Stay calm and take control, here's what you need to know.

1. Verify the Debt

When a debt collector contacts you, take these steps:

  • Request Validation: Collectors must send you a written notice with details about the debt
  • Watch for Scams: Be wary of pressure tactics or requests for personal financial information
  • Use Our Dispute Tool: Our debt dispute tool can guide you through the verification process and even send a dispute letter for you (small fee applies)

2. Know Your Rights Under the FDCPA

The Fair Debt Collection Practices Act protects you from abusive practices. Collectors cannot:

  • Call before 8 a.m. or after 9 p.m.
  • Use threats or profane language
  • Contact you at work if prohibited
  • Discuss your debt with others

For more details, visit our FDCPA Checklist.

3. Check the Statute of Limitations

Debts have a time limit for legal enforcement, varying by state. Acknowledging the debt or making a payment can restart this period. Learn more at our article on Understanding the Statute of Limitations on Debt.

4. Document All Communications

  • Keep Records: Save all letters, emails, and notes from phone calls
  • Log Details: Note dates, times, and summaries of each contact
  • Request Written Communication: Ask collectors to communicate via mail or email to maintain a clear paper trail

5. Develop a Plan

Assess your current financial situation. review your budget and know what you can afford before agreeing to any payment plan.

6. Negotiate Wisely

  • Propose a Settlement: It’s acceptable to offer less than what’s owed
  • Get Agreements in Writing: Before paying, ensure the collector confirms the terms to prevent them from selling any remaining debt
  • Learn More: Read our guide on How to Negotiate with a Debt Collector

7. Limit Personal Information

Do not share sensitive details like your Social Security number or bank accounts until you’ve verified the collector’s legitimacy

8. Understand Your Credit Report

  • Check Your Report: Review your credit report regularly for accuracy. You can get free reports annually from AnnualCreditReport.com or use services like Credit Karma for more frequent updates
  • Know the Impact: Understand how collections affect your credit score. Even paid collections can remain on your report for up to 7 years
  • Monitor Changes: Keep an eye on your report for updates. New information or removals can significantly impact your score

9. Seek Affordable Help

  • Non-Profit Credit Counseling: They offer free or low-cost advice
  • Use Our Chatbot: For personalized guidance, chat with DebtChat

10. Report Violations

If a collector violates your rights, file complaints with:

Conclusion

Facing a debt collector can be intimidating, but understanding your rights empowers you to handle the situation effectively. Stay informed, document everything, and don’t hesitate to seek assistance.