How to stare down — and maybe scare off — a bill collector

Hiya —

Claire here. A few weeks ago we put out an episode about a listener, Meagan, and her more than two-year fight against a medical bill she didn’t owe.

Meagan won after she threatened to sue the hospital, citing a federal law — the Fair Debt Collection Practices Act (FDCPA).

Meagan’s story seemed like a good occasion to kick off a series about our rights — and our options — in dealing with debt collectors. Some of them are powerful.

Important to say: We’re not lawyers, and this isn’t legal advice. But we’ve done some homework.

We’ve explored these rights before on the podcast, with help from Shaunna Burns — a former debt collector and avid TikToker — and Jenifer Bosco, a senior attorney with the National Consumer Law Center (NCLC).

For this series, we’ve gone back to the NCLC to brush up. This time, we spoke with April Kuehnhoff, another senior attorney there.

Let’s get into it, starting with our first big right under the FDCPA, and how to use it:

It’s on the debt collector to prove you owe this debt. Tell ‘em: Put up or shut up.

When a collector calls, you can say, right away: Until you show me all the receipts, I’m not even going to think about paying anything. Or even talking with you, or answering any questions.

That’s because the law requires debt collectors to give you information proving this is debt you owe — including the amount of the alleged debt, the name of the creditor you owe it to (probably your doctor’s office or hospital), and a deadline for disputing the debt.

Remind them that federal law requires them to provide all of that info, in writing, within five days of contacting you.1

That’s step one.

Step two: Go on offense.

You have the right to dispute this alleged debt. Which is exactly what you’re going to do.

You’re going to demand that they verify their claim: prove to you that this debt is valid, and that they have the right to collect it.

If they can’t, they may just back off.

Either way, just by registering your dispute, April says the FDCPA gives you some immediate protections.

Collection actions — calls, emails, letters, all of it — have to stop until the collector verifies the debt. If the debt has already been reported, it’s supposed to be listed as disputed.

So you’re going to demand that verification.

You tell them: You want a copy of any agreement you allegedly signed. You want copies of original bills. Stuff like that.

And while you’re at it, you want to know: Are they even licensed to collect debt in your state? If so, what’s their license number?

(The law doesn’t require them to give you all this information right now, but if they ever sued you over this debt — their ultimate recourse — you could demand they show a judge this kind of stuff. And if they couldn’t show it, the judge would likely rule against them.)

You’re going to put these demands in writing — NCLC has a great template you can download as a PDF or an editable Word doc.

This sentence is key: Please treat this debt as disputed until you provide the information requested.

April suggests sending your letter certified mail, and keeping a copy.

Once you make your demands, here’s three ways things could go:

One: The collector sends you documentation that seems legit: You owe this. Ugh, bummer, but it’s still good you checked. And — as we’ll cover in a future First Aid Kit — you may be able to negotiate a deal.

Two: The collector sends you documentation, but the charges don’t look right to you.

Maybe they’re from a provider you saw, but for a service you didn’t receive. Maybe you paid it already. Maybe insurance did (or was supposed to). Maybe it just doesn’t look familiar at all.

In this case, you’ll want to actively dispute the debt — fight to get it wiped out entirely. Again, we’ll cover that process in a future First Aid Kit.

For now, we’ll focus on scenario three: The collector doesn’t send you much of anything.

They may have nothing to show. Sometimes, collectors will buy debt from the original creditor or other collectors for pennies on the dollar. And those buyers and sellers aren’t always careful to get a paper trail.

April says some debt collectors just back off at this point.

If they don’t back off, you’re in a strong position

As we’ve noted: If they take you to court, there’s every reason to think that they’d lose.

Or, they could keep bugging you or attempting to place stuff on your credit report — all the things debt collectors do that make your life difficult.

In which case: You could consider threatening to sue them for violating the FDCPA. We won’t go into that now, but April says your demand letter could be ammo.

To recap: Your demand for verification helps you know where you stand — and puts any shady on operator notice that you’re not an easy mark.

Best case, you’ve scared them right off. Worst case, you’re in a strong position to fight.

In later installments, we’ll get back to those other two scenarios:

1. They send documentation of a debt you recognize.

2. They send documentation of… something you don’t think you owe.

In either case, you’ve got some options.

Meanwhile, if you need more now:

• The NCLC has a bunch of cool resources for dealing with debt collectors. You can download their book Surviving Debt for free. It’s updated yearly. Chapter 2 is a gold mine.

• It can be really useful to take notes during calls with a debt collector, or right after. The site Debt Collection Answers has a downloadable worksheet for taking notes, with helpful prompts.

• Our podcast episode with Shaunna Burns and April’s colleague Jenifer Bosco has more tips on dealing with debt collectors.

Here’s what we’re reading and listening to this week:

1. Since 2019, the federal government has pushed insurers and hospitals to make the prices they negotiate for medical care public. NPR reports on how it’s going so far.

2. Last week on the show, we talked about the medical drama “The Pitt” and what it gets right about the financial forces that create problems in the ER, like long wait times and expensive bills.

3. And … also last week, Science Friday spoke with a medical consultant for “The Pitt” about how accurately the show depicts work in an ER. Great minds think alike!

That’s all from me today. See you next week.

— Claire