Getting a call from a debt collector can feel overwhelming, but don’t panic. It’s important to stay calm, listen carefully, and gather all the information before you take any action. Your first step is to make sure the call is legitimate and to understand your rights under federal law.
When you speak to a debt collector, keep your responses short and factual. You do not need to admit to owing the debt, make a payment, or agree to anything during the first conversation. Instead, ask for the following:
Never give out personal or financial information like your Social Security number, bank account details, or credit card numbers. Scammers often pose as collectors to get this information.
The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects consumers from abusive or deceptive tactics. Under this law, debt collectors cannot:
You have the right to request that a debt collector stop contacting you. If you choose to do this, send a letter by registered mail and keep a copy for your records.
By law, collectors must send you a validation notice within five days of first contacting you. This letter must include:
If you don’t receive this notice, that’s a red flag. Do not pay anything until you get this letter and verify its contents.
To learn more about these letters, visit Credit.org’s article on what are debt validation letters.
If you believe the debt is not yours, or you’ve already paid it, you can send a dispute letter. You must do this within 30 days of receiving the validation. Your letter should include:
Once you send the letter, the collector must stop trying to collect until they’ve provided verification.
Debt collection calls must follow strict rules. A collector can only call you at reasonable hours and must identify themselves as a debt collector. They can’t:
If a debt collector calls you in a way that violates these rules, you may have a case against them under federal or state laws.
You can read more about this in Credit.org’s guide to protecting yourself from debt-shaming collection tactics.
In addition to federal protections, your state may have its own debt collection laws. These laws could offer stronger consumer rights, such as:
You can find a state-by-state summary of laws from trusted legal resources like Justia.
While it’s tempting to avoid answering, ignoring a debt collector won’t make the problem go away. If you do not respond, the collector may:
Instead, respond calmly and ask for everything in writing. This gives you time to review the situation and prepare your next steps.
Some debts are so old they’re considered time-barred, meaning the collector can’t sue you to collect. However, if you make a payment or admit the debt is yours, you might restart the statute of limitations.
Always ask:
If you’re unsure, talk to a nonprofit credit counselor before taking any action. Read our Complete Guide to the Statute of Limitations on Debt to learn more.
After hearing from a debt collector, it’s a good idea to check your credit reports. You want to see if the debt has been reported and whether the details are accurate. You’re entitled to a free report every 12 months from each of the three major credit reporting agencies at AnnualCreditReport.com.
Look for:
If you spot errors, you can file a dispute directly with the credit reporting agency and include supporting documents. Learn more about how to do this in Credit.org’s article on dealing with collection letters sent to you by mistake.
Debt collection agencies are not allowed to make threats or use pressure tactics. They must follow both federal and state laws when trying to collect debts. If they break the rules, you can report them to the Consumer Financial Protection Bureau or your state attorney general.
Common violations include:
If you experience any of these, document everything. Keep copies of letters, take screenshots of messages, and write down the date and time of each call.
Once an account is sent to collections, it may appear on your credit report. This can lower your credit score and make it harder to qualify for loans or low interest rates. Accounts in collections can stay on your report for up to seven years from the date of the original delinquency.
However, if the debt is paid or settled, it may still be updated as “paid collection,” which could help reduce the damage over time. Some newer credit scoring models give less weight to paid collections, especially for medical bills.
Before paying anything, confirm the details. Ask the collector for:
Once verified, you can decide whether to:
If you decide to pay, request a written agreement that outlines the terms, including any promises to update your credit report. Never send money without getting this agreement in writing.
You can also explore the pros and cons of paying credit card debt to make a more informed decision.
Debt collectors may ask for your bank account information to set up a payment. Be cautious. Giving them direct access puts you at risk of unauthorized withdrawals.
A safer option is to:
Always keep records of every payment, including return receipts or confirmations.
When communicating with debt collectors, it’s smart to send letters by registered mail with a return receipt. This proves that the collector received your request. You might use this method for:
Keep a copy of each letter for your records. Having proof is essential in case the collector takes legal action or violates your rights.
Some collectors may mislead you by claiming you owe more than you do, threatening lawsuits, or pretending to be law enforcement. These practices are illegal. If you suspect this is happening, don’t ignore it; report the activity and consider speaking to a legal expert or nonprofit counselor.
For a deeper look into federal protections, see Credit.org’s article on the state of the Fair Debt Collection Practices Act.
Collectors can only contact other people—like family, friends, or coworkers—to get your contact information. They cannot tell anyone about your debt or try to collect from them. If this happens, it’s a violation of your privacy rights.
You can send a written letter requesting they stop contacting third parties. Again, use certified mail and keep a copy.
Mistakes happen. Sometimes collectors pursue the wrong person, the wrong amount, or debts that were already settled. If the amount seems off, request:
You have the right to challenge incorrect amounts and demand validation before making any payments.
When dealing with a debt collector, it’s essential to document everything. Good recordkeeping helps you stay organized and protects you if the situation escalates.
Write down:
Save voicemails, text messages, emails, and all written correspondence. If the collector breaks the law or misleads you, your records can serve as important evidence.
If you no longer want to receive calls or letters from a debt collector, you have the right to request that they stop contacting you. This is known as a “cease communication” letter. Once they receive your written request, they can only contact you to confirm they won’t reach out again or to notify you of a lawsuit.
To send this letter:
While this stops the calls, it doesn’t erase the debt. The collector may still pursue other actions, like a lawsuit, so be prepared and continue monitoring your credit.
Harassment is not allowed. If a debt collector uses threatening language, yells at you, or keeps calling after you’ve asked them to stop, they are breaking the law. You do not have to tolerate this behavior.
Examples of illegal harassment include:
You can report this behavior to the Federal Trade Commission or the Consumer Financial Protection Bureau. Your state attorney general may also take action against abusive collectors.
If you’ve already paid the debt, keep proof of that payment. This could include a bank statement, canceled check, or receipt. If a collector still contacts you about it, send them a letter stating that the debt has been paid and include copies of your proof.
You can also send a copy to the credit reporting agency if the account appears incorrectly on your report. They are required to investigate and correct any errors.
A debt collector cannot access your bank account unless:
If you’ve never agreed to automatic payments, and they haven’t sued you, they cannot legally withdraw funds. If they do, contact your bank right away and file a complaint.
To protect your bank account, avoid sharing your routing and account numbers, especially over the phone. If you must make a payment, consider using a one-time method like a money order.
Debt from credit cards is one of the most common types sent to collections. If you fall behind on payments, the credit card company may sell your debt to a third-party agency. That agency then contacts you to collect the money.
Even small unpaid balances can lead to collection activity, especially if interest and fees pile up. To avoid this:
Early action is the best way to keep credit cards from spiraling into a more serious issue.
There are many resources available to help you understand your rights and options. Start with:
These sites provide tools and information that can help you respond wisely and confidently to debt collector calls.
In some situations, you may receive a private message or call from third party debt collectors asking for location information or trying to contact other people about your debt. These practices are limited under federal law and may violate your legal rights. If a debt collector sues you, be sure to respond to any court papers and never ignore the notice. Ask for validation information to check for false information or misreported balances. You can also request a sample letter or written agreement to clarify the terms. Whether you're managing debt, negotiating a partial payment, or disputing collect interest fees, protect your financial future by keeping records and understanding your rights under the Fair Debt Collection Practices Act.
If you're feeling overwhelmed by debt, you're not alone and you don't have to face it without support. Credit.org's certified nonprofit counselors are here to help you:
Whether you're struggling with credit card debt, receiving collection calls, or just need advice about your finances, we can help you move forward with confidence. Get started with a free credit counseling session and explore our full range of debt counseling services. If your situation involves homeownership or housing issues, we also offer foreclosure prevention support.
