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If a debt collector calls, do you know what to do? You have rights. Debt collectors can’t harass, lie, or treat you unfairly — even if you owe the debt. Before you pay, confirm a debt is actually yours — not someone else’s or a scam to get your money. Consider talking to the collector at least once to find out, even if you don’t think you owe the money. To help you avoid a scam, here’s what to do next.

Ask for “validation information” about the debt, which the collector has to give you, either when they first communicate with you or within five days of the first contact. That information includes: the collector’s name, the name of the creditor, the name and mailing address they have on file for the person they say owes the debt, how much money they claim you owe (including interest, fees, payments and credits), and your debt collection rights.

Then review the validation information. Is it your debt?

  • If no, or you don’t recognize the debt, send the debt collector a dispute letter within 30 days. Say you don’t owe some or all of the money. Ask for a written verification of the debt, like a copy of the original bill for the amount you owe.
  • If yes, consider your options. See if you’re able to enroll in a payment plan. If you’re unable to pay the full amount, you may be able to settle the debt for a lower, negotiated amount, though paying less than you owe could negatively affect your credit score.

Whatever you do, don’t ignore debt that might be yours. If you don’t pay, a debt collector might report your debt to a credit reporting agency, which can hurt your credit. They also may be able to sue you in court or garnish your wages.

Spot a fake or abusive debt collector? Report it to your state attorney general’s office and the Federal Trade Commission.

 

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