Why is a Debt Collector Calling Me When I Have No Debt?

It can be stressful and confusing to get calls from debt collectors, especially if you don’t owe any money. So why might they be calling you if you don’t owe any money? Here are some possible reasons and what you can do about it.

You May Have Been a Victim of Identity Theft

Getting calls from debt collectors about debts that aren’t yours is often caused by identity theft. If someone gets their hands on your personal information, they can use it to get credit cards or loans in your name and then not pay them back. Most of the time, you won’t find out until the debt has been sent to collections and people start calling you.

Some signs you may be a victim of identity theft if you get calls for unknown debts include:

• You check your credit report and see accounts you never opened
• You start getting bills or collection notices for purchases you never made
• Your personal information is compromised in a data breach

If you think your identity has been stolen, get a copy of your credit report right away and look for any accounts that aren’t yours. After that, put a fraud alert and credit freeze on your reports to keep the damage from getting worse. To dispute the fake debts, you’ll need to report identity theft to the FTC and your creditors.

The Debt Collector Has the Wrong Person

Debt collectors frequently call the wrong people who have similar names or information to the real debtor. For instance, if the debtor’s phone number is one digit off from yours, the collector may accidentally call you instead. Or the collector may have an incorrect or outdated address that matches your name.

When these calls come in, just tell them they have the wrong person and that you do not owe any money. Ask to see proof of the debt to make sure the caller is giving you wrong information. The Fair Debt Collection Practices Act says that debt collectors must stop calling the wrong person when they are told to.

An Old Debt Was Resold or Reassigned

Your information can stay in debt collection databases for years. Debts are often resold multiple times to different collection agencies. So you may start getting calls for a debt you paid off long ago or don’t recognize.

When a debt collector contacts you trying to collect an old or unknown debt, request written validation of the debt right away. This should include your name, the creditor’s name, the amount owed, and the date of the debt. Review the information carefully when received and dispute the debt in writing if you have records showing it’s invalid or paid.

You’re Listed as a Contact for Someone Else’s Debt

Debt collectors are allowed to contact third parties to try to locate the actual debtor. So you may be getting calls because the collector thinks you’re a relative, friend, coworker, or associate who might have contact information for the debtor.

If this happens, let the collector know you do not actually know the person they are asking for and request they no longer contact you. Under the FDCPA, the collector should not discuss the debt details with you or continue calling once informed you aren’t a viable contact.

What to Do When You Get Debt Collector Calls for No Debt

If you receive calls from one or more debt collectors about debts you don’t owe, follow these steps:

• Ask for validation of the debt – Request in writing that the collector validate the debt by providing your name, the total amount owed, the name of the original creditor, and the date of the original debt. This can help you identify if it’s identity theft or not your debt.

• Dispute invalid debts – If the collector can’t validate the debt is actually yours, send a written dispute explaining it’s not your debt and requesting verification it belongs to you.

• Tell collectors to stop contacting you – Under the FDCPA, collectors must stop calling you if you send a cease and desist letter. But continue disputing invalid debts in writing.

• Review credit reports – Get free annual credit reports to check for any accounts opened fraudulently in your name and dispute unauthorized debts.

• Consider legal help – If collectors keep calling about invalid debts or violate consumer protections, consult with a consumer lawyer about your options.

Beware of Debt Collection Scams

Some supposed debt collectors who call out of the blue could actually be scammers. Be wary if collectors get aggressive and demand immediate payment without receiving validation first. Other red flags include:

• Threats of violence, arrest, or criminal charges
• Refusal to provide a mailing address or company details
• Demand you pay with prepaid cards, gift cards, money transfers, etc.
• Calling repeatedly and continuously harassing you
• Misrepresentation and lying about the debt details

A legitimate collector should be upfront and provide information to validate the debt. Under no circumstances should you pay anything until you have confirmed the calls are not a scam.

How to Avoid Getting Debt Collector Calls

To reduce the chances of getting debt collector calls, be proactive:

• Pay all bills on time to avoid debts going to collections. Set up alerts if needed.
• Be vigilant about checking credit reports frequently for any suspicious activity.
• Place a fraud alert or credit freeze if your information is exposed in a breach.
• Avoid sharing sensitive data like Social Security numbers unless absolutely necessary.
• Shred financial documents and watch for missing mail to prevent identity theft.
• Keep records of debts paid off in case collectors re-attempt to collect old debts.

Getting calls from debt collectors about debts you don’t owe can be perplexing and concerning. But being aware of the potential reasons it occurs allows you to take action. Verify debts, dispute invalid collections, watch for fraud, and know your rights under federal law. With vigilance, you can resolve the situation and halt further unwanted calls.