Quick Answer: If you were wrongfully sent to collections, immediately request debt validation in writing and dispute the account with both the collection agency and the credit bureaus. Keep detailed records and consider contacting a consumer rights attorney if the issue isn’t resolved.
Finding out you’ve been sent to collections is stressful enough. But when it happens by mistake — whether due to a clerical error, identity theft, or miscommunication — the situation can feel overwhelming and unfair. Fortunately, you have rights and options to fix the issue and protect your financial health.
In this article, we’ll walk through exactly what you should do if you were incorrectly sent to collections, how to handle situations where you weren’t even notified, and how to safeguard your credit.
Step 1: Don’t Panic
If you discover you’ve been sent to collections incorrectly, stay calm. Acting quickly but carefully is key. Rushing to pay a debt that you don’t actually owe can hurt you financially and legally.
Take a breath and prepare to gather evidence before doing anything else.
Collectors must follow the Fair Debt Collection Practices Act (FDCPA), a federal law that protects consumers from abusive, deceptive, and unfair debt collection practices. This law also gives you the right to dispute debts and demand verification.
Step 2: Request Debt Validation
Your first move should be to send a written request for debt validation to the collection agency. Under the FDCPA, you have the right to ask the collector to prove the debt is yours and that they have a legal right to collect it.
When requesting validation:
- Send the letter within 30 days of the first notice from the collector (or as soon as you learn about the debt).
- Send it by certified mail with a return receipt requested, so you have proof they received it.
The collector must then provide information such as the name of the original creditor, the amount owed, and any supporting documentation. If they can’t validate the debt, they are required to stop collection efforts.
Step 3: Review Your Credit Reports
After finding out about the collection, pull copies of your credit reports from the three major credit bureaus: Experian, Equifax, and TransUnion.
You’re entitled to one free report from each bureau every week at AnnualCreditReport.com, and additional free reports are available if you’re disputing information.
Check to see if the collection account appears and whether there are other errors, such as:
- Incorrect account balances
- Duplicate accounts
- Accounts that don’t belong to you
If you find inaccuracies, it’s important to dispute them right away.
Step 4: Dispute the Error
If the collector cannot validate the debt — or if you can prove it’s an error — you can file a dispute with the credit bureaus. Each bureau has an online dispute process, but you can also mail a written dispute for a stronger paper trail.
When filing your dispute, include:
- A clear explanation of the error
- Copies of any supporting documents (e.g., payment records, fraud reports)
- A request for the inaccurate collection account to be removed
Bureaus typically have 30 days to investigate and respond. If they agree the debt is inaccurate, they will remove it from your credit report.
Step 5: Contact the Original Creditor
Sometimes, mistakes originate with the original creditor, not the collection agency. It’s smart to reach out to the company you supposedly owed money to and ask for clarification.
Explain the situation calmly and provide any proof you have. If they agree it was an error, ask them to recall the debt from collections and confirm in writing that they’ve corrected the mistake.
Step 6: Document Everything
Throughout this entire process, keep detailed records. Save copies of:
- All letters and emails
- Certified mail receipts
- Notes from phone calls (including dates, times, and the names of people you spoke with)
These records are crucial if you need to escalate your complaint, file a lawsuit, or seek legal help later on.
Step 7: Monitor Your Credit Going Forward
Once you’ve dealt with the error, it’s important to monitor your credit regularly. Set reminders to check your credit reports every few months. You can also sign up for credit monitoring services to alert you quickly if new collection accounts appear. (You can check your credit for free right here at Credit.com).
Keeping an eye on your credit will help you catch any future mistakes early before they damage your financial reputation.
If You’ve Been Sent to Collections Without Notice
One particularly upsetting scenario is when you’re sent to collections withoutever receiving notice from the original creditor.
While creditors are not legally required to provide advance notice before sending a debt to collections, they typically will try to collect the debt directly first.
If they cannot reach you or you have missed multiple payments, they may send your account to a debt collection agency without prior notification.
Being incorrectly sent to collections is frustrating and unfair, but you don’t have to accept it. You have the right to demand proof, dispute errors, and even take legal action if necessary. Acting quickly, staying organized, and standing up for your rights can help protect your credit and your peace of mind.
