What to Do When a Debt Collector Contacts You

Getting a call or letter from a debt collector can be intimidating, but it's important to know that you have rights. The Fair Debt Collection Practices Act (FDCPA) is a federal law that dictates how and when debt collectors can contact you. Knowing what to do can protect you from harassment and help you resolve the situation effectively.

Step 1: Don't Panic and Don't Admit Anything

The first rule is to stay calm. Debt collectors can be persistent, but you are in control of the conversation. On the initial call, do not admit the debt is yours, agree to pay anything, or give out personal financial information like bank account numbers.

Simply say: "Thank you for the information. I need to receive all communication in writing. Please mail me information about this debt."

Step 2: Get It in Writing - The Debt Validation Letter

By law, a debt collector must send you a written "validation notice" within five days of first contacting you. This notice must include:

• The amount of the debt.
• The name of the creditor you owe.
• A statement that you have 30 days to dispute the validity of the debt.

If you don't receive this, or even if you do, your most powerful first move is to send your own **Debt Validation Letter** via certified mail. This formally requests that the collector prove you legally owe the debt and that they have the right to collect it.

Sending a debt validation letter forces the collector to pause all collection activities until they provide you with proof. This gives you valuable time and information.

Step 3: Understand Your Rights (The FDCPA)

The FDCPA protects you from abusive practices. A debt collector CANNOT:

• Call you before 8 a.m. or after 9 p.m.
• Contact you at work if you've told them you can't receive calls there.
• Use harassing, abusive, or profane language.
• Lie about the amount you owe or threaten you with jail time.
• Discuss your debt with third parties like family members or coworkers.

Step 4: Decide How to Respond

Once you have the debt validation information, you have a few options:

1. Dispute the Debt: If the debt isn't yours or the amount is wrong, you can file a dispute with both the collection agency and the credit bureaus.
2. Negotiate a Settlement: If the debt is valid, you can often negotiate to pay less than the full amount. This is where a pay-for-delete agreement can be useful.
3. Do Nothing (Use with Caution): If the debt is very old and past your state's statute of limitations, the collector cannot sue you for it. However, ignoring them won't make the debt go away and it can still harm your credit.

Feeling overwhelmed? The first and best step is to demand proof. Click the button in the footer to use our free Debt Validation Letter template.