What to do... when a debt collector contacts you?

Your Rights
• By law, debt collectors must notify you of your right to dispute a debt, and cease collection attempts on disputed debts until a correction has been made or an explanation has been sent.

Prohibited Practices It is illegal for a debt collection agency to...

• Engage in acts of violence, threats of violence, or obscene language.
• Call before 8 a.m. or after 9 p.m., or more than twice a week.
• Contact your employer, neighbors, family, or friends for any reason other than to locate you. Creditors and debt collectors cannot discuss debts with anyone other than you.

Important Advice
NEVER IGNORE COLLECTION NOTICES. If you do not know if the debt is valid, send by certified mail a letter to the collection agency within 30 days of receiving notice, requesting proof of the original debt/purchase and creditor. After 30 days, if the debt is not disputed, a collection agency is entitled to treat the debt as valid and pursue it further. Once proof of the original debt has been
provided, the agency can seek to collect it.

If the debt is valid...

• Calculate your finances and try to negotiate a repayment plan that neither over promises nor underreports your ability to pay. Get terms of the agreement in writing. Failure to pay a debt could hurt your credit rating and your ability to obtain loans.
• If you do not want the collection agency to continue contacting you, send a cease collection letter by certified mail. Debt collection agencies can send one final notice stating any further legal action they intend to pursue. If you choose this option, the creditor can sue, report you to a credit agency, and take other lawful actions to pursue the debt.

If the debt is not valid...
• Send a cease collection letter by certified mail. Debt collection agencies can send one final notice stating any further legal action they intend to pursue. At the same time, consumers should warn the collection agency in writing by certified mail against falsely reporting the debt to anyone else.

GET EVERYTHING IN WRITING. KEEP A LOG OF ALL CORRESPONDENCE AND TELEPHONE CALLS. NEVER IGNORE A COURT SUMMONS, IF YOU ARE SUED FOR FAILURE TO REPAY A DEBT. AVOID SINKING FURTHER INTO DEBT BY BORROWING TO REPAY EXISTING DEBT. CONSULT WITH A CREDIT COUNSELOR OR ATTORNEY BEFORE DECLARING BANKRUPTCY.

To file a complaint about a debt collection agency or to check an agency's complaint history, call 311 (or 212-NEW-YORK outside the City) or visit www.nyc.gov/consumers.

NYC Info