Debt collectors regularly call people who owe money, but some scammers blend in with these callers to steal money and sensitive information from victims.
These scammers may pose as debt collectors and demand that a debt be repaid for an account that you don’t recognize. Knowing your rights and conducting due diligence can help you determine if the call is legitimate or fraudulent.
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What a validation notice is and why it matters
Before giving any money to a debt collector, you can request a validation notice. This notice should include the name of the creditor, the amount owed, the consumer’s rights to dispute the debt and how to request more information.
All of those details can help you verify if the debt is legitimate. Any questionable information regarding the creditor and amount owed can spark a closer look and make it easier to indicate that the caller was trying to scam you. You may also discover that it is an old debt or a duplicate collection request, which may help you pinpoint a scammer.
The Consumer Financial Protection Bureau (CFPB) says that signs of a scam include that the debt collector is threatening you with criminal charges, refusing to give you additional information about the debt, refusing to give you a mailing address or phone number and asking you for personal financial information.
What to check before paying anything
You do not have to immediately pay a debt collector after receiving a call. Make sure you recognize the original creditor listed on the validation notice and that the amount makes sense. The debt collector’s name and mailing address must be included in this document, so you can do some research to see if the person is legitimate.
Setting up autopay or making a “good faith” payment just to get a debt collector off your back without any research isn’t the right move. You can end up giving money to a scammer instead, and make it more difficult to climb out of debt. You may also want to consult with legal aid or a consumer attorney for state-specific questions, especially when it comes to certain old debts.
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How to dispute the debt or ask for more information
Consumers have 30 days to dispute debt after receiving a validation notice. It’s also within this timeframe that they can request the name and address of the original creditor. A debt collector cannot collect debt during the dispute, and it puts the obligation on the collector to verify the debt.
You can use sample letters from the CFPB to get started. These letters outline suggested ways to dispute debt, depending on the scenario. Keeping copies of any documents you use as part of the dispute will make it easier to refer back to them if necessary. You can file complaints with the CFPB and Federal Trade Commission (FTC) and consider reaching out to a local legal aid office or state attorney general if the debt collector continues to request money during the dispute.
Slow the process down and remember your rights
Getting a call from a debt collector can feel stressful, and scammers want you in that exact state of mind. One of the safest things to do is avoid making any rash decisions and request a validation notice. Remember your rights and look them up on the CFPB's website if you need a reminder.
A legitimate collector should be able to explain the debt. Asking them questions on the phone can make it easier to distinguish between a real debt collector and a scammer.
