Dealing With Collection Letters Sent to You by Mistake

Posted May 9 2011 by Melinda Opperman in 

Many collection agencies cast a wide net when trying to collect on old debts. You may get a letter that was intended for someone else, perhaps someone with a similar name. It’s important to deal with this issue promptly.

Tips to Dealing with Mistaken Collection Efforts

  • Never pay a collection agency for a debt you don’t owe. It may sound strange, but it happens. Debt collectors are persistent, and sometimes consumers pay a debt that isn’t theirs just to make the collector go away. This is a bad idea.
  • Don’t give the collection agency any extra personally identifying info. The less they know about you, the better. If you’ve already gotten a collection letter that isn’t yours, then the debt collector is confused, and you shouldn’t add to the confusion by volunteering any additional info.
  • Check your credit report. Just to be safe order your free annual credit reports to make sure these debts haven’t been erroneously added to your credit record. If a debt that isn’t yours has been reported to your credit, download our free Consumer Guide to Good Credit for full instructions on correcting your credit report. If the false collection letter is the result of identity theft, check out our free Identity Theft Prevention course, right here in the FIT Academy.
  • If the debt referenced in the collection letter isn’t yours, and nothing incorrect has been reported to your credit report, you still should not ignore these collection letters. Write a brief letter to the collection agency informing them of their error. Send a copy of the letter to your State Attorney General, and include a copy of the original collection letter you received.
  • If the collector doesn’t budge and insists that the debt is yours, your next step is to write a debt validation letter. Check out the Consumer Guide to Good Credit for more information about this process.
  • If you determine that the debt is in fact valid, and you need help making regular payments toward it, contact one of our certified credit counselors for a free, confidential counseling session.

Final Thoughts

When dealing with debt collectors, you must respond promptly and dispute any debts that are not yours within 30 days of receiving their letter. If you ignore these collection letters, the collector may pursue legal action against you. You can prevent that by taking quick action to dispute any debts that are not legitimate.

Photo: mirvettium

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About the Author

Melinda OppermanMelinda Opperman is an exceptional educator who lives and breathes the creation and implementation of innovative ways to motivate and educate community members and students about financial literacy. Melinda joined the Springboard team in 2003 and has over 19 years experience in the industry. Learn more about Melinda.View all posts by Melinda Opperman →

  • TheChardo

    I received a letter from West Bay on 5.10.12 regarding
    $38.32 allegedly owed to Hollywood video. Unlike all or most of their other victims,  I have never done business with Hollywood Video nor had an account with
    them. In fact I have not rented any movies, other than through my cable TV
    account for at least the last decade. Please also note that while these charges
    go back to 2009, I have never before received a request for payment or had any
    indication that there was an outstanding debt in my name, although I’ve been at
    this same address all of that time.  I
    called them and discovered that although they had my correct name ( which is
    very common)and address, they had an erroneous year of birth and phone number.
    On the basis of this, they agreed to close the account. Nevertheless, known
    their history, I reported this to the  State of New Jersey , Attorney General office,
    Division of Consumer Affairs. They in turn referred me to the  Federal
    Trade Commission  which has
    jurisdiction in these matters. In addition, I sent a letter to West Bay by
    regular and certified  mail, with a copy
    to  First
    Lien Lenders Liquidating Trust demanding written confirmation that the
    matter is closed, or failing that, proof that I owe this debt,  which everyone is entitled to under the Fair
    Credit Reporting  Act.  Don’t take this crap from them! Protect
    yourself.

     

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