Answer

A debt I don't recognize is in collections — what do I do?

If a collector contacts you about a debt you don't recognize, do not pay it or admit it's yours yet. Instead, send a written debt-validation request -- a right under the FDCPA. If you dispute the debt in writing within 30 days of the collector's first notice, the collector must pause collection until it verifies the debt by confirming the amount and the original creditor. Paying or even acknowledging an unfamiliar debt can be a mistake: it can be someone else's account, identity theft, a duplicate of a debt already sold, or an old debt past the statute of limitations that a payment could revive. A legitimate collector can prove its claim; one that can't is not supposed to keep collecting or report the debt as valid.

RC
By Renee Calderon — Consumer debt & rights writer

Seeing a collection account you don't remember — on a call, a letter, or your credit report — is unsettling, but it is also common. Debts are bought and sold repeatedly, records get garbled, and sometimes the account isn't yours at all. The worst thing you can do is pay it just to make it go away. The right first move costs nothing and shifts the burden onto the collector to prove the debt is real.

First rule: don't pay or admit it yet

Paying — or even saying "yes, that's mine" — can work against you when you don't recognize a debt. It can be:

Because of these traps, the safe response is to make the collector prove the debt before you do anything.

Send a debt-validation request — in writing, within 30 days

The FDCPA gives you the right to request verification. A collector must send a written validation notice with key details about the debt, typically within five days of first contacting you. From the date you receive that notice, you have a 30-day window to dispute the debt in writing. The CFPB explains that if you dispute in writing within those 30 days, the collector must pause collection until it provides verification — confirming information such as the amount owed and the name of the creditor the debt is owed to.

This is a debt-validation letter, and you don't need a lawyer or special form — the CFPB and FTC publish free sample letters. Keep it short: state that you dispute the debt and are requesting verification, and that you are not acknowledging that the debt is valid. You can ask for more than the minimum — the original creditor, the account number, and proof you are the right debtor. Send it so you have proof of mailing, and keep a copy. You can still send a validation letter after 30 days, but you may lose the automatic pause on collection, so act promptly.

Check your credit report and watch for fraud

If the collection shows on your credit report, pull your free reports from annualcreditreport.com and compare. If the account isn't yours — or you suspect identity theft — you have separate rights under the Fair Credit Reporting Act to dispute inaccurate information with the credit bureaus for free, and you can report identity theft at the FTC's IdentityTheft.gov. Be wary of "phantom debt" scams: a caller who can't or won't put the debt in writing, pressures you to pay immediately by gift card or wire, or refuses to give a company name and address is a red flag, not a real collector.

What happens next

If the collector verifies the debt and it really is yours, collection can resume and you decide how to respond — pay in full, set up a payment plan, or, for unsecured debt such as credit cards, try to negotiate a settlement for less than the balance. Keep in mind that collectors are not required to accept a settlement, that a settled or delinquent account can lower your credit score, and that forgiven debt over $600 can be reported on a 1099-C as taxable income. If the collector can't verify the debt, it is not supposed to keep collecting it or report it to the bureaus as valid — and if it does anyway, you can file a complaint with the CFPB or FTC and, where appropriate, consult an attorney.