That's why we provide features like your Approval Odds and savings estimates. Of course, the offers on our platform don't represent all financial products out there, but our goal is to show you as many great options as we can. Knowing your rights can be empowering. It can give you the info you need — and a boost of confidence — to deal with any legitimate debt you have in collections.
The first thing you should do when a debt collector contacts you — before even considering a payment — is to make sure that the debt collector and the debt are legitimate.
The FDCPA states that debt collectors must provide the following information in writing within five days of first contacting you:.
Under the FDCPA, debt collectors are required to identify themselves when they attempt to collect a debt as well as note that any information you give them will be used in an attempt to collect the debt.
They also must give you the name of their company or agency. Legitimate collectors should be able to give you a business address and contact information, too. Debt collectors are limited in what they can say or ask about you to other people.
That information is typically limited to …. You should dispute anything you think may be inaccurate right away — after 30 days, the debt collector can legally attempt to collect the debt. But if you dispute the debt, the debt collector is legally obligated to verify the debt before proceeding with any collections action.
Even though you have protections under the FDCPA, debt collectors are still allowed to ask you to repay your legitimate debts. As you navigate this process, there are some important things to consider.
Items like a past due account or late payment will have a negative impact on your credit history. The Fair Credit Reporting Act lets all Americans check each of their three credit reports at least once a year for free. Ignoring or avoiding a debt collector is unlikely to make the debt collector stop contacting you. If you believe you do not owe the debt, you should tell the debt collector.
You can also ask the debt collector in writing to stop contacting you, which will stop the communications. We have prepared sample letters that a consumer could use to respond to a debt collector who is trying to collect a debt along with tips on how to use them. The sample letters may help you to get information, stop or limit any further communication, or protect some of your rights. You might also consider consulting a credit counselor. Credit counselors are organizations that can advise you on managing your money and debts, help you develop a budget, and usually offer free educational materials and workshops.
But telling collectors that you can't pay, and giving them a short explanation of your financial difficulties, might lead them to move on to other consumers. It might also prevent your file from being referred to litigation.
But be sure not to admit that you owe the debt or say anything that might restart an expired statute of limitations. Depending on your state, you might restart the statute of limitations if you make a partial payment on a debt or otherwise acknowledge that you owe a debt that you haven't been paying.
A new promise to pay a debt might also revive the statute of limitations in some circumstances. Your instinct might be to hide from collectors by changing your phone number or refusing to provide your address. But hiding your whereabouts won't prevent a collector from trying to collect—it just will mean they might send letters and make calls to others that they think might know where you are or who they think are you.
Collectors who don't know your location have a lot more legal leeway to contact employers or friends to ask for information about you, like for your address.
But if the collector has your location information, then talking to employers or friends is illegal. While some collectors might say they want information about your income to qualify you for a lower payment amount, you should never provide your personal financial information, including your:.
This information might be used to collect from you through a wage garnishment , bank levy, or property lien if the creditor or collector gets a judgment against you. Often, a debt collector will ask for you to voluntarily make a minimal payment, not under a settlement agreement. The collector might say that the payment shows you're acting in "good faith.
Not true. What this small payment will do is extend the statute of limitations. In most states, the statute of limitations clock starts ticking from the date you made the last payment. Every new payment, no matter how small, could restart the limitations period. Even if it's clear you owe the money, you should refrain from making any statements such as "I know I owe this and will pay you as soon as I can" or "I can start paying you next month. Any promise you make to make a payment could be interpreted as a separate contract, renewing the statute of limitations for the debt.
Using profanity, screaming, or getting hostile, won't help you. If call records are needed for a court action, it will hurt you if you're the one who's abusive and not the collector. Also, if you lose your cool, you might accidentally provide the collector with information that you didn't mean to divulge. If you need help dealing with an aggressive debt collector, figuring out what option is best for handling your debts, negotiating a settlement, or responding to a lawsuit for nonpayment of a debt, consider consulting with a lawyer.
Once you've hired a lawyer, under the FDCPA, a collector must talk to your attorney only—not you—unless you give permission to contact you or your lawyer doesn't respond to the collection agency's communications.
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Please reference the Terms of Use and the Supplemental Terms for specific information related to your state. Grow Your Legal Practice. Meet the Editors. You Might Get Sued After the Statute of Limitations Period Expires Just because the statute of limitations has expired doesn't mean a creditor or collector won't sue you. Decide If You Want to Talk to the Collector If a debt collector contacts you, consider ignoring the calls or not responding to other communication methods—at least until you learn about your rights, find out if the debt is truly yours , whether you want to file for bankruptcy, and learn whether the statute of limitations has expired.
If You Decide to Talk to the Collector, Keep a Record A collections log is a written record that you make of the date and time that a collector calls, the person you speak with, and what the collector says to you. Give the Collector Your Current Address Your instinct might be to hide from collectors by changing your phone number or refusing to provide your address.
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