How to Handle a Call from a Debt Collector

Your cell number is your cell number, and you are not changing it. Unfortunately, the debt collector has it too.

Here is how to handle the call, what the collector is not allowed to do, how to tell a real collector from a scam, and how to make the calls stop for good.

What should I do when a debt collector calls?

Stay calm. It is two people on a phone, and the line is recorded. Do not admit anything, do not promise anything, and do not argue.

Write down the caller’s name, the company, the phone number, the date and the time. Ask what debt they are calling about and who the original creditor was. Then tell them you want the details in writing and end the call.

You are not obligated to explain yourself, negotiate on the spot, or give them your bank information. If you were caught off guard, it is fine to say you will call back.

Do I have to prove the debt is mine?

No. The collector has to show it is yours.

Within five days of first contacting you, a debt collector has to send a written validation notice: the amount, the creditor, and your right to dispute. If you dispute the debt in writing within 30 days, the collector has to stop collecting until it sends you verification.

Use that. Collectors work from purchased files that are often wrong about the amount, the interest, or whose debt it is. Make them prove it before you pay a dollar.

What is a debt collector not allowed to do?

The Fair Debt Collection Practices Act applies to third-party collectors, meaning agencies and debt buyers, not the original creditor. Under it, a collector cannot:

• Call before 8 a.m. or after 9 p.m., or at a time it knows is inconvenient for you.
• Call you repeatedly to harass you. Federal rules now presume that more than seven calls in seven days about one debt is harassment.
• Call you at work after you tell them your employer does not allow it.
• Use profanity, threaten you, or threaten arrest or criminal charges.
• Lie about the amount, the creditor, or what will happen if you do not pay.
• Add interest or fees the contract does not allow.
• Contact you at all once you tell them in writing to stop, except to confirm it will stop or to tell you it is taking a specific action such as filing suit.
• Contact you directly once it knows you have a lawyer.

A collector that breaks these rules can owe you damages and your attorney’s fees. Keep your call log.

How do I tell a real collector from a scam?

Scam collection calls follow a pattern. The caller uses official-sounding words with no meaning: “compliance officer,” “the filing party,” “the district office.”

There is a deadline measured in “business hours,” a threat to show up at your home or workplace, and a closing line like “you have been officially notified.”

Real collectors identify the company and the creditor and send the written notice described above. Real legal process does not arrive by voicemail with a callback number.

If you get a call like that, do not call back and do not pay. Look up the company independently, and if the debt is real, deal with the actual creditor in writing.

Should I tell them my story?

Briefly, once. You are not paying because you cannot, not because you will not. That is all they need.

The problem is that tomorrow you get a different agent, and the story starts over. Telling it does not make the debt go away, and a cease-contact letter does not either. The collector can still sue, and a judgment can lead to garnishment.

Stopping the calls and solving the debt are different problems. Solve the second one and the first one solves itself.

What happens when I hire a lawyer?

The calls come to me instead.

Once a collector knows you are represented, the law requires it to contact your lawyer, not you. I verify and dispute the debt if there is a reason to, check the collector’s compliance, and if the debt is valid, negotiate a settlement that usually costs less than the balance. If the collector keeps calling you anyway, that is a violation I can use.

If you have decided to file bankruptcy, I take your creditor calls in the weeks before filing, so you can focus on getting the case ready instead of answering the phone.

When do the calls stop for good?

The day a bankruptcy case is filed. The automatic stay takes effect immediately and bars every creditor from calling, writing, suing or garnishing.

Creditors who keep collecting after the filing face sanctions and attorney’s fees, and most stop the moment they learn the case number. If you are getting calls from several collectors at once, that is usually the sign that the debt problem is bigger than any one call, and a bankruptcy consultation is the right next step.

What should I do right now?

If one collector is harassing you, keep the log and call me. You may have a claim against them.

If several collectors are calling, call me at (202) 448-5136 for a free consultation. I will take the calls, and I will tell you whether settlement or bankruptcy is the way to make them stop.

I handle debt defense in DC and Northern Virginia, and bankruptcy in DC, Maryland and Northern Virginia. Don’t let a single collector throw off your whole financial picture.