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How to deal with debt collectors and stop harassing calls

If you've been making late payments or you haven't made any payments for months, your creditor may send your account to collections. That is, your creditor may pass on your account to its in-house collection department or hire a third party collection agency (CA) to collect the debt from you. The creditor may even sell your account to third party debt collectors.

Who are debt collectors?

Debt collectors from a collection agency try various means to collect payments from you. When your creditor hires a collector, the creditor retains the right to your account while the collector simply acts on their behalf. When a creditor sells your account to a third party debt collector, the collector becomes the legal owner of your account. This usually happens when the creditor believes they cannot collect on the account (called charging off).


The collection agency may in turn sell your accounts to another debt collector. That is why you may get sudden calls for payment of a very old debt account which is well past the Statute of Limitations (SOL) from a collector you don't recognize. However, third party collectors often harass debtors in an attempt to collect payments.

How to fight debt collectors

If you're concerned about how to handle debt collectors, learn about your rights as a consumer in order to deal with harassing calls, letters, and illegal practices. Below are some tips on how to handle debt collectors in different cases.


Case 1: You owe the debt


  • Stop avoiding debt collectors: If you don't answer collection calls, things may get worse. The collectors may take you to court and get an order to garnish your wages.
  • Don't reveal much about your finances: Don't talk about your finances in detail because you don't know the collector. The collector can use any extra information against you because he's only interested in collecting payments from you.
  • Record your conversation: Keep a record of the bill collectors you've spoken to, the time, and a summary of your conversation. You can use such records as proof against bill collectors who violate the law. You can even tape the conversation (secret taping is allowed by 35 states and the District of Columbia). However, if secret taping isn't allowed in your state, get the collector's permission before you tape the conversation or keep a written log.
  • Verify or validate the debt: When a collection agency claims you owe them a certain amount of money, you need to send a written request to the agency asking them to prove that you owe the debt. Just check out the debt validation letter to ask for validation of the debt in writing. Debt validation is essential because collectors often contact debtors for old accounts where the SOL has expired or for accounts which have already been paid off.
  • Ask for some time to pay off the account: If you owe the debt and you're unable to make payments, ask the CA for some more time so you can find out how to pay off the debt. You can try to settle or request a new payment schedule based on what you can afford. Check out how to settle your debts yourself.

    If you have multiple bills, you may enroll in a debt consolidation program. By choosing to pay off bills either in a consolidation program, you avoid harassment from collection agencies.
  • Use a Cease and Desist Letter: If you want to deal with the creditor directly regarding payment of your debt, you can request that the CA to stop contacting you. This can be done by sending them a Cease and Desist Letter.

Case 2: You've already paid off the account


If your account is paid off, here's how you should be dealing with debt collectors when they contact you for payments.


  • Dispute the debt: You must dispute the debt within 30 days of the date the bill collector sent you a notice (with creditor's name) telling you how much you owe. Send this letter via fax or certified mail so that you'll know the CA has received it.
  • Send in proof of your bill payment: You need to attach proof of your bill payment (payment notice from creditor, payment arrangement letter from another CA, etc) with the debt dispute letter.

    A bill collector cannot renew collection activities unless he can show you proof you owe them. Once you provide collectors with enough proof that you've paid the bill, they'll stop their collection efforts. If they still harass you, just remind them that they're violating the FDCPA and contact a collections attorney to help you. You should also file a complaint with the FTC (at "https://www.ftccomplaintassistant.gov/") and your State Attorney General.

Case 3: Your debt is too old


If you receive collection calls on a debt that is 5 and 10 years old, or more, don't worry! Old unpaid bills won't hurt you as much as the recent ones. If the collector contacts you after the SOL expires, they cannot take you to court under state or federal law. Your obligation to pay the debt remains, and once you start payments again, the SOL starts over if you default.

Therefore, when it comes to dealing with debt collectors and old accounts, it is better to not acknowledge the debt. Simply ask the collector to stop contacting you, stating that you're aware that the SOL has expired. Use the SOL Expiration sample letter to communicate with the collector.


Case 4: Your debt has been discharged in bankruptcy


If your debt has been discharged in Chapter 7 bankruptcy, try to dispute it on your own. Include a copy of your discharge order, which proves the account has been discharged. If the collector ignores your letter, file a complaint with the bankruptcy court for violation of the discharge order or you contact your bankruptcy attorney to assist you.


Case 5: You actually don't owe the debt


Send the collector a validation letter via fax or certified mail. Once the creditor receives the validation letter, they are obligated to reply to the letter and send you proof that you owe the debt or stop contacting you. If they refuse to validate the debt, send them a Cease and Desist Letter. If they persist in contacting you after they have received the Cease and Desist Letter, file a complaint with the Federal Trade Commission and your state's Attorney General.

Dealing with creditors and debt collectors becomes easier when you're aware of their tactics, your state's collection laws, and your consumers rights. You can start by signing up for a no-obligation counseling session with a debt relief company. They'll help you pay off your bills without having to worry about collection calls or harassment.



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* Disclosures:
  • By signing up for counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
  • Some creditors and collection agencies refuse to lower the pay off amount, interest rate, and fees owed by the consumer.
  • Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
  • Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
  • The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.
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