How to Prove a Debt Is Not Yours in Four Steps

Dealing with a debt collection letter or phone calls from debt collectors can be stressful.

When this happens, you may be tempted to pay the account to make the problem go away. But what if the debt isn’t yours?

Don’t simply agree to pay it. Learn how to prove a debt is not yours — as well as stop debt collection activities and prevent further damage to your credit.

Key points

  • You have to act quickly — you have 30 days to dispute the debt
  • If you believe you’ve been a victim of identity theft, immediately freeze your credit and contact your credit card issuers
  • The creditor is legally required to verify the debt — take one of the steps below to force them to do it
  • If the debt is truly yours, paying it off is your responsibility

How to prove the debt is not yours

It can be shocking when you get phone calls from a debt collector about an old debt you don’t recognize or remember. This happens more often than you might think. It could happen for many reasons, including identity theft, name mix-ups or account reporting errors. If a debt collector has contacted you about a debt you don’t recognize or an account you’ve already paid off, it might be a mistake.

There are several ways to prove a debt doesn’t belong to you, but the fastest — and easiest — way depends on the type of debt and how you learned about it.

With that said, here are the best ways to prove a debt is not yours.

1. Demand written notice of your debt

This is most important. Debt collectors are legally required to provide specific information about the debt they’re trying to collect. These are also sometimes called debt validation letters. This information should include the following:

  • The name of the creditor
  • The amount of the debt
  • Key dates surrounding the debt
  • Any other documents or information from the original creditor
  • Your options for dealing with or disputing the debt

First, ask if the debt validation letter has already been sent to you. If it has not, tell the debt collection agency (or your original creditor) that you will not discuss the debt until you have the letter in hand. If they fail to send the letter, you can send a letter instructing them to stop attempting to collect money from you because the debt is invalid.

READ MORE: What is a debt validation letter?

2. Send a debt verification letter

Once you receive the debt validation letter from the debt collector, you must respond in writing to dispute the debt or request more information.

Though the two terms are often used interchangeably, debt validation letters and debt verification letters are two very different tools. As already mentioned, the debt validation letter is sent to you by the debt collector. The debt verification letter is sent by you to the debt collector. The letter you send can either dispute the debt entirely, or request additional information, but if you believe the debt is not yours after reading the validation letter, you must complete this step.

Pro tip: Once you receive a debt validation letter, you have 30 days to send the debt verification letter. If you miss the deadline, the debt collection agency or creditor will assume the debt is actually yours and continue pursuing payment.

The Consumer Finance Protection Bureau (CFPB) has several sample letter templates you can use for debt collectors trying to collect money from you.

If the debt collector fails to respond to your verification letter and continues collection efforts, it is a violation of your legal rights under the Fair Debt Collection Practices Act. You then have a right under the FDCPA to countersue your debt collector for up to $1,000 per violation, plus fees.

Pro tip: Make sure to make your request in writing, and send it by certified mail with a receipt requested, to ensure that the debt collector has gotten your request.

READ MORE: How to deal with debt collectors

3. Pull and inspect your credit report

Next, obtain copies of your credit report from each of the three credit reporting bureaus: Equifax, TransUnion, and Experian. You’re entitled to a free copy of each credit report once a year through AnnualCreditReport.com. You can request your report through the bureaus directly.

Once you have your credit reports in hand, review them carefully for any errors or potentially fraudulent activity. Make sure any accounts on your reports are yours. Compare them side-by-side to ensure that the information is consistent.

Pro tip: If you believe you have been a victim of identity theft, contact your credit card issuers immediately, freeze your credit and file a police report with your local authorities. The police will advise you on your next steps.

Dispute any errors with the appropriate credit bureau either online or by phone:

Pro tip: If the debt collector cannot prove you owe the debt, they must remove the negative marks from your credit report. Once removed, your credit score should improve.

READ MORE: What is a 609 dispute letter?

4. Officially dispute the debt

If you find a debt you suspect is not yours, dispute it in writing with the original creditor and debt collector. You can send a dispute letter to both parties by certified mail. Be sure to include the following information:

  • Your full name and contact information (ex. address and phone number)
  • Any account numbers and confirmation numbers (if applicable)
  • The reason for disputing the information on the report
  • A copy of your credit report highlighting the error
  • Any other supporting documents

Pro tip: Once you send a written dispute, the creditor or debt collector cannot contact you or try to collect money until they’ve verified the debt is yours. During this time, do not make any payments on the debt in question.

What to do if the debt is legitimately yours

While trying to prove a debt is not yours, you might find that you legitimately owe the money. In that case, you have a couple of options.

Has the statute of limitations passed?

Another thing you can do is verify if the debt is still within its statute of limitations. If it’s not, the debt is considered “time-barred.” This means the debt collector can no longer file a lawsuit or take other legal action against you.

The statute of limitations varies by state and contract type. In North Carolina, for example, it’s three years on most unsecured debts, including credit card and auto loan debt. In Texas, meanwhile, it’s four years on most debts.

If the debt is legitimately yours, you’ll still be responsible for repaying it even if the statute of limitations has expired. However, you mustn’t restart the timeline by paying the account. If so, the clock will be restarted and the debt collector will regain the ability to sue you.

READ MORE: Will this 11-word phrase stop debt collectors?

Pay the debt

If you forgot about the debt and have the money, the best next step is to pay it. Make an offer to the debt collector that you will repay the debt in full and request that they remove the delinquency from your credit report. Many will also accept a payment plan, or be willing to settle the debt for a lump-sum payment that’s lower than the total amount you actually owe.

Pro tip: You can speak with your creditor or debt collector and negotiate a payment plan that suits your financial situation. Depending on your circumstances, the lender might agree to reduce monthly payment amounts, waive late fees, or lower interest rates. If they agree to a payment plan, get everything in writing.

If you cannot afford to repay the debt, and your creditor refuses to negotiate a payment plan, see if you qualify for different forms of debt relief. This includes:

  • Debt settlement: With a debt settlement plan, your creditors agree to reduce what you owe by a certain amount. You’ll need to repay the remaining amount, but your monthly payments and total debt amount should be lower.
  • Debt Management Plan: Debt management plans typically last three to five years. They work by taking your eligible unsecured debts and enrolling them into one program designed to help you pay them off over time. You’ll typically need to go through a nonprofit credit counseling agency for this.
  • Debt consolidation loan: If you have good credit, you could qualify for a debt consolidation loan or 0% APR balance transfer credit card. You could combine several high-interest debts into one loan (or card) with one monthly payment. This can make it easier to avoid late fees and save you money in interest fees.

Have your rights been violated?

The Fair Debt Collection Practices Act is a federal law that protects consumers from unfair, abusive, threatening or deceptive debt collection practices. If a debt collector contacts you, don’t feel threatened or offer personal information. Instead, ask them for some identifying information, such as:

  • Company name and contact information
  • Debt collector’s name
  • Original creditor’s name and contact information
  • Debt in question

Several federal and state laws protect you from unlawful practices and scams. The Federal Trade Commission (FTC) has additional information about spotting and dealing with fake or abusive debt collectors.

File a complaint with the Consumer Financial Protection Bureau

If you’re dealing with a particularly difficult debt collector, or if they refuse to validate a debt or cease their collection efforts, file a complaint with the CFPB. The easiest way to do this is online, but you can call them at (855) 411-2372. You should also contact your state attorney general’s office.

Make sure you include all relevant information in your complaint, including:

  • Important dates (ex. each time they’ve contacted you)
  • Details about the debt collector like their name, agency, and contact information
  • Any relevant documents you’ve received
  • Your name, address, phone number, and email address

Indicate how you’d like the situation to be resolved, too. You can also include any methods you’ve already taken to try to resolve the matter yourself.

The bottom line

It might be tempting to ignore harassing calls from debt collectors or creditors, but this could make your situation worse.

Failure to respond is like telling the debt collector you agree the debt is yours, even if it’s not. It could also damage your credit report or cause the debt collector to take legal action against you. If they end up suing you and you skip out on an important court date, the judge could garnish your wages or bank account, or you could even end up in jail for contempt of court.

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