Contacted by a debt collector? Here’s what you need to know

Debt collection calls have increased by over 200% in the past year, with over 194,000 of them being reported as fraudulent or abusive and threatening, according to data from the Federal Trade Commission.

Thomas Nitzsche, a financial educator at Money Management International, said the increase in reports of harassment from debt collectors could be linked to the new administration, which has tried to gut the federal government’s consumer watchdog agency since President Donald Trump took office in January 2025.

“Debt collectors may feel that the current administration is softer on regulations,” he said. “The Consumer Financial Protection Bureau has been virtually eliminated, so third-party debt collectors might feel more emboldened for bad behavior.”

To protect yourself from scammers and make the most informed financial decisions, it’s essential to know what to expect when you answer a call from a debt collector and how to tell if it’s real.

Here’s what you need to know:

What to do if you get a call from someone claiming to be a debt collector

Getting a call from someone claiming you owe money can feel overwhelming. But, Nitzsche said the first thing to do when a debt collector calls is simple: Stay calm.

If the person on the other end of the phone refuses to provide written verification of the debt, demands payment via wire transfer or pre-paid cards, threatens arrest or legal action or is asking about debt you don’t recognize or owe, the call could be a scam.

Be sure to always ask the caller to send written proof of the debt, and contact your original creditor to verify the information. With scams on the rise, it’s important to double check all details and even if the call is legitimate, be sure to understand your rights to avoid feeling pressured or misled.

Here’s what information debt collectors must provide

Debt collectors are required to give you information about the debt they are calling about during the first communication or within five days of the first contact. This information must include:

• The collector’s name and mailing address.
• The name of the creditor you owe to.
• The amount you owe including interest, fees, payments and credits.
• Information on what to do if you believe the debt is not yours.
• Information about your debt collection rights.

What debt collectors cannot do

Federal rules limit how and when debt collectors can contact you. In general, collectors cannot:

• Contact you before 8 a.m. or after 9 p.m. unless you agree.
• Contact you at work if you tell them you’re not allowed to get calls there.
• Email or text you if you ask them to stop.
• Call you more than seven times within a seven-day period.
• Call you again within seven days after speaking with you about a particular debt.
• Private message you on social media if you ask them to stop.

A rise in reports of collectors violating the rules may stem from weaker government oversight.

Sen. Elizabeth Warren, the senior Democrat on the Senate Banking Committee, has accused the Trump administration of costing families billions of dollars as it tried to dismantle the Consumer Financial Protection Bureau.

According to a report released by Warren’s office in February, the bureau has ended enforcement actions, dropped settlements and rescinded rules. The changes cost Americans at least $19 billion, the report charges.

The Consumer Financial Protection Bureau did not respond when asked about the rise in the number of debt collectors disregarding rules and regulations, as well as the increase in harassment claims.

Your debt repayment options

The key to handling debt collector calls, according to Nitzsche, is to become an expert on your personal financial situation.

“There’s a lot of misinformation around debt solutions, what’s possible and what’s not,” he said. Seeking help from experts can help you better understand your options.

Often, if you reach out to your creditor, it may lower your interest rate or help you create a manageable payment plan. Many nonprofit credit counseling agencies like Money Management International, American Consumer Credit Counseling, and GreenPath Financial Wellness offer free or low-cost advice that can assist you in budgeting or making a debt management plan.

If you prefer a more private option, Nitzsche suggests anonymous debt groups on platforms like Reddit or even asking for advice from ChatGPT.

The artificial intelligence chatbot can write 5-paragraph essays and even pass business school exams. But can it help you with your 1040 Form? We asked the chatbot some tax questions and had a certified public accountant check ChatGPT’s work.