How To Deal With A Debt You Don't Think You Owe

Increasingly consumers report being contacted by a debt collector about an obligation they insist they do not owe.

"On November 9, 2011 I received a bill for $7.45 for Parlee Tatem Radiologic Associates dated November 17, 2010," Alice, of Doylestown, Pa., told ConsumerAffairs.com. I don't recall such a debt; never received a bill previously for this. I call the number on the letter both that evening and the following Monday morning. Both times were when their office was listed on the letter as being open. But there were just recordings and then a hang-up."

Alice believes the request for payment is a scam, since she says she would certainly remember if she had used the medical services company. It could be a scam, or it could simply be a mistake. Either way, she should not pay it until she gets more information, and under the Fair Debt Collection Practices Act, she is certainly entitled to more information.

Alice's rights

According to the Federal Trade Commission (FTC), which drafted the law, every debt collector must send you a written “validation notice” telling you how much money you owe within five days after they first contact you. This notice also must include the name of the creditor to whom you owe the money, and how to proceed if you don’t think you owe the money.

If you send the debt collector a letter stating that you don’t owe any or all of the money, or asking for verification of the debt, that debt collector must stop contacting you. You must send that letter within 30 days after you receive the validation notice.

But a collector can begin contacting you again if it sends you written verification of the debt, like a copy of a bill for the amount you owe.

Assuming Alice determines she does not owe the debt but the debt collector does not agree and refuses to stop calling her, is there any way for her to make them stop? Yes.

Stopping the calls

According to the FTC, Alice should write a letter to the debt collector explaining that she does not owe the money and insisting that they stop contacting her. She should make a copy of the letter, sending the original by certified mail, and pay for a “return receipt” so you’ll be able to document what the collector received.

Once the collector receives your letter, they may not contact you again, with two exceptions: a collector can contact you to tell you there will be no further contact or to let you know that they or the creditor intend to take a specific action, like filing a lawsuit. Sending such a letter to a debt collector you owe money to does not get rid of the debt, but it should stop the contact. The creditor or the debt collector still can sue you to collect the debt.

Since the amount is less than $8, why not just send them a check? If the debt collector is, in fact, a scammer, sending them a check could give them access to Alice's bank account.