What should I do when a debt collector contacts me? | Consumer Financial Protection Bureau (2024)

FAQs

What should I do when a debt collector contacts me? | Consumer Financial Protection Bureau? ›

If you believe the debt being collected is inaccurate, you have 30 days from the date you're first contacted by a debt collector to dispute the debt in writing. You should dispute anything you think may be inaccurate right away — after 30 days, the debt collector can legally attempt to collect the debt.

If you receive a notice from a debt collector, it's important to respond as soon as possible—even if you do not owe the debt—because otherwise the collector may continue trying to collect the debt, report negative information to credit reporting companies, and even sue you.

A debt collector must stop all collection activity on a debt if you send them a written dispute about the debt, generally within 30 days after your initial communication with them. Collection activities can restart, though, after the debt collector sends verification responding to the dispute.

Don't provide personal or sensitive financial information

Never give out or confirm personal or sensitive financial information – such as your bank account, credit card, or full Social Security number – unless you know the company or person you are talking with is a real debt collector.

If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.

Paying an old collection debt can actually lower your credit score temporarily. That's because it re-ages the account, making it more recent again. This can hurt more than help in the short term. Even after it's paid, the negative status of “paid collection” will continue damaging your score for years.

Even if you owe money, debt collectors aren't allowed to threaten, harass, or publicly shame you. You have the right to order a debt collector to stop contacting you, and they must comply. If there's a mistake, and you really don't owe the debt, you can take steps to remedy the error.

You can sue the debt collector for violating the FDCPA. If you sue under the FDCPA and win, the debt collector must generally pay your attorney's fees and might also have to pay you damages. If you're having trouble with debt collection, you can submit a complaint with the CFPB.

What is the loophole of debt collection? ›

Debt collectors lose the right in many states to sue consumers after three or more years. But there's a loophole: If the consumer makes a payment, even against his or her own will, that can be used to try to revive the life of the debt.

Contrary to what some might think, section 609 does not require credit bureaus to provide proof of your accounts. The FCRA gives you the right to dispute information you believe to be unfair, inaccurate or unsubstantiated.

What if the debt collector never sent me written notice of the debt? You can still assert your dispute and verification rights. The 30 day time limit will not apply.

You can report a debt collector's failure to respond to your state's attorney general, the Consumer Financial Protection Bureau (CFPB), or the FTC. You may also file a counterclaim against the debt collector for up to $1,000 for each violation.

How Long Can You Ignore Debt Collections? While it's not wise to ignore a debt collector, you might be able to put them off long enough so that you don't end up in court. A debt collector has a certain period of time (typically three to six years) to file a lawsuit against you to collect the money you owe.

When it comes to debt collection calls, it is never clever to ignore them. In fact, it may make things a lot worse for you. The debt collector may file a collections lawsuit in court, which could lead to the garnishing of wages, seizure of personal property, or money taken from your bank accounts.