Key takeaways
- Federal law limits when and how often a collector can contact you, and what they can say.
- Ask for the collector’s details, and don’t confirm the debt or pay anything until you get written information about it.
- You have 30 days to dispute the debt in writing after you get that information.
- You can tell a collector in writing to stop contacting you.
- Never ignore a lawsuit. Respond by the date in the court papers.
If a debt collector has called you, take a breath. You’re not in trouble for answering, and you don’t have to settle anything on that first call. The most useful thing you can do today is get the collector’s details and ask for the debt information in writing.
Debt collectors have to follow the federal Fair Debt Collection Practices Act and the CFPB’s rules that go with it. Those rules give you real protections.
Step 1: Get the basics before you say much
On the first call, write down:
- The collector’s name and the company name.
- The company’s mailing address and phone number.
- The amount they say you owe.
- The name of the original creditor.
You don’t have to agree that you owe the debt. It is fine to say: “Please send me the information about this debt in writing.” Don’t give out bank account or card numbers on a call you didn’t expect.
Step 2: Read the validation notice
The collector has to give you key information about the debt, either in the first contact or within five days of it, according to the FTC. This is often called a validation notice. It should show who the creditor is, how much you owe and how to dispute the debt.
Check it against your own records. Is the amount right? Is it actually your debt? Could it be an old debt you already paid?
Step 3: Dispute it if something is wrong
If you don’t recognize the debt, or the amount looks wrong, send a dispute letter. The FTC says to send it within 30 days of getting the validation information. Once you dispute in writing, the collector has to stop collecting until it sends you proof of the debt.
The CFPB has sample letters you can use. Send yours by certified mail and keep a copy.
What collectors can’t do
Under federal law, a debt collector can’t:
- Call you before 8 a.m. or after 9 p.m. your local time, unless you agree.
- Call you more than seven times within seven days about a particular debt, or within seven days after talking to you on the phone about it, according to the CFPB.
- Threaten to hurt you, or use obscene or profane language.
- Lie about the amount you owe.
- Pretend to be a lawyer or someone from the government.
- Threaten to have you arrested.
How to make the calls stop
You have the right to tell a debt collector to stop contacting you. Do it in a letter. After the collector receives it, the FTC explains that it can only contact you to confirm it will stop, or to tell you it plans a specific action, like filing a lawsuit.
Keep in mind that stopping the calls doesn’t erase the debt. The collector or creditor may still sue you, and the debt can still show up on your credit report.
Old debts: check the time limit first
Every state has a time limit, called a statute of limitations, for suing over a debt. If a debt is past that limit, it is called time-barred, and it’s against the law for a collector to sue you over it.
Be careful before paying anything on an old debt. The CFPB suggests checking the time limit in your state first, because in some states a payment can affect it. A legal aid office or an attorney can tell you how your state’s rules work.
If you get sued
Don’t ignore court papers. Respond by the date listed in them, even if you think you don’t owe the money. If you don’t respond, the court can rule against you, and the collector may be able to garnish your wages or bank account. Free help may be available from a local legal aid office.
What to avoid
- Paying on the first call before you’ve seen anything in writing.
- Giving account numbers to someone you can’t verify. Scammers pose as collectors.
- Ignoring letters. Deadlines for disputes and lawsuits are real.
- “Debt relief” companies that promise to stop all calls and lawsuits. No one can promise that. Read debt settlement vs. debt consolidation for what these programs really involve.
Where to get free help
- The CFPB’s debt collection pages, with sample letters and answers to common questions: consumerfinance.gov/consumer-tools/debt-collection.
- Submit a complaint to the CFPB or your state attorney general if a collector breaks the rules.
- A nonprofit credit counselor through the NFCC can help you plan which debts to pay first.
- Local legal aid if you’ve been sued.
If money is tight while you sort this out, our bare-bones budget guide can help you protect essentials first. And if you’re worried about your credit, see how debt relief affects your credit score.
Sources: FTC: debt collection FAQs · CFPB: debt collection · CFPB: when and how often can a debt collector call me · CFPB: know your rights when a debt collector calls