Should I share personal information with a debt collector? | Consumer Financial Protection Bureau (2024)

FAQs

Should I share personal information with a debt collector? | Consumer Financial Protection Bureau? ›

Don't provide personal or sensitive financial information

You can also stop some kinds of collection contacts, like through certain mediums or at specific times. On the other hand, here's what you shouldn't do. Don't give a collector any personal financial information. Don't make a "good faith" payment, promise to pay, or admit the debt is valid.

Within five days after a debt collector first contacts you, it must send you a written notice, called a "validation notice," that tells you (1) the amount it thinks you owe, (2) the name of the creditor, and (3) how to dispute the debt in writing.

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.

Right to privacy of your personal information

Debt collectors are limited in what they can say or ask about you to other people. (They also can't contact those people more than once.) That information is typically limited to … Debt collectors can usually only speak to certain people about any debts you owe.

Even if you owe money, debt collectors aren't allowed to threaten, harass, or publicly shame you. You have the right to order a debt collector to stop contacting you, and they must comply. If there's a mistake, and you really don't owe the debt, you can take steps to remedy the error.

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.

In order to win a court case, a debt collector must prove that they have proper ownership of the debt, that you actually owe the debt, and that the amount they claim you owe is correct.

You have the right to send what's referred to as a “drop dead letter. '' It's a cease-and-desist motion that will prevent the collector from contacting you again about the debt. Be aware that you still owe the money, and you can be sued for the debt.

How do you outsmart a debt collector? ›

Collection agencies can access your bank account, but only after a court judgment. A judgment, which typically follows a lawsuit, may permit a bank account or wage garnishment, meaning the collector can take money directly out of your account or from your wages to pay off your debt.

California has some pretty strict privacy laws. As one of only a dozen states with two-party consent laws, we are among the most restrictive states when it comes to recording phone conversations. In many cases, this works to protect you when a debt collector calls.

Unpaid debt doesn't go away. Until the debt is either paid or forgiven, you still owe the money. This is true even if it's a credit card debt that is sold to a collection agency and even if you think it's unfair.

You cannot remove collections from your credit report without paying if the information is accurate, but a collection account will fall off your credit report after 7 years whether you pay the balance or not.