Key reminders
Do not make any payment until the debt has been validated in writing. Do not provide your bank account details to someone who contacted you unexpectedly.
Receiving a call or letter from a debt collector can be stressful. However, there are clear steps you can take to protect yourself and understand your rights. The Fair Debt Collection Practices Act (FDCPA) gives US consumers significant protections. This page explains what to do and what not to do when a debt collector contacts you.
Ignoring a debt collector does not make the debt go away. Depending on the age of the debt and your state's statute of limitations on debt collection, the collector or debt buyer may still be able to sue you in civil court. If you ignore a lawsuit, a default judgment may be entered against you simply because you did not respond. A default judgment can give the creditor the legal right to garnish your wages (take money directly from your paycheck) or levy your bank account (freeze and seize funds). Taking the contact seriously and following the steps below is always preferable to hoping the situation disappears.
Under the FDCPA, a collector must send you a written validation notice within five days of their first contact. This notice must state the amount of the debt, identify the original creditor, and inform you of your right to dispute the debt. Once you receive this notice, you have 30 days to send a written request for verification. If you request verification within this window, the collector must stop all collection activity until they provide it. Send your request by certified mail and keep a copy. Do not wait to send it — the 30-day window runs from the date you receive the initial notice.
Before making any payment, confirm the collector is who they claim to be. Search the CFPB complaint database at consumerfinance.gov to see whether complaints have been filed against the company. Check your state attorney general's website for information about licensed collection agencies. Ask the collector in writing to provide their company's full legal name, mailing address and licence number. Legitimate collectors will provide this information without hesitation.
The FDCPA sets out a clear list of prohibited and required conduct. Collectors cannot call before 8am or after 9pm in your local time zone. They cannot use abusive, threatening or harassing language. They cannot make false statements about the debt, the amount owed, or their own identity or authority. They cannot threaten legal action they do not intend to take or cannot legally take. On the other side, collectors must identify themselves in every contact, provide debt information in writing on request, and honour a written cease communication request. Note that a cease communication request stops contact but does not eliminate the underlying debt or prevent a lawsuit.
Every state has a statute of limitations on debt, which is a period of time after which a creditor or collector generally cannot win a lawsuit in court to collect the debt. These time limits vary significantly by state and by the type of debt. A debt being time-barred does not mean it disappears from your credit report or that collectors must stop contacting you. It means their legal options in court are limited. Be aware that in some states, making even a partial payment on a time-barred debt, or making a written acknowledgment that you owe the debt, may restart the statute of limitations clock. If you believe a debt is time-barred, consider speaking with a legal aid attorney before taking any action.
Good records are essential when dealing with debt collectors. Keep a written log of every contact, including the date, time, name of the person who called, and a summary of what was said. Retain all written communications. If you send any letters, keep copies and consider sending them by certified mail with return receipt so you have proof of delivery. Your records may be important if you later need to file a complaint or if the matter goes to court.
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This page is general educational information only. It is not financial, legal, tax, credit or debt advice. Rules and regulations can change. Always verify current information with official sources before taking any action.