No one likes dealing with debt collectors, but this is even more true when you don’t think you owe anyone any money. Debt collectors can wrongly contact someone for a lot of reasons including having bad contact information, a debt validation letter, or a disputed debt. Here’s how to handle a debt collector if you don’t think you owe what they’re asking for.
What to Do If a Debt Collector Contacts You About a Debt You Don’t Owe
Find Out If They’re Really Looking for You
You might assume that if a debt collector calls you, they’re trying to collect money from you, but a good number of debt collector calls are because they have the wrong person. This could be because you don’t pick up when you see strange numbers calling your phone and especially when they call repeatedly while never leaving messages. You might even look up the number and see that it’s from a debt collector and decide to keep ignoring the calls.
Next time they call, pick up the phone. Debt collectors won’t leave messages because they’re not supposed to tell third parties about another person’s debt, but they will keep calling until someone answers. You may find that they have the wrong number entirely — this often happens when your new number belonged to someone trying to dodge them — and can end the calls with a simple, “I’m sorry, you have the wrong number.”
Other times they might have been trying to look up someone with a similar name. No matter what the reason, they won’t waste their time continuing to call if they find out you aren’t who they’re trying to reach.
Find Out If They Think They Have Proof You Owe Money
Within a few days of beginning collection actions, debt collectors are supposed to send you a debt validation notice stating that you owe a debt, how much is owed, who the original creditor was, and who currently owns the debt (debt collectors usually buy debt from the original creditor). Often, they won’t send this notice. This is sometimes because they don’t actually have proof of the debt, but there’s no need to speculate on why a notice wasn’t sent.
You have an absolute right to receive a debt validation notice, and if a debt collector contacts you, you should ask them to send it. Follow up with a written letter sent by certified mail with return receipt requested.
This is commonly called a “debt validation letter,” but all it is is a letter saying to provide you the information required by Section 1692g of Title 15 of the United States Code. If the creditor doesn’t respond within 30 days, they can take no further action to collect the debt and you have the right to have any collection they had listed on your credit report removed.
Note: You need to request validation within 30 days of when you were first contacted or the creditor has a right to assume the debt is valid.
What If the Creditor “Validated” a Debt You Don’t Owe?
Validation in this context does not mean that they must meet the same standard of proof as in a court case. It only means that there is a paper trail showing that, according to the original creditor, you owe a debt in that amount.
If you are disputing a debt because of services not received, because you believe you were overcharged, or on other grounds, the debt collector is not required to cease collection efforts as long as the required information stated above is verified and provided to you.
So what happens next? You may be able to provide proof to the creditor that you didn’t owe the money and convince them to drop the claim. Filing a complaint to the Better Business Bureau is sometimes enough to resolve the situation.
If those steps don’t work, you may end up in court. The creditor might sue you for the debt, and you can then present your defense. If you are harmed in some other way, such as by having your credit score damaged, you may also be able to sue the creditor to reverse any adverse actions.
Contact a debtor-credit attorney for assistance.
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A creditor only has the right to collect a fee when they provide proof that you signed an agreement or contract agreeing to pay back money borrowed from them.
False debt collectors take advantage of many innocent people by tricking them into believing they must pay their debts when in fact no such contract exists between both parties.
Contacting your original creditor is important because it will help alleviate any residual doubt about if you really owe money or not. By doing so, it is likely that your creditor will be able to verify that this false debt collector is just trying to scam you.
False debt collectors are violating the law by trying to get back money that they do not owe. Debt collectors are required to give you verification of the debt, who it is owed to, and how much is due each time they contact you for payment or try to collect a debt. If you decide that the debt collector may be taking advantage of you, then there are certain steps that should be taken in order to fight back.
The first thing to do when encountering a false debt collector is contact the company the false debt collector says is the original creditor. They may help you figure out if the debt is legitimate and if this false collector has the right to collect the money. Also, get your free credit report annually online or at 877-322-8228 and make sure the debt does not show up there. Finally, in writing, dispute the debt with this false collector and inform them that you do not owe the money and wish for them to stop contacting you.
If you receive a call from a debt collector who is trying to collect from you for an amount that you know is incorrect, tell the caller that they have collected from the wrong person. They may then be able to close your account and stop contacting you.
If they refuse, make sure to maintain records of this phone call and how it progressed. You can also send them written correspondence confirming your claim, including copies of any supporting documentation such as bank statements or receipts for purchases made with the credit card number in question.