What to Do When You Don’t Recognize a Debt

Money sometimes can be a little tight during the holidays as we stretch our budgets to accommodate presents and travel, and it can be even tighter if you have debt collectors calling. We, here at your BBB®, often receive calls, emails or other messages from consumers about a debt collection call they’ve received. The caller may be a company attempting to collect a valid debt you just don’t remember accruing, but other times they are schemers attempting to take money from unsuspecting consumers. If you receive a call about a debt you don’t recognize, the Federal Trade Commission and your BBB have the following tips:

1. Know your rights. Read the Fair Debt Collections Practices Act or at the least general information about what collectors can do and say and when they can call, among other things.
2. Find out who is calling. Ask for the collector’s name, the company’s name, address and telephone number. The FTC says “legitimate collectors will provide this information.”
3. Don’t give out additional personal information. The collector might ask you to “confirm” their information. If they have wrong information, don’t correct them with the right information. If you give them the correct information, it may be harder to dispute the debt later.

Get more tips from the FTC and your BBB here.