When a debt collector pursues a debt you don't owe, federal law still applies. The collector generally must provide validation information about the debt, and a written dispute sent within 30 days of receiving that information generally requires it to stop collecting until it mails verification. False claims about a debt may violate the law, depending on the facts.
A letter or voicemail may concern an account the person has never seen, a creditor whose name means nothing, an amount that looks wrong, or a debt paid years ago. The open question is whether this is a mistake, an identity thief's account or a scam, and whether anything in the law protects someone who does not owe the money in the first place.
This page explains the federal rules that apply to debt collectors, the right to dispute a debt, what collectors may not say or do, and the separate rules that apply when the same debt shows up on a credit report.
What the FDCPA Says About Debts a Consumer Disputes or Does Not Recognize
The Fair Debt Collection Practices Act, found at 15 U.S.C. § 1692 et seq., is the federal law that sets rules for debt collectors. Its stated purpose, in 15 U.S.C. § 1692(e), is "to eliminate abusive debt collection practices by debt collectors."
Under 15 U.S.C. § 1692a(6), a debt collector is any person who uses the mails or other interstate means "in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another." The statute lists exclusions, including a creditor's own employees collecting in the creditor's name.
The words "asserted to be owed" matter here. Under 15 U.S.C. § 1692a(3), a "consumer" is a natural person "obligated or allegedly obligated" to pay any debt, and under 15 U.S.C. § 1692a(5) a "debt" is an "obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance, or services which are the subject of the transaction are primarily for personal, family, or household purposes." The Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) both publish guidance on these rules, at the CFPB's debt collector page and the FTC's debt collection FAQs.
A call about an unfamiliar debt can have several explanations.
- Mistaken identity. The collector has the wrong phone number or address for the person who actually owes the debt. The CFPB notes that a collector may also contact someone to locate a person they know, but may not reveal that anyone owes a debt.
- A relative or former resident. The debt belongs to someone with a similar name, or someone who once lived at the same address.
- Identity theft. Identity theft means someone used another person's name or personal information, without permission, to open an account. The debt is real, but it is not the victim's.
- A mixed file. A mixed file is a credit file where a consumer reporting agency has combined two people's records, so one person's account appears on another's report.
- Already paid or discharged. The debt was paid, settled or discharged in bankruptcy, but the collector's records were never updated. Bankruptcy itself is outside this page's scope.
- Time-barred debt. The time limit for suing on the debt has passed. The FTC says some state laws bar contact about time-barred debts and others allow it, and that either way collectors "can't sue or threaten you over it."
- Phantom debt. A scammer invents a debt entirely. The scam section below covers what separates these from mistaken but real collectors.
The Debt Validation Right: What 15 U.S.C. § 1692g Requires
Debt validation is the process by which a collector tells a consumer what the debt is, and the consumer gets a chance to challenge it. Under 15 U.S.C. § 1692g(a), within five days after the first communication, a debt collector must send a written notice, unless the information was in that first communication or the consumer has paid. The notice must contain:
- the amount of the debt;
- the name of the creditor to whom the debt is owed;
- a statement that unless the consumer disputes the debt within thirty days after receiving the notice, the collector will assume it is valid;
- a statement that if the consumer disputes in writing within that thirty-day period, the collector will obtain verification of the debt or a copy of a judgment and mail it to the consumer; and
- a statement that, on written request within that period, the collector will provide the name and address of the original creditor, if different from the current one.
The CFPB's regulation, Regulation F, adds detail at 12 C.F.R. § 1006.34, including an itemization of the debt and the specific date the collector treats as the end of the validation period.
Under 15 U.S.C. § 1692g(b), if the consumer notifies the collector in writing within the thirty-day period that the debt or any part of it is disputed, the collector must stop collecting the debt, or the disputed part, until it mails verification or a copy of a judgment. The same applies to a written request for the original creditor's name and address. Under 15 U.S.C. § 1692g(c), a consumer's failure to dispute the validity of a debt may not be construed by any court as an admission of liability. The CFPB notes that collection can restart after verification is sent, and that a consumer may continue to dispute afterward.
What a Debt Collector May and May Not Do Under the FDCPA
Beyond validation, the FDCPA sets conduct rules that matter most when a person insists the debt is not theirs. Under 15 U.S.C. § 1692e, a debt collector "may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt." That includes, under 15 U.S.C. § 1692e(2)(A), falsely representing "the character, amount, or legal status of any debt." Insisting that someone owes a debt they do not owe may violate this section, depending on what the collector knew and said.
Under 15 U.S.C. § 1692f, a collector may not use "unfair or unconscionable means" to collect, including collecting any amount not authorized by the agreement creating the debt or permitted by law.
Under 15 U.S.C. § 1692c(c), if a consumer notifies a collector in writing that the consumer refuses to pay or wants communication to stop, the collector may contact the consumer again only to say its efforts are ending, that it or the creditor may invoke specified remedies it ordinarily invokes, or, where applicable, that it intends to invoke a specified remedy. The CFPB notes that such a request does not necessarily stop a lawsuit or credit reporting.
Contact limits apply too. Under 15 U.S.C. § 1692c(a)(1), without the consumer's prior consent given directly to the collector or a court's express permission, a debt collector may not communicate with a consumer at an unusual time or place or a time or place known or which should be known to be inconvenient, and in the absence of knowledge of circumstances to the contrary it is to assume that the convenient time is after 8 a.m. and before 9 p.m., local time at the consumer's location. Under 15 U.S.C. § 1692c(b) and 15 U.S.C. § 1692b, contact with third parties is limited, mostly to finding the consumer; the rules on debt collectors calling family cover this in depth. Whether any particular contact violates these sections depends on its facts.
How to Tell Whether a Collector Is Legitimate or a Scam
A debt collector's duties include the validation notice described above: under 15 U.S.C. § 1692g(a), a written notice with the amount of the debt, the creditor's name and the dispute rights, sent within five days after the initial communication unless that information was in the initial communication or the consumer has paid.
The FDCPA also prohibits false and misleading statements. Under 15 U.S.C. § 1692e, it may violate the law, among other things, for a collector to threaten arrest or imprisonment unless that action is lawful and intended, to threaten action that cannot legally be taken, to falsely imply affiliation with a government agency, to falsely claim to be an attorney, or to use a name other than the business's true name. Under 15 U.S.C. § 1692e(11), a collector generally must disclose that it is a debt collector attempting to collect a debt. The CFPB's harassment page lists calls made without giving a name as harassment.
The CFPB's page on unrecognized debts advises confirming a contact is not a scam before sending payment proof, and describes sending copies, never originals, once the collector is confirmed legitimate.
Disputing a Debt on a Credit Report: What the FCRA Provides
A debt that is not yours can also land on your credit report, and a different law, the Fair Credit Reporting Act, governs that part. A consumer report is the credit file information a company prepares about a person; a consumer reporting agency is a company, such as a credit bureau, that assembles those reports. A furnisher is a business that sends account information to a consumer reporting agency, which can include a debt collector.
Under 15 U.S.C. § 1681i(a)(1)(A), when a consumer disputes the completeness or accuracy of an item in their file, the agency must, free of charge, conduct a reasonable reinvestigation, meaning a fresh check of whether the item is inaccurate, and record its current status or delete it, generally within 30 days of receiving the dispute. That period may be extended by up to 15 days if the consumer sends relevant information during it, with limits in the statute. An agency may end a reinvestigation it reasonably determines is frivolous or irrelevant, with notice to the consumer. Under 15 U.S.C. § 1681i(a)(2), it must notify the furnisher within five business days.
Under 15 U.S.C. § 1681s-2(b), a furnisher that receives that notice must investigate, review the information the agency sent, report results, and, if the item is inaccurate, incomplete or cannot be verified, promptly modify, delete or permanently block it. The CFPB notes a consumer may dispute with the credit reporting companies as well as the collector.
Filing a Complaint with the CFPB or FTC
Both federal agencies take reports about debt collectors. The CFPB states that a consumer having issues with debt collection, or who believes a collector is harassing them, can submit a complaint with the CFPB. The FTC's debt collection FAQs describe reporting a collector as one option, separate from a lawsuit, and note that many states have their own collection laws that differ from federal law.
A complaint to an agency is not the same as a legal claim under the FDCPA. The FTC states that an FDCPA lawsuit must be filed within one year of when the collector broke the law, and that even if a court finds a violation, the consumer may still owe the debt. What a consumer lawsuit involves, and what any filing leads to, depends on the facts.
If You'd Like a Consumer Rights Case Review
A debt that isn't yours can involve several rules at once: the validation notice, any written dispute and its timing, the collector's statements, and whether the account reached a credit report. This page does not cover bankruptcy, debt settlement, or how a collection lawsuit proceeds in court.
To request a consumer rights case review, contact Federal Consumer Rights.
