How To Find Out What Debt Collectors You Owe

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Mounting debt? Are you unsure of what you owe to debt collectors? Here’s a guide to find out exactly how much and who you owe, so that you can take control of your finances and stay on top of your debt.

Why You Should Know Who You Owe

Knowing who you owe allows you to negotiate or settle your debt. It also helps you avoid fake collection attempts by debt collection scammers because you’ll be able to tell that the debt they’re calling about isn’t real.

If someone contacts you claiming to be a debt collector, take these steps to make sure it’s not a scam:

• Know the debt collector’s information.
• Contact the creditor and verify your account is in collections.
• Verify the debt collector’s name and licensing number with the National Multistate Licensing System Consumer Access.

Start With Your Credit Report

To find out if you have debt in collections, review your credit report.

You can obtain a free credit report from each of the three major credit bureaus:

• Equifax
• Experian
• TransUnion

You can also get a free credit report every 12 months from AnnualCreditReport.com.

If you have any accounts in collections, they’ll show up as separate records on your report. If you see a collection account on your credit report, contact the creditor or debt collection agency listed. Not all debt collectors report to credit bureaus, though.

Contact Your Original Creditors

If you know there’s an old debt that you haven’t paid, contact the original creditor — even if you aren’t sure whom you owe now. The creditor should be able to tell you if the debt was assigned or sold to a collection agency.

Pro Tip

When you speak with a creditor, keep a detailed record of the phone numbers used and when you called either in a notebook or a spreadsheet. Note what was said and who you spoke with. You’ll have proof of your communications that are organized and easy to reference, and can protect you in case you encounter a scammer or legal issues.

If the debt has been sold, the original creditor will not be able to negotiate with you — you’ll have to contact the debt collector.

Review Past Mail and Emails for Collection Notices

Debt collection agencies only get paid if they collect from you, so usually you’ll know if you have accounts in collections. However, if you’ve moved or changed your phone number, a collection agency could try to reach you at an old number. Besides phone calls and texting, debt collectors can also contact you by letter, email and direct messaging via your social media accounts.

Know Your Rights When Dealing With Collectors

These are your rights when dealing with debt collectors, according to the Consumer Financial Protection Bureau (CFPB):

• Validation: Within five days of first contact, debt collectors must identify who they are, the amount owed and how to dispute the debt.
• Time limits: Debt collectors can’t call you before 8 a.m. or after 9 p.m. unless you’ve agreed to it. They can’t contact you at work after you’ve requested them to stop.
• Call frequency: No more than seven calls in a 7-day period. There must be a 7-day pause after a phone call about the same debt.
• Communication: Debt collectors can contact you by phone, mail, email, text or social media — unless you say otherwise.
• No harassment: Debt collectors may not use threats, obscene language or call repeatedly just to pressure you.
• No lying: They can’t lie about the amount you owe, pretend to be someone else or claim legal action if none is planned.
• No unfair practices: No unauthorized fees, early check cashing or exposing your debt to others.
• Your privacy is a priority: They can’t put information on the outside of envelopes that identifies them as a debt collector.

Ask Debt Collectors to Validate the Debt

According to the Fair Debt Collection Practices Act, consumers have the right to request that debt collectors validate their debts. If you receive a debt collection letter for a debt you’re not sure you owe, you can ask the collector to validate the debt.

Here’s how:

1. Send the debt collector a letter within 30 days of its collection notice.
2. The letter should states that you dispute part or all of the debt.
3. Once the debt collector receives the letter, it may not call or contact you to collect the debt until it has responded to you and verified the debt.

What To Do After You Identify Your Collectors

After you identify the debt collectors you owe, compare the amounts they say you owe to your records, such as your most recent credit card bills.

Then, decide whether you want to pay off, negotiate or dispute the debts. If you’re unsure of what to do, contact a nonprofit credit counseling service, such as the National Foundation for Credit Counseling, for help.

Pay Off the Debt

The most straightforward way to deal with debt in collections is to pay off what you owe. However, make sure you’re paying the right party.

If your debt has been sold, you can’t just pay the original creditor, because the collection agency now owns the debt. Know that paying off your debt might not affect your credit score.

Your credit report will be updated to show that the collection account has been paid off, but the information will remain on your report for seven years after the original delinquency date.

Negotiate the Debt

If you can’t pay back the debt in its entirety, you might be able to negotiate your debt by paying back a smaller amount in exchange for the creditor forgiving what remains. Here’s what to do:

1. Make sure you’re negotiating with the entity that owns your debt, whether that’s the collection agency or the original creditor.
2. When negotiating, you can offer to make a lump sum payment or create a new, more flexible payment plan.
3. Remember, though, that the creditor or debt collector doesn’t have to make a deal with you.
4. If you do reach an agreement, make sure you get it in writing, so you have proof of the terms if the creditor or debt collector ever comes back and says you still owe money.

Dispute the Debt

In some cases, the debt might legitimately not be yours, such as if you’ve had your identity stolen.

If you receive a notice from a collection agency for a debt that isn’t yours, you should dispute it right away. Here’s what you can do:

1. Document your dispute it in writing in the first 30 days.
2. Once the collection agency receives your dispute, it must cease contacting you until it has provided verification of the debt.
3. You should also dispute the information with each of the credit bureaus.
4. Provide as much information as possible to show that you didn’t take out the original debt.

Tips to Avoid Future Confusion

Knowing what debts you owe and who you owe them to is an important part of financial responsibility.

Set up payment reminders or automatic payments to avoid late or missed payments.

Keep records of your creditors, the amounts you owe, and the date and the amount of any payments you make.

Additionally, monitor your credit regularly to be aware of any late payments or debt collection activities that may appear on your credit report.

When you keep your information organized and easy to reference, you protect yourself, your money and eventually overcome debt.

Michael Keenan contributed to the reporting for this article.

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