What should I do when a credit card debt collector contacts me?

Receiving a call from a debt collector can be a stressful experience. After all, if your debt is in collections, you may be worried about the potential impact the delinquent debt can have on your finances, the possibility of legal action by the debt collector and how to handle the communication effectively. That's a legitimate concern considering that the way you handle initial contact from a debt collector can significantly impact your financial future. 

Your initial response to a debt collector's contact can set the tone for the entire debt resolution process. Making the wrong moves — such as immediately acknowledging the debt or making promises to pay, for example — could complicate your situation or even restart the statute of limitations on old debts. On the other hand, understanding your rights when your credit card debt is in collections and taking appropriate action can help you maintain control of the situation and work toward a resolution that fits your circumstances.

Millions of Americans face similar situations with debt collectors every year and there are established protocols in place to help you navigate this challenge. So how exactly should you handle being contacted by a debt collector about old credit card debt? 

Find out what your debt relief options are here.

What should I do when a credit card debt collector contacts me?

Here are a few moves you should make when you're contacted by a debt collector about your credit card debt:

Stay calm and gather information

The first thing to do when a debt collector contacts you is to remain calm. Take a deep breath and prepare to gather as much information as possible during the call. In general, debt collectors are required by law to provide specific details about the debt, including the original creditor's name, the amount owed and other relevant information, all of which you'll need to determine a path forward. 

During the call, you should also write down the debt collector's name, the company they represent and their contact information. You also have the right to request a written validation notice, which will confirm the debt amount, the original creditor and your rights in the debt collection process. The Fair Debt Collection Practices Act (FDCPA) mandates that debt collectors provide this notice to you within five days of the initial contact.

Learn more about how to tackle old credit card debt today.

Confirm the debt and verify its accuracy

After receiving the validation notice, take time to verify the debt's accuracy. Mistakes can happen, and debts may be sold multiple times, leading to possible discrepancies, so review the information carefully to confirm that the debt is yours and that the amount is correct. If there's an error, you have the right to dispute the debt in writing within 30 days of receiving the validation notice. The debt collector must cease collection efforts until the dispute is resolved or the debt is verified as accurate.

Understand your rights (and what to expect)

Debt collectors must adhere to strict guidelines under the FDCPA. They cannot harass, threaten or deceive you. Familiarize yourself with your rights to feel empowered in your interactions with the collector. For example, debt collectors cannot:

• Call before 8 a.m. or after 9 p.m.
• Contact you at work if you've told them not to
• Use threatening or abusive language
• Make false statements or misrepresent the debt
• Contact others about your debt except to locate you

Come up with a plan of action

Start determining a plan of action by assessing your financial situation, including your income, expenses and any other debts. This will help you determine how much you can realistically afford to pay each month. From there, you can weigh your options, like paying the debt in full, negotiating a reduced amount or exploring other debt relief options. 

What debt relief options should I consider?

If you decide to try and use debt relief to get rid of the debt, here are the options you may want to consider:

• Debt consolidation: With debt consolidation, you combine multiple debts into a single loan, generally with a lower interest rate. This could result in a lower monthly payment and make it easier to keep track of your debt. 
• Debt settlement: Another option is to negotiate with the debt collector to settle the debt for less than the full amount, which is known as debt forgiveness or debt settlement. Some people choose to work with debt relief companies that negotiate on their behalf, while others choose to negotiate directly. 
• Credit counseling: Many credit counseling agencies offer debt management plans, agreements where the agency negotiates with your creditors to reduce interest rates and fees. This can be a useful option if you need structured assistance but don't qualify for debt consolidation or settlement.

The bottom line

Facing a credit card debt collector can be intimidating, but with the right approach, you can turn it into an opportunity to regain control over your finances. Start by gathering information, verifying the debt and understanding your rights. From there, create a plan and explore debt relief options such as consolidation, negotiation or credit counseling to find a solution that aligns with your financial goals. Being proactive and informed can make the difference in managing your debt and building a stronger financial future.