You can send a formal request to the debt collector to contest the debt or obtain more information if you think the debt has already been paid, that you do not owe the debt, that the amount is incorrect, or that the debt is not even yours.
Don’t ignore or avoid a debt collector if they contact you regarding a debt you may or may not owe. Generally speaking, debt collectors are required by law to provide you with certain information about the debt. This information, sometimes referred to as validation information or a validation notice, can assist you in learning more about the debt and allowing you to dispute it if you don’t believe you owe it.
Moreover, the CFPB offers sample letters to help you decide how best to reply to a debt collector in light of your particular circumstances. Note: The CFPB’s sample letters are not legal advice.
Ignoring debt collectors is like ignoring a ticking time bomb. It might seem like the easiest solution in the moment, but the consequences can be severe. Debt collectors have a variety of tools at their disposal and they won’t hesitate to use them if you don’t respond to their attempts to collect.
Here’s why ignoring debt collectors is a bad idea:
1. They’ll keep calling and harassing you Debt collectors are persistent They’ll call you at home, at work, and even on your cell phone. They’ll send you letters and emails. They may even show up at your doorstep. This constant harassment can be stressful and disruptive to your life.
2. They can sue you. If you ignore a debt collector long enough they may decide to sue you in court. This can lead to a judgment against you, which means they can garnish your wages or even seize your property.
3. They can damage your credit score. When a debt goes unpaid, it gets reported to the credit bureaus. This can damage your credit score, making it difficult to get loans or other forms of credit in the future.
4. They can add interest and fees to your debt. The longer you wait to pay off a debt, the more interest and fees will accrue. This can make the debt even more difficult to pay off.
5. They can sell your debt to a collection agency. Collection agencies are notorious for their aggressive tactics. They may use even more extreme measures to collect the debt, such as threatening to arrest you or report you to the police.
Instead of ignoring debt collectors, here are some things you can do:
- Talk to the debt collector. The first step is to talk to the debt collector and find out what they want. They may be willing to work with you to create a payment plan or settle the debt for less than the full amount.
- Dispute the debt. If you don’t think you owe the debt, you can dispute it with the debt collector. You’ll need to provide them with evidence that you don’t owe the debt, such as a copy of your credit report or a letter from the original creditor.
- Get help from a credit counselor or debt management company. A credit counselor or debt management company can help you create a budget and negotiate with your creditors. They can also help you develop a plan to get out of debt.
Ignoring debt collectors is not the answer. By taking action, you can avoid the negative consequences and get your finances back on track.
Here are some additional tips for dealing with debt collectors:
- Stay calm and polite. It’s important to stay calm and polite when you’re talking to a debt collector. This will help you avoid making the situation worse.
- Don’t give out any personal information. Don’t give out your Social Security number, bank account number, or credit card number to a debt collector unless you’re sure they’re legitimate.
- Keep a record of your conversations. Keep a record of your conversations with debt collectors, including the date, time, and what was said. This will help you if you need to file a complaint later.
- Don’t be afraid to say no. You don’t have to agree to anything that you’re not comfortable with. If a debt collector is pressuring you, you can say no and hang up the phone.
Remember, you have rights when it comes to debt collection. Don’t let debt collectors bully you into paying a debt that you don’t owe or can’t afford to pay.
Keep good records of your communications with a debt collector
Keeping copies of everything you send to a debt collector and a file containing all letters and documents they send you is a good idea. Also, write down dates and times of conversations, along with notes about what you discussed. If you need to meet with a lawyer, go to court, or dispute something with a debt collector, these records can be helpful.
If you’ve already paid the debt
In the event that a debt collector gets in touch with you regarding a debt you’ve already settled, inform them of your payment history. However, make sure it’s legitimate before doing anything else.
If you are certain that the person you are speaking with is a legitimate debt collector, you can email copies of your credit card statements or cancelled checks as proof that you paid the debt. You may also include copies of any correspondence about settling the debt. Don’t send original documents – only copies – so you can keep the originals as proof.
You can get this information by getting in touch with the creditor you originally paid if you don’t have any letters attesting to your payments or documentation proving you’ve paid off the debt.
DO NOT Pay Debt Collectors | How to Handle Debt When It’s Gone to Collections
FAQ
What happens if you ignore a collection company?
Is it true you don’t have to pay a collection agency?
How do I get out of collections without paying?
What should you not say to a collection agency?
Should you ignore a debt collection agency?
Ignoring a collection agency can negatively impact your credit, cause your debt to accrue interest and potentially result in a lawsuit. It’s ultimately better to pay or dispute a debt than avoid debt collection agencies altogether. While it may be tempting to simply ignore debt collectors, that is generally a poor long-term strategy.
What happens if you ignore a debt collector?
If you ignore a debt collector’s attempts to contact you and they file a lawsuit to collect the debt, it’s important to take it seriously.
Can a collection agency give up on a debt?
Even if you can’t pay the debt in full, it’s often best to work with the collection agency to establish a payment plan. Collection agencies are unlikely to give up on a debt, especially if you owe a substantial amount.
What happens if a creditor passes a debt to a collection agency?
An original creditor may pass your debt to a collection agency or sell it to a debt buyer. No matter who it’s coming from, this contact can feel relentless. That’s why it’s a good idea to pick up the phone and see if and how the creditor or collector is willing to work with you to deal with the unpaid debt.