What to Do If a Debt Collector Contacts You About a Debt You Already Paid

A collection notice for a debt you already paid is unsettling. Do not ignore it, but do not send a stranger your banking records right away. The Consumer Financial Protection Bureau (CFPB) says to make sure the person contacting you is a legitimate collector before providing proof of payment.

Start with the validation information. Collectors generally must tell you the creditor's name, the amount claimed, and how to dispute the debt. The notice can help you identify the account and the end date of the 30-day dispute period. If you believe the debt is not yours, is incorrect, or was paid, you can ask for more information or dispute it in writing.

If you are confident the collector is legitimate, send copies of records showing payment, such as canceled checks, credit card statements, or correspondence about a settlement. Keep your originals. If you do not have the records, ask the creditor you paid for copies or confirmation.

A written dispute within 30 days after receiving the validation information has a specific effect: the collector cannot contact you to collect the disputed debt until it responds with verification. The CFPB recommends keeping a copy of the dispute and generally sending it by certified mail; a return receipt can document delivery. Keep the collector's letters, copies of what you send, and notes with the dates and times of calls.

A dispute does not automatically erase a debt or settle every question about it. If the collector keeps pursuing a debt you believe was paid, you can submit a complaint to the CFPB or seek advice suited to your circumstances.

Source: CFPB, "What can I do if a debt collector contacts me about a debt I already paid or don't think I owe?" (last reviewed August 2, 2023): https://www.consumerfinance.gov/ask-cfpb/what-can-i-do-if-a-debt-collector-contacts-me-about-a-debt-i-already-paid-or-dont-think-i-owe-en-1403/