Find Out More or Dispute a Debt in Collections

When a debt collector contacts you, they must give you certain basic information in a letter called a "validation notice." This includes:

• Who the debt was originally owed to (the original creditor).
• Who the debt collector is.
• How much they say you owe.

If you don't recognize the company contacting you, it may be a hired debt collector or a company that bought the debt. Or it could be a scam.

Getting more information helps you confirm whether the debt is real and whether the debt collector has the legal right to collect it.

• What to do when first contacted by a debt collector.
• What to look for in a debt collection notice, from the nonprofit Oregon Consumer Justice.

Look through any records you have about the debt—things like bills, statements, or payment receipts. Do they match what the debt collector said? Does anything seem off?

Use this information to help you decide your next step. You can:

1. Dispute the debt in writing.

You can send a dispute letter to get more information if you believe it might be wrong, think it's not yours, or want the collector to prove you owe it. This is also called a verification request. 

If you send it within 30 days, the collector must pause collection until they respond.

2. Ignore it.

But this can be risky. Keep reading to learn when that might make sense.

Keeping them straight: validation and verification

• A validation notice is what the debt collector must send you. It includes who you owe, how much, and your right to dispute the debt.
• A verification request, also called a dispute letter, is what you send the debt collector. It's a written dispute asking them to show proof that the debt is real and that they're allowed to collect it.

If you don't recognize a debt, think it's incorrect, or just want more details before deciding what to do, you can send a written dispute. This is also called disputing the debt or asking for verification.

• To protect your rights, send your letter within 30 days of the debt collector's first contact. 
• Use certified mail or ask for a receipt when you mail it and keep a copy for your records. 

In your letter, say that you are "disputing" the debt or ask them to please "treat this debt as being in dispute." 

You can ask them to:

• Name the original creditor (who the debt was first owed to).
• Show how they calculated the amount, including any fees or interest.
• Prove they have the legal right to collect the debt from you.

You should also clearly explain if:

• The debt isn't yours, or it's from identity theft or fraud.
• The amount is wrong. Learn when interest and fees are allowed in debt collection, and when they aren't.
• You've already paid some or all of it, or it was erased in bankruptcy.
• The debt is too old to collect. Learn when debts are too old to collect.

What happens next: The debt collector must stop collection efforts until they send you written proof.

For a sample dispute letter and step-by-step instructions: See this guide from the Consumer Financial Protection Bureau, a government agency that helps consumers.

In most cases, it's better to respond to a debt collection notice, especially if you're not sure the debt is correct. 

But in some situations, it may make sense not to respond:

• You're sure it's a scam. Real debt collectors should send written notices, give you the name of who you originally owed, and explain your rights. If they don't, it may be a scam. How to tell if a debt collection call is real or a scam.
• You've already disputed the debt, but they haven't replied. If you sent a dispute or verification request within 30 days and the collector hasn't sent proof, they legally must stop trying to collect.
• The debt is very old. Most debts can't be collected through the courts after a certain number of years. In Oregon, it's usually six years. If you respond or make a payment on an old debt, it might restart the clock and make it easier for them to sue. Do I have to pay a debt that's really old?

If you're unsure, it's okay to pause. But don't wait too long. You have the most protection if you act within 30 days of first contact.

If you send your dispute within 30 days of when the collector first contacts you:

• The debt collector must stop trying to collect.
• They can't contact you again until they send written proof.

If you wait more than 30 days, they can keep trying to collect while they review your request.

Even if you think the debt might be yours, asking for proof before agreeing to pay is a good idea. 

• You don't have to pay or make promises until you're sure.
• Even if you owe the debt, it's possible the debt collector might not be allowed to collect it or collect all of what they claim.

• What to do if a debt collector contacts you.
• What debt collectors can and cannot do.
• Do I have to pay a debt that's really old?