What can I do if a debt collector contacts me about a debt I already paid or don't think I owe? | Consumer Financial Protection Bureau (2024)

FAQs

What can I do if a debt collector contacts me about a debt I already paid or don't think I owe? | Consumer Financial Protection Bureau? ›

Once you receive the validation information or notice from the debt collector during or after your initial communication with them, you have 30 days to dispute all or part of the debt, if you don't believe that you owe it. If you receive a validation notice, the end date of the 30-day period will be specified.

For sample dispute letters, see the CFPB's "What should I do when a debt collector contacts me?" If you have already paid the bill that the debt collector is trying to collect, include that explanation in your letter and send copies (but not originals) of any receipts, canceled checks, or other information you have to ...

Even after you pay a collection account, it stays on your credit report for seven years. However, you can dispute collection accounts that are inaccurate. You may even be able to persuade a collection agency to remove the account once you've paid it.

Debt collectors are limited on when they can call you — typically, between 8 a.m. and 9 p.m. They are not allowed to call you at work. They can't lie or harass you. Debt collectors can't make you pay more than you owe or threaten you with arrest, jail time, property liens or wage garnishment if you don't pay.

Under the debt collection rule, debt collectors have to provide you with certain information about your debt, known as validation information.

If you've already paid the debt

If you're sure that you're talking with a legitimate debt collector, you can send copies of documents that prove you made the payments, including cancelled checks or credit card statements. You may also include copies of any correspondence about settling the debt.

If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.

2) What is the 609 loophole? The “609 loophole” is a misconception. Section 609 of the Fair Credit Reporting Act (FCRA) allows consumers to request their credit file information. It does not guarantee the removal of negative items but requires credit bureaus to verify the accuracy of disputed information.

Successfully disputing inaccurate information is the only surefire way to get collections removed from your credit report. If you've repaid a debt and the collection account remains on your credit report, you can request a goodwill deletion from your creditor, though there's no guarantee they'll grant your request.

If the creditor sold the debt to a collection agency, you can't negotiate or pay the original creditor. Because the original creditor no longer owns the debt, paying that company wouldn't satisfy the debt you now owe the collector.

Why should you never pay a debt collector? ›

Paying an old collection debt can actually lower your credit score temporarily. That's because it re-ages the account, making it more recent again. This can hurt more than help in the short term. Even after it's paid, the negative status of “paid collection” will continue damaging your score for years.

The Fair Debt Collection Practices Act says debt collectors can't harass, oppress, or abuse you or anyone else they contact. For example, debt collectors can't: Make repeated phone calls that are intended to annoy, abuse, or harass you or any person answering the phone. Use obscene or profane language.

What is a “drop dead” letter? A “drop dead” letter is written notification from you to any collection agencies that are harassing you. It informs the agencies that you're aware of your rights under FDCPA and that you're requesting they stop contacting you about a given debt — effective immediately!

Under the FDCPA, a debt collector may not call any person repeatedly or continuously with the intent to annoy, abuse, or harass them.

Yes. If a debt collector is trying to collect more than one debt from you, the collector must apply any payment you make to the debt you choose. A debt collector can't apply a payment to a debt you say you don't owe.