What should I do when a debt collector contacts me? | Consumer Financial Protection Bureau (2024)

FAQs

What is a creditor legally required to do if you dispute a debt? ›

If you choose to dispute the debt, you must do so in writing within 30 days of receiving the debt validation letter. Once the debt collector receives your written dispute, they must cease all collection activities until they provide verification of the debt.

Within five days after a debt collector first contacts you, it must send you a written notice, called a "validation notice," that tells you (1) the amount it thinks you owe, (2) the name of the creditor, and (3) how to dispute the debt in writing.

One of the most rigorous rules in their favor is the 7-in-7 rule. This rule states that a creditor must not contact the person who owes them money more than seven times within a 7-day period. Also, they must not contact the individual within seven days after engaging in a phone conversation about a particular 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.

It is usually worth the effort to dispute the debt. At the very least, it will buy you some time. Best case scenario: you find out you do not owe the debt at all!

You have the right to tell a debt collector to stop contacting you. If you ask a debt collector to stop all contact – regardless of the communications channel – the collector must stop. Keep in mind, though, that you could still owe the debt.

Can debt collectors sue you? Typically, debt collectors will only pursue legal action when the amount owed is in excess of $5,000, but they can sue for less. “If they do sue, you need to show up at court,” says Lewis-Parks.

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.

How can I scare off debt collectors? ›

The legal loophole is the debtor has no right in law to know or enquire who ownes the debt which then makes the contractural relationship no longer transparent.

Challenging the debt: You have a right to dispute the debt. If you challenge the debt within 30 days of first contact, the collector cannot ask for payment until the dispute is settled. After 30 days you can still challenge the debt, but the collector can seek payment while the dispute is being investigated.

If you don't want to receive calls from a debt collector at a particular time or place, such as on the weekends or at work, you should tell the debt collector. If they're aware you don't want or are not allowed to receive personal calls at work, for example, they're not allowed to contact you there.

What happens if the creditor does not respond within the required time? If the creditor does not respond within 30 days, TransUnion will delete the information from your credit report.

If your customer disputes a debt with you, you should try to resolve it as soon as possible. Sometimes, this can be as simple as a gentle reminder about the payment and a discussion about the debt. You must also take the dispute seriously and respect that it may be genuine.

How Long Will the Dispute Process Take? The FCRA requires the national credit bureaus to complete dispute investigations within 30 to 45 days, as follows: 30 days: Credit bureaus (referred to in the FCRA as credit reporting companies) must investigate and resolve disputes within 30 days of receiving them.

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.