Things You Should Never Say to a Debt Collector (2024)

Table of Contents

Things You Should Never Say to a Debt Collector If you get an unexpected call from a debt collector, here are several things you should never tell them: 1. Don’t Admit the Debt Even if you think you recognize the debt, don’t say anything. You have no idea if the call is from a real debt collector or whether they are really authorized to collect anything from you. The Federal Trade Commission, Consumer Financial Protection Bureau, and state Attorneys General have filed numerous cases against “phantom debt collectors” who obtain or make up plausible information about supposed debts and contact people to try to get them to pay. The information can be quite legitimate sounding. For example, one case was against a broker of payday and other high-interest loans. People would apply for the loans over the Internet. The broker sold the applicants’ information to “phantom debt collectors.” The “phantom debt collectors” would know that the consumer at least attempted to obtain a loan at a certain time and detailed information about the consumer. Five years after the fact the consumer might actually think they owe money to the caller. The Fair Debt Collection Practices Act entitles you to a written “notice of debt” stating who is contacting you, identifying the present owner of the alleged debt, and giving its amount. The “notice of debt” also must inform you how to request verification of the debt. We suggest that you exercise that right. A legitimate debt collector will be able to produce account statements, a signed agreement, or other documents showing it is legitimate and authorized to collect the debt. Note that you have only 30 days after receipt of the notice to request verification, which must be done in writing. Keep a copy of all correspondence. 2. Don’t provide bank account information or other personal information Never give out your social security number, bank account information, employment information, or other personal information. Debt collectors will try to get you to make payment over the phone when they call you, before you have a chance to request verification of the debt. Don’t, unless you are willing to have your bank account drained by the caller or anyone that the caller sells your information to. If, after requesting verification of a debt, you can see that it is yours, that the collector is legitimate and authorized to collect it, and that the debt is within the statute of limitations, and decide to pay it, you can send an old-fashioned check or money order. If the debt collector does not give you a legitimate street address (not a private mail box) that you can look up on Google Maps and identify with the collector, that is a red flag. 3. Document any agreements you reach with the debt collector If you decide to make payment, or settle the debt, you need to get everything in writing. The collector should be willing to send a letter setting forth the terms of any settlement or payment arrangement. Alternatively, you can send a letter with your check or money order setting forth the terms and the conditions under which the check or money order can be cashed. Keep a copy. Oral agreements are worth the paper they are written on. If the debt is on your credit report, ask the debt collector to remove the collection account from your credit report. At the very least, it has to be reported as a paid or settled (as the case may be) debt. FAQs

Things You Should Never Say to a Debt Collector

If you get an unexpected call from a debt collector, here are several things you should never tell them:

1. Don’t Admit the Debt

Even if you think you recognize the debt, don’t say anything. You have no idea if the call is from a real debt collector or whether they are really authorized to collect anything from you. The Federal Trade Commission, Consumer Financial Protection Bureau, and state Attorneys General have filed numerous cases against “phantom debt collectors” who obtain or make up plausible information about supposed debts and contact people to try to get them to pay. The information can be quite legitimate sounding. For example, one case was against a broker of payday and other high-interest loans. People would apply for the loans over the Internet. The broker sold the applicants’ information to “phantom debt collectors.” The “phantom debt collectors” would know that the consumer at least attempted to obtain a loan at a certain time and detailed information about the consumer. Five years after the fact the consumer might actually think they owe money to the caller.

The Fair Debt Collection Practices Act entitles you to a written “notice of debt” stating who is contacting you, identifying the present owner of the alleged debt, and giving its amount. The “notice of debt” also must inform you how to request verification of the debt. We suggest that you exercise that right. A legitimate debt collector will be able to produce account statements, a signed agreement, or other documents showing it is legitimate and authorized to collect the debt. Note that you have only 30 days after receipt of the notice to request verification, which must be done in writing. Keep a copy of all correspondence.

2. Don’t provide bank account information or other personal information

Never give out your social security number, bank account information, employment information, or other personal information. Debt collectors will try to get you to make payment over the phone when they call you, before you have a chance to request verification of the debt. Don’t, unless you are willing to have your bank account drained by the caller or anyone that the caller sells your information to.

If, after requesting verification of a debt, you can see that it is yours, that the collector is legitimate and authorized to collect it, and that the debt is within the statute of limitations, and decide to pay it, you can send an old-fashioned check or money order. If the debt collector does not give you a legitimate street address (not a private mail box) that you can look up on Google Maps and identify with the collector, that is a red flag.

3. Document any agreements you reach with the debt collector

If you decide to make payment, or settle the debt, you need to get everything in writing. The collector should be willing to send a letter setting forth the terms of any settlement or payment arrangement. Alternatively, you can send a letter with your check or money order setting forth the terms and the conditions under which the check or money order can be cashed. Keep a copy. Oral agreements are worth the paper they are written on.

If the debt is on your credit report, ask the debt collector to remove the collection account from your credit report. At the very least, it has to be reported as a paid or settled (as the case may be) debt.

FAQs

Things You Should Never Say to a Debt Collector? ›

Don't give a collector any personal financial information. Don't make a "good faith" payment, promise to pay, or admit the debt is valid. You don't want to make it easier for the collector to get access to your money, or do anything that might revive the statute of limitations.

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What not to tell a debt collector? ›

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What's the worst a debt collector can do? ›

Debt collectors are limited on when they can call you — typically, between 8 a.m. and 9 p.m. They are not allowed to call you at work. They can't lie or harass you. Debt collectors can't make you pay more than you owe or threaten you with arrest, jail time, property liens or wage garnishment if you don't pay.

What debt collectors don t want you to know? ›

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.

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What is the 11 word phrase to stop debt collectors? ›

If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. 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.

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What are 2 things that debt collectors are not allowed to do? ›

The Fair Debt Collection Practices Act says debt collectors can't harass, oppress, or abuse you or anyone else they contact. For example, debt collectors can't: Make repeated phone calls that are intended to annoy, abuse, or harass you or any person answering the phone. Use obscene or profane language.

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How do you scare debt collectors? ›

9 Ways to Turn the Tables on Debt Collectors

Don't Wait for Them to Call. Consider picking up the phone and calling the debt collector yourself. ...
Check Them Out. ...
Dump it Back in Their Lap. ...
Stick to Business. ...
Show Them the Money. ...
Ask to Speak to a Supervisor. ...
Call Their Bluff. ...
Tell Them to Take a Hike.

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Mar 26, 2013

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What is the 777 rule in collections? ›

One of the most rigorous rules in their favor is the 7-in-7 rule. This rule states that a creditor must not contact the person who owes them money more than seven times within a 7-day period. Also, they must not contact the individual within seven days after engaging in a phone conversation about a particular debt.

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Can debt collectors see your bank account balance? ›

Can debt collectors see your bank account balance or garnish your wages? Collection agencies can access your bank account, but only after a court judgment.

How to get rid of debt collectors without paying? ›

Once you notify the debt collector in writing that you dispute the debt, as long as it is within 30 days of receiving a validation notice, the debt collector must stop trying to collect the debt until they've provided you with verification in response to your dispute.

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What is the loophole of debt collection? ›

The legal loophole is the debtor has no right in law to know or enquire who ownes the debt which then makes the contractural relationship no longer transparent.

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How to outsmart a debt collector? ›

You can outsmart debt collectors by following these tips:

Keep a record of all communication with debt collectors.
Send a Debt Validation Letter and force them to verify your debt.
Write a cease and desist letter.
Explain the debt is not legitimate.
Review your credit reports.
Explain that you cannot afford to pay.

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Mar 11, 2024

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How long before debt collectors give up? ›

The amount of time that a debt collector can legally pursue old debt varies by state and type of debt but can range between three and 20 years.

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How do you outsmart a debt collector? ›

You can outsmart debt collectors by following these tips:

Keep a record of all communication with debt collectors.
Send a Debt Validation Letter and force them to verify your debt.
Write a cease and desist letter.
Explain the debt is not legitimate.
Review your credit reports.
Explain that you cannot afford to pay.

More items...

Mar 11, 2024

What happens if you never answer a debt collector? ›

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.

What 4 things to ask for when a debt collector calls? ›

Ask CFPB

Who you're talking to (get the person's name)
The name of the debt collection company they work for.
The company's address and phone number.
The name of the original creditor.
The amount owed.
How you can dispute the debt or ensure that the debt is yours.

Jul 20, 2017

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What is a creditor legally required to do if you dispute a debt? ›

If you choose to dispute the debt, you must do so in writing within 30 days of receiving the debt validation letter. Once the debt collector receives your written dispute, they must cease all collection activities until they provide verification of the debt.