Paul Sanchez
If you receive a notice from a debt collector, it's important to respond as soon as possible, even if you don't think you owe the debt. If you ignore it, the collector may continue trying to collect the debt, report negative information to credit reporting companies, and even sue you.
If you get a summons notifying you that a debt collector is suing you, do not ignore it. If you do, the collector may be able to get a default judgment against you and garnish your wages and bank accounts. Make sure you respond by the date stated in the court papers so you can defend yourself in court. If you are sued, you may want to consult an attorney.
The law protects you from abusive, unfair, or deceptive debt collection practices. If you believe that a debt collector is trying to collect a debt that exceeds the amount permitted by the No Surprises Act, you should dispute the debt in writing by sending a letter to the collector as soon as possible. If you dispute the legitimacy of something in your debt collector's file, you must give the collector written notice. Send your dispute letter by certified mail with a return receipt, and keep a copy of the letter and receipt.
Debt collectors are regulated by the Texas Debt Collection Act, which prohibits them from using abusive collection tactics, such as threatening violence or other criminal acts, using profane or obscene language, or falsely accusing the consumer of fraud. Violators of the Texas Debt Collection Act are subject to criminal and civil penalties. If you think you have been harassed or deceived, you can seek injunctions and damages against debt collectors.
| Characteristics | Values |
|---|---|
| What to do when contacted by a debt collector | Never pay right away; ask the debt collector to send verification of the debt; file a dispute within 30 days; make sure the money owed is listed as medical debt; if the debt isn't verified, there's a mistake, your insurer has no record of the claim, you have a zero balance with the healthcare provider, the debt is expired, or you have other priority bills to pay, you might not need to pay the collector or the debt at all |
| What debt collectors can't do | Use abusive collection tactics, such as threatening violence, using profane or obscene language, falsely accusing the consumer of fraud, threatening arrest, repossession or seizure of property without court proceedings, harassing debtors by phone, making collect calls without disclosing the caller's name, using fraudulent collection tactics, trying to collect more than the amount originally agreed upon, taking your home or wages |
| What to do if you dispute a debt | Send the collector a written notice, preferably by certified mail with a "return receipt requested" so you know it was received; the collector then has 30 days to determine whether the disputed item is correct |
| What to do if you receive a summons from a debt collector | Do not ignore it; respond by the date stated in the court papers so you can defend yourself in court; if sued, consider consulting an attorney |
| How to stop a debt collector from contacting you | Mail a letter to the collection company and ask them to stop; keep a copy for yourself; send it by certified mail and pay for a "return receipt" so you have a record of them receiving it |
What You'll Learn
- Debt collectors must verify the debt and provide information about the collector and the bill being collected
- You can dispute a debt in writing within 30 days of being contacted
- Debt collectors cannot harass or abuse you
- Debt collectors cannot make false or misleading statements
- Debt collectors cannot call at unusual or inconvenient times or places
Debt collectors must verify the debt and provide information about the collector and the bill being collected
Debt collectors must provide you with certain information about your debt, known as validation or verification information. This information is usually provided in a written notice, either as the initial communication or within five days of their first contact with you. This notice is meant to help you identify whether you owe the debt and whether the collector's information about the debt is accurate.
The validation notice must include:
- A statement that the communication is from a debt collector
- Your name and address, along with the name and address of the debt collector
- The name of the creditor you owe the debt to (it is possible that more than one creditor will be listed)
- The account number associated with the debt (if any)
- An itemization of the current amount of the debt, including any interest, fees, payments, and credits
- Information about your debt collection rights, including how to dispute the debt and get information about the original creditor
- An end date for a 30-day period in which you can dispute the debt
If you don't recognize the debt or think it might not be yours, you can send a dispute letter to the debt collector within 30 days of receiving the validation notice. The collector must then stop collection activities until they can provide written verification of the debt, such as a copy of the original bill.
If you have already paid the bill that the debt collector is trying to collect, include that explanation in your dispute letter and send copies (not originals) of any relevant documentation, such as receipts or cancelled cheques.
If you don't dispute the debt within 30 days of receiving the validation notice, the debt collector will assume that the debt is legitimate.
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You can dispute a debt in writing within 30 days of being contacted
If you receive a notice from a debt collector, it's important to respond as soon as possible. If you don't, the collector may continue trying to collect the debt, report negative information to credit reporting companies, and even sue you.
Debt collectors are required by law to provide you with certain information about your debt, known as validation information. This information is usually provided in a written notice sent as the initial communication or within five days of their first contact with you. The validation notice should include:
- A statement that the communication is from a debt collector
- Your name and mailing information, along with the name and mailing information of the debt collector
- The name of the creditor you owe the debt to
- The account number associated with the debt (if any)
- An itemization of the current amount of the debt, including interest, fees, payments, and credits
- The current amount of the debt when the notice is provided
- Information on how to reply to the debt collector, such as if you believe the debt is not yours or if the amount is wrong
- An end date for a 30-day period when you can dispute the debt
If you believe that you don't owe the debt, the amount is incorrect, or that it's not your debt, you have the right to dispute it in writing within 30 days of receiving the validation notice. This can be done by sending a letter to the debt collector, and it's recommended to send it by certified mail with a return receipt so you have proof that the collector received it.
Once you've sent your dispute letter, the debt collector must stop all collection activities until they can verify the debt. They are required to respond to your dispute by providing validation of the debt, such as a copy of the original bill. If they are unable to verify the debt, they must correct the error and notify anyone who has received a report containing the incorrect information.
It's important to keep in mind that disputing a debt could work against you. If you genuinely owe the debt and are confident about the details, it may not be worth disputing it. Responding to the debt collector confirms your address, that you are aware of the debt, and that it is bothering you. Additionally, disputing a debt may prompt the collector to gather statements and documentation that could be used to file a lawsuit against you. Therefore, it's essential to carefully consider your specific situation before deciding to dispute a debt.
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Debt collectors cannot harass or abuse you
Debt collectors are governed by the Fair Debt Collection Practices Act (FDCPA), which prohibits them from harassing or abusing you. This means they:
- Cannot use obscene or profane language
- Cannot threaten or use violence
- Cannot falsely state or imply affiliation with the government
- Cannot contact you at work if you have told them you are not allowed to receive calls there
- Cannot contact your co-workers or friends about your debt
- Cannot repeatedly call your telephone or let it ring continually
- Cannot post about a debt that they claim you owe on social media
- Cannot call you at unusual or inconvenient times or places
- Cannot make false or misleading statements about the debt they are collecting
- Cannot lie about being an attorney or from the government
- Cannot falsely threaten you with actions they do not intend to take
- Cannot make repeated calls over a short period to annoy or harass you
- Cannot treat you unfairly, e.g. by trying to collect interest, fees, or other charges on top of the amount you owe, unless the original contract or a law says they can
If you believe a debt collector has violated the FDCPA, you can complain to law enforcement, including your state attorney general's office, the Federal Trade Commission, and the federal Consumer Financial Protection Bureau.
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Debt collectors cannot make false or misleading statements
Debt collectors are prohibited from making false or misleading statements. This includes:
- Falsely claiming to be attorneys or government representatives
- Implying that you have committed a crime by not paying a debt
- Misrepresenting the amount of debt owed
- Threatening to garnish or seize your wages, bank account, or property
- Sending documents that falsely appear to be from a court or other official agency
- Using a false name or identification
- Failing to identify who holds the debt
- Misrepresenting the nature of the services rendered by the collection agency or collector
If you believe a debt collector is using false or misleading statements to collect a debt, you can submit a complaint to the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC). You may also have the option to sue the collector in a state or federal court.
It is important to respond to any notices from debt collectors as soon as possible, even if you do not believe you owe the debt. If you ignore a summons, the collector may be able to get a default judgment against you and garnish your wages or bank accounts.
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Debt collectors cannot call at unusual or inconvenient times or places
Debt collectors are prohibited from calling at unusual or inconvenient times or places. This means they cannot call before 8 a.m. or after 9 p.m. local time, unless you agree to it. If a debt collector is aware that you work night shifts, for example, they should also refrain from calling between these hours.
Debt collectors are also not allowed to contact you at work if you've told them that you're not allowed to receive calls there. If you don't want to be contacted at a particular time or place, such as on weekends, you should inform the debt collector. They are required by law to follow your instructions.
If you don't want to receive any more calls from a debt collector, you can notify them in writing to stop contacting you. Once they receive your letter, they can only confirm that they will no longer contact you or notify you of specific plans, such as filing a lawsuit. However, consider keeping in contact with the collector as you may be able to arrange a payment plan or settle the debt for less than you owe.
If a debt collector is harassing you by repeatedly calling at unusual or inconvenient times, you can report them to the following government agencies:
- The Consumer Financial Protection Bureau (CFPB)
- The Federal Trade Commission (FTC)
- Your state attorney general's office
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Frequently asked questions
If a debt collector is trying to collect a debt that has been paid by your insurance, you should first ask the debt collector to verify the debt and provide you with information about the collection and the bill being collected. If the debt is yours and accurate, you can send the debt collector a dispute letter within 30 days, including copies of receipts, cancelled cheques, or other information showing that you have already paid the bill.
Debt collectors are regulated by laws such as the Fair Debt Collection Practices Act (FDCPA) and the Texas Debt Collection Act, which prohibit them from using abusive, unfair, or deceptive practices when collecting debts. If a debt collector is harassing you, you can report them to your state attorney general's office, the Federal Trade Commission, or the Consumer Financial Protection Bureau. You also have the option to sue the collector in a state or federal court.
Generally, a debt collector cannot discuss your debt with anyone but you or your spouse. If you have an attorney, the collector must contact them. A collection company can contact other people to find out your address, phone number, and place of work, but they can usually only contact them once and cannot disclose that you owe a debt.
If a debt collector is a scammer, they may use aggressive or abusive tactics, such as threatening violence or using profane language. They may also try to collect more money than you owe or contact you at unusual times or places. Be cautious if a debt collector asks for personal or financial information before sending you a validation notice, as this may be a scam.
