Your Options in Debt Collection

Paying the full amount may be the fastest way to resolve the debt if it’s correct and you can afford it.

Before you pay:

• Make sure you are certain the debt is real and the debt collector is legitimate. Learn how to check out the details of your debt in this article.
• Get the amount confirmed in writing.
• Ask for a receipt or written confirmation that your account is paid off (settled).
• If the debt is on your credit report, make sure that whoever you owed the debt to reports it as "paid" or "settled."

If you can't pay the full amount, you may be able to:

• Make smaller payments over time.
• Settle the debt by offering to pay a lower lump sum.

Before you agree to a plan or settlement:

• Get the agreement in writing.
• Make sure you can afford the payments.
• Ask how it will affect your credit report.
• Be aware that settling for less may have tax consequences.

For more information:

• Read "Tips for Negotiating with Debt Collectors," by the nonprofit Oregon Consumer Justice.
• Read "How Do I Negotiate a Settlement with Debt Collectors" by the Consumer Financial Protection Bureau.

If you think the debt isn't yours, the amount is wrong, it was already paid, or was erased in bankruptcy, you can dispute it.

To dispute a debt:

• Send a written dispute letter within 30 days of when the collector first contacted you.
• Clearly explain what is wrong and include any proof you have.

What happens next:

• The collector must stop trying to collect until they send you written proof.

For more on how to dispute a debt, read our article "Find Out More or Dispute a Debt in Collections."

If you're not sure what to do, you can talk to:

• A legal aid organization (free help if you qualify)
• A consumer protection attorney
• A nonprofit credit counselor

They may be able to help you understand:

• If the collector has a legal right to collect the debt
• What your rights are
• Whether bankruptcy or another legal option could help
• What options make the most sense for your situation

Go here to search our legal directory for free and low-cost legal services.

• Search Oregon Law Help's Legal Directory for low-cost and free legal help here.
• Contact the Oregon State Bar Lawyer Referral Service to get connected with a lawyer for a low-cost consultation.
• Get tips on finding a lawyer here.

You don't have to respond, but ignoring the debt won't make it go away. This may lead to:

• Ongoing collection calls or letters
• A lawsuit and court judgment saying you legally owe the money
• The debt collector taking money from your paychecks or bank account to pay the debt

In some situations, however, not responding may be the right choice:

• You're sure it's a scam. Real debt collectors should send written notices, give you the name of the original creditor, and explain your rights. If they don't, it may be a scam. 

  For more on how to tell if a debt collection call is real or a scam, see this guide from the Consumer Financial Protection Bureau.

• You already disputed it and 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. If you respond or make a payment on an old debt, it might restart the clock and make it easier for them to sue.

  For more, see our article "Do I Have to Pay a Debt That's Really Old?"

• You are collection-proof and understand the consequences.  If you have little or no income or your money comes from protected sources like Social Security or disability benefits, a collector may not be able to take your money even if they sue you. 

  For more, read "What Does it Mean to be Collection-Proof or Judgment-Proof?"