How to respond when a debt collector contacts you in three easy steps | Consumer Financial Protection Bureau (2024)

FAQs

How to respond when a debt collector contacts you in three easy steps | Consumer Financial Protection Bureau? ›

Act quickly

Send a Cease-and-Desist Letter

If you want a debt collector to stop contacting you, the FDCPA gives you the right to make that happen. Putting your request in writing, via a cease-and-desist letter, is an easy and effective option to stop the communication.

I am writing this letter to bring to your notice the following information added to my credit report. The [dispute item] along with the [creditor's name] are falsely added to my credit report without my prior knowledge. The mentioned details are incorrect and I request you to revise the report after due diligence.

Even if you owe money, debt collectors aren't allowed to threaten, harass, or publicly shame you. You have the right to order a debt collector to stop contacting you, and they must comply. If there's a mistake, and you really don't owe the debt, you can take steps to remedy the error.

Tell Them to Take a Hike

Under federal law you have the right to ask a debt collector to stop contacting you. It's best to put this request in writing, either by mail or by fax. “They can still sue if they want,” warns Howard.

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.

What are the 5 things debt collectors are forbidden to do? ›

Debt collectors cannot harass or abuse you. They cannot swear, threaten to illegally harm you or your property, threaten you with illegal actions, or falsely threaten you with actions they do not intend to take. They also cannot make repeated calls over a short period to annoy or harass you.

A collection account can significantly damage your credit score, but the impact lessens over time. Paying off a collection might not immediately improve your credit score, but some newer credit scoring models give less weight to paid collections.

Debt collectors don't want you to know that you can make them stop calling, they can't do most of what they tell you, payment deadlines are phony, threats are inflated, and they can't find out how much you have in the bank. Furthermore, if you're out of state, they may have no legal recourse to collect.

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 may still owe the debt. If you don't want a debt collector to contact you again, write a letter to the debt collector saying so.

If you're not sure that the debt is yours, write the debt collector and dispute the debt or ask for more information. If the debt is yours, don't worry. Decide on the total amount you are willing to pay to settle the entire debt and negotiate with the debt collector for the rest to be forgiven.

What to do if you can't pay your debt collector. If your debt is sold to a debt collector, but you are ultimately unable to pay, your best course of action is to contact a nonprofit credit counseling agency or seek legal aid, as the collections process can be lengthy, complex and expensive.

Dear debt collector, I am responding to your contact about collecting a debt. You contacted me by [phone/mail], on [date] and identified the debt as [any information they gave you about the debt]. I do not have any responsibility for the debt you're trying to collect.

Tell the debt collector that you'll call them back as soon as you verify the information. Review your bills and bank statements to confirm if the debt is yours. This may also help you confirm if the amount you owe is correct. You can ask the collection agency to contact you only in writing.

If you receive a notice from a debt collector, it's important to respond as soon as possible—even if you do not owe the debt—because otherwise the collector may continue trying to collect the debt, report negative information to credit reporting companies, and even sue you.

Find a number you're comfortable with and say, “this is what I can afford to give you,” period. They can take or leave it, it's your choice and not theirs.” Oftentimes, debt collectors will agree to accept as payment-in-full a lump-sum amount that is only a fraction of the total debt.