Can a debt collector still collect a debt after I’ve disputed it? | Consumer Financial Protection Bureau (2024)

FAQs

Can a debt collector still collect a debt after I’ve disputed it? | Consumer Financial Protection Bureau? ›

If you dispute it, the collector must stop collection activity after getting your letter or form until they've sent the proof. If the collection agency failed to validate the debt, it is not allowed to continue collecting the debt.

After verifying the debt, the debt collector can report it, but only as a disputed debt. A debt collector violates the FDCPA and the Fair Credit Reporting Act if it reports a debt that it knows, or should know, to be false. Should I dispute the debt even if I think I probably owe the money? Probably.

Once you've disputed the debt, the collector can't call or contact you to collect the debt until they've responded with verification of the debt. You can also request that the debt collector give you the name and address of the original creditor, if different from the current creditor.

The “777 Rule” states that debt collectors may attempt to contact a consumer about a single debt up to seven times in seven days. Phone numbers do not matter; it's the number of debts that matters.

Does disputing a debt restart the clock? Disputing the debt doesn't restart the clock unless you admit that the debt is yours. You can get a validation letter to dispute the debt to prove that the debt is either not yours or is time-barred.

A debt collector must stop all collection activity on a debt if you send them a written dispute about the debt, generally within 30 days after your initial communication with them. Collection activities can restart, though, after the debt collector sends verification responding to the dispute.

It is usually worth the effort to dispute the debt. At the very least, it will buy you some time.

If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.

Debt collectors cannot harass or abuse you. They cannot swear, threaten to illegally harm you or your property, threaten you with illegal actions, or falsely threaten you with actions they do not intend to take. They also cannot make repeated calls over a short period to annoy or harass you.

What not to tell a debt collector? ›

Don't provide personal or sensitive financial information

Never give out or confirm personal or sensitive financial information – such as your bank account, credit card, or full Social Security number – unless you know the company or person you are talking with is a real debt collector.

Can you dispute a debt if it was sold to a collection agency? Your rights are the same as if you were dealing with the original creditor. If you do not believe you should pay the debt, for example, if a debt is stature barred or prescribed, then you can dispute the debt.

Can a Debt Collector Collect After 10 Years? In most cases, the statute of limitations for a debt will have passed after 10 years. This means a debt collector may still attempt to pursue it (and you technically do still owe it), but they can't typically take legal action against you.

Under the Debt Collection Rule, collectors are presumed to violate the law if they place a telephone call to you about a particular debt: More than seven times within a seven-day period, or. Within seven days after engaging in a phone conversation with you about a particular debt.

Disputed debt appears on credit reports. However, a credit bureau generally will not use it to calculate credit scores until the investigation is completed.

Effective November 30, 2021, an amendment to Regulation F, which implements the FDCPA, says that a debt collector can't report a debt to the three major credit reporting agencies, Equifax, Experian, and TransUnion, before first contacting the consumer.

A: Yes. A collection agency can report to the credit bureaus even if you're making payments. Once your debt is transferred from the original creditor to the collection agency, the debt gets a new tradeline on your credit report that's under the control of the collection agency.

If a collection is on your report in error, dispute it

Delinquent accounts should fall off your credit report seven years after the date they first became and remained delinquent.