemization of the debt since a certain date, showing interest, fees, payments, and credits,
• the current amount of the debt,
• information you can use to reply, for example if the debt isn’t yours or the amount is wrong, and
• an end date for the 30-day period when you can dispute the debt.

The CFPB says the notice includes a tear-off form with checkboxes you can use to dispute the debt or ask for more information. If the collector offers a way to reply electronically, you can use that instead of mail.

Dispute the debt or ask for proof: the 30-day window

• You have 30 days after you get the validation information to dispute all or part of the debt in writing. The notice lists the end date.
• If you dispute in writing within those 30 days, or ask for the name and address of the original creditor, the collector must stop collecting the disputed amount until it sends you verification, like a copy of the original bill (CFPB, FTC).
• After it sends verification, the collector can start collecting again. You can keep disputing if you still disagree (CFPB).
• If you don’t dispute within 30 days, the FTC says the collector will assume the debt is valid. The CFPB says missing the 30 days or not putting it in writing can affect your rights, but you can still send a dispute later.
• Send it in a way you can prove. The FTC and CFPB suggest certified mail with a return receipt, and keeping a copy. If the collector accepts disputes online, keep a copy of that too.

When and how a debt collector can contact you

The federal Fair Debt Collection Practices Act (FDCPA) covers personal and household debts like credit cards, car loans, medical bills, student loans, and mortgages. It doesn’t cover business debts. The FTC says debt collectors:

• can’t contact you before 8 a.m. or after 9 p.m. unless you agree,
• can’t contact you at work if you tell them you’re not allowed to get calls there,
• can’t call more than 7 times in 7 days about a particular debt, or within 7 days after talking with you by phone about it,
• can’t email, text, or privately message you on social media if you ask them to stop,
• generally can’t discuss your debt with anyone except you or your spouse (or your attorney), and can’t publicly reveal your debt, for example on a postcard or an envelope,
• can’t threaten to hurt you, use obscene language, lie about the amount, pretend to be a lawyer or the government, or threaten legal action they don’t intend to take.

Opting out of emails and texts: the CFPB says every debt collection email or text must include a simple way to opt out, such as a link or replying “STOP.” You don’t have to use their method. If you call and ask them to stop emailing, they must honor it. Words like “stop,” “unsubscribe,” “end,” “quit,” or “cancel” generally count.

Stopping all contact: you can tell a collector in writing to stop contacting you. After they get your letter, they can only contact you to say they’ll stop, or to tell you about a specific action they or the creditor may take, like filing a lawsuit. This does not make the debt go away. The CFPB says they may still sue or report the debt to a credit reporting company. If you dispute the debt, the CFPB suggests doing that first. The FTC suggests talking to the collector at least once before you stop all contact, especially if you don’t think you owe it.

Credit reports: the FTC says before a collector reports a debt to a credit reporting company, it must first talk to you about it or send you a letter or electronic message and wait a reasonable time (usually 14 days) to see if it comes back undeliverable.

Federal benefits: the FTC says many federal benefits, including Social Security, SSI, and veterans benefits, are generally exempt from court-ordered garnishment, except to pay delinquent taxes, child or spousal support, or student loans.

Old debts: time-barred debt and statutes of limitations

• Debt usually doesn’t just go away, but collectors have a limited time to sue you. That time limit is called the statute of limitations. The FTC says it usually starts when you miss a payment. After it runs out, the debt is called “time-barred.”
• How long it lasts depends on the type of debt and the state (your state, or the state named in your credit agreement). usaBob doesn’t list state time limits because they vary and change. The FTC suggests asking the collector what its records show as your last payment date, then checking your state’s law, your state attorney general’s office, or a legal aid office.
• A payment can restart the clock in some states. The FTC says in some states, making any payment, or even acknowledging in writing that you owe the debt, starts a new time period. Then the collector may be able to sue you for the full amount. Think about talking to a lawyer before you pay anything on an old debt.
• It’s against the law for a collector to sue you, or threaten to sue you, over a time-barred debt (FTC). If you are sued anyway, don’t ignore it. Go to court and tell the judge the statute of limitations has run out. Bring proof of your last payment date.
• Some states don’t allow collectors to contact you about time-barred debt at all. Others do (FTC).
• A time-barred debt can still be on your credit report. The FTC says negative information can generally stay for seven years.

Never do this

If a debt collector sues you

A lawsuit starts with court papers. The FTC’s advice:

1. Never ignore a court summons. If you don’t respond, the court can decide without hearing your side, and the collector can win by default. You can’t stop a lawsuit by refusing to accept the papers.
2. Respond by the deadline in the papers. You may have to answer in writing, show up in court, or both. The papers tell you what to do, which court it is in, and the deadlines. You can respond yourself or through a lawyer.
3. Make the collector prove its case. It has to show that you owe the debt, that the amount is right (including interest and fees), and that it has the right to sue you. Check whether the debt is time-barred.
4. Gather your records: the validation notice, letters, payment records, and any dispute you sent.
5. Get legal help. If you have a low income, find a free legal aid office with the Legal Services Corporation. The FTC also points to LawHelp.org and the American Bar Association’s pro bono directory.

If the court rules against you, the FTC says the collector may be able to garnish your wages or bank account or put a lien on your property, and the judgment will likely show up on your credit report.

Report a debt collector

The FTC and CFPB say to report problems with a debt collector to all three of these:

• CFPB: consumerfinance.gov/complaint or (855) 411-2372. The CFPB forwards your complaint to the company and gives you a tracking number.
• FTC: ReportFraud.ftc.gov.
• Your state attorney general: find yours through the National Association of Attorneys General. The FTC notes many states have their own debt collection laws, and your attorney general’s office can help you understand them.

The FTC says you can also sue a collector that broke the law, generally within one year. Even if a court finds the collector broke the law, you may still owe the debt.

Template letters

The CFPB has its own sample letters too. Send letters to the mailing address on the collector’s notice, keep a copy, and consider certified mail with a return receipt.

[Your name]
[Your mailing address]
[Date]

[Debt collector's name]
[Debt collector's mailing address from the notice or letter]

Re: Account or reference number [number from their notice], [creditor name they listed]

I am writing about the debt you contacted me about on [date of first letter or call].

Please send me, in writing, verification of this debt, including:
- the name of the creditor to whom the debt is owed now;
- the name and address of the original creditor, if different;
- the account number used by the original creditor;
- an itemization of the amount you say I owe, showing interest, fees, payments, and credits;
- a copy of the document or record you are relying on that shows I owe this debt and the amount (for example, a statement or the signed agreement).

Until you have sent me this information, please stop collection activity on this debt, as required when a consumer requests verification within the validation period.

This letter is not an admission that I owe this debt.

Sincerely,
[Your name]

[Your name]
[Your mailing address]
[Date]

[Debt collector's name]
[Debt collector's mailing address from the notice or letter]

Re: Account or reference number [number from their notice], [creditor name they listed]

I dispute this debt. [Choose what applies:]
[ ] This is not my debt.
[ ] I already paid this debt. [Describe: date, amount, how paid. Enclose copies, not originals.]
[ ] The amount is wrong. [Explain what you think is wrong.]
[ ] I do not recognize this debt.

Please send me written verification of the debt, including the name and address of the original creditor and an itemization of the amount, and a copy of any record you rely on to show that I owe it.

Please stop collection activity on the disputed amount until you have sent me verification. If you report this debt to a credit reporting company, please report it as disputed.

This letter is not an admission that I owe this debt.

Sincerely,
[Your name]
Enclosures: [list any copies you are including]

[Your name]
[Your mailing address]
[Date]

[Debt collector's name]
[Debt collector's mailing address from the notice or letter]

Re: Account or reference number [number from their notice], [creditor name they listed]

I am asking you to stop all communication with me about this debt, by any method, including phone calls, letters, emails, text messages, and social media messages.

[Optional, choose one if it applies:]
[ ] I dispute this debt. [Send the dispute letter first or include it with this one.]
[ ] I am represented by an attorney: [attorney name, address, phone]. Contact my attorney, not me.

This letter is not an admission that I owe this debt.

Sincerely,
[Your name]

Calls about a relative who died? Family members usually don’t have to pay a relative’s debts from their own money. See debts after a death.