Key takeaways
- A collector must send you a validation notice with key details about the debt, either in the first contact or within five days.
- You have about 30 days, with an end date shown on the notice, to dispute the debt in writing.
- If you dispute in writing within that period, the collector must pause collecting the disputed amount until it responds.
- Send your letter by certified mail, keep a copy, and don’t pay until you’re sure the debt is yours.
A debt collector says you owe money, but you don’t recognize the debt, or the amount seems too high. You don’t have to take their word for it. Federal rules let you ask the collector to back up the debt, and they have to pause collecting while they do. Here’s how it works.
Step 1: Look for the validation notice
Under the CFPB’s debt collection rules, a collector must give you a validation notice. According to the CFPB, it must come in the collector’s first communication with you or within five days after it, by mail or electronically.
The notice must include:
- A statement that the communication is from a debt collector.
- The name and mailing information of the collector and of you.
- The name of the creditor you owe the debt to, and the account number if there is one.
- An itemization of the current amount: interest, fees, payments and credits since a particular date.
- The current amount of the debt.
- Information you can use to reply.
- An end date for a 30-day period when you can dispute the debt.
If you never got a notice, ask the collector to send it before you discuss anything else.
Step 2: Check it against your records
Ask yourself:
- Is this my debt? Do I recognize the original creditor?
- Is the amount right? Do the fees and interest make sense?
- Did I already pay or settle this?
- Is it very old? If so, read about time-barred debt before paying anything.
- Is it a medical bill? Check it against your insurance and see medical debt in collections.
Step 3: Send a dispute letter within the dispute period
If anything is wrong or you’re not sure, send a written dispute before the end date on the notice. You can ask the collector to verify the debt and to give you the name and address of the original creditor.
The CFPB explains that if you send a written request within the 30-day period, the collector must pause collecting the amount you dispute until it has adequately responded.
What to put in your letter
- Your name and address, and any reference number from the notice.
- A clear statement: “I dispute this debt” or “I dispute the amount.”
- A request for verification: the name of the original creditor, the amount, and how the amount was calculated.
- If you want, a request that the collector contact you only in writing.
Don’t include your Social Security number, bank account numbers or a copy of your ID. The CFPB has sample letters you can adapt.
How to send it
Send it by certified mail with a return receipt, or through the collector’s online dispute option if the notice lists one, and save proof. Keep a copy of everything.
Step 4: Watch what happens next
- The collector sends verification. Review it carefully. If it still looks wrong, you can write again or get help.
- The collector doesn’t respond. It shouldn’t keep collecting the disputed amount. Keep records of any contact.
- The collector keeps pushing without responding. That may break the rules. You can submit a complaint to the CFPB or your state attorney general.
What if you missed the dispute period?
You can still dispute a debt after the period ends. The collector just isn’t required to pause collection in the same way. It’s still worth asking for proof in writing, especially before you pay.
What to avoid
- Paying before you’ve checked. A payment can be hard to get back, and with very old debts it can have legal effects in some states.
- Admitting the debt on the phone if you aren’t sure it’s yours.
- Ignoring a lawsuit. A dispute letter doesn’t stop a court case. If you’re sued, respond by the date in the court papers.
- Giving personal details to unverified callers. Some “collectors” are scammers.
Where to get free help
- The CFPB’s debt collection pages have sample letters and answers to common questions.
- The FTC’s debt collection FAQs explain your rights.
- A local legal aid office can help if you’re sued.
For the full picture of what collectors can and can’t do, read your rights when a debt collector calls. If the debt is real and you need a plan to pay it, our bare-bones budget guide is a good place to start.
Sources: CFPB: what information a debt collector has to give you · CFPB: debt collection · FTC: debt collection FAQs