Stop Harassing Collection Calls on a Paid Debt

by Gary Foreman

You’ve paid the debt but the collectors keep calling. Take these steps to stop harassing collection calls on a paid debt.

Dear Dollar Stretcher,
I had an outstanding judgment against me for $1,000 to pay off an apartment lease that was broken when my ex-husband and I divorced. The total amount owed before the judgment was $1,700. The third-party collector calling me insists that I pay that amount. The court said I owe $1,000, which has been paid in full. What can I tell the collector to make him go away?
Sheri

A Simple Step To Get a Collection Agency To Stop Calling

Fortunately for Sheri, she can take control of this situation without too much trouble. Her biggest ally is something called The Fair Debt Collection Practices Act. It’s a federal law that governs what debt collectors can do.

It’s easy to get a bill collector to stop calling. All Sheri needs to do is notify them in writing that she doesn’t want to hear from them anymore. She doesn’t need to give them a reason. A simple “Please don’t contact me anymore” is sufficient. Certified mail is best. After the letter is received, the collection agency can only contact her to let her know that they won’t be calling her again or to inform her of pending legal action.

Even if Sheri still owed the money, she has quite a bit of protection under the law. The same request to stop calling works even if you still owe the debt. Obviously, stopping the calls doesn’t relieve you of the responsibility of paying your debt.

What a Collection Agency Can or Can’t Do

The Fair Debt Act regulates collection agency tactics. It’s acceptable for them to contact you by mail, phone or in person. But they cannot call before 8 a.m. or after 9 p.m. If you tell them your employer doesn’t allow personal calls, they can’t contact you at work.

They can’t embarrass you. They can only ask others for your phone number or mailing address. They can’t say that you haven’t paid your bills.

When they contact you, they cannot use foul language. No physical threats to you or your reputation. They can’t say that you’ll be thrown in jail or demand a post-dated check. In short, all they can really do is bug you a bit to collect the debt. Please understand that I’m not saying that Sheri or anyone else shouldn’t pay their debts. I’m just pointing out that you don’t need to tolerate abusive collection practices.

Related: Protect Yourself From Abusive Debt Collectors

Make Sure the Debt Is Showing Paid on Your Credit Report

Getting the debt collector off her back is only the first issue for Sheri. The second one is to make sure that her reputation isn’t being harmed. She’ll need a good report the next time she applies for credit.

Sheri needs to find out why a collection agency is contacting her. Either the landlord isn’t aware that she’s paid them fully, or there has been a miscommunication between the landlord and the collection agency. The fact that a judgment is involved could be the cause of the confusion. But it’s also a good way for her to document how much was owed.

In any case, Sheri’s credit score could be seriously hurt if incorrect data is allowed to stand without challenge in her credit file. That could make getting credit more expensive or even affect her ability to rent another apartment.

“The Fair Credit Reporting Act (FCRA) requires each of the nationwide credit reporting companies – Equifax, Experian, and TransUnion – to provide you with a free copy of your credit report, at your request, once every 12 months.” (source: Federal Trade Commission) To order, visit annualcreditreport.com. Or complete the Annual Credit Report Request Form and mail it to:

Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281.

Do not contact the three nationwide credit reporting companies individually.

Once Sheri gets the report, she’ll need to ensure that the lease is either not mentioned at all or is shown as closed by full payment. If her landlord wasn’t a corporation, it’s possible that she won’t find an entry in the report. No entry is good. It’s a bad one that she’s looking for.

Correcting Your Credit Report

If she does find that it shows the lease as still owed or in dispute, she’ll need to write two letters. One to the former landlord asking him to notify the credit bureau that he’s been paid.

A second letter to the credit reporting agencies should explain what happened. Sheri will want to include copies of the court decision and her canceled check proving payment. At that point, the credit reporting agency is required to change the entry status and include her side of the story.

Since Sheri is recently divorced, she should also check the credit report for any other problems related to her ex-husband. Problems can occur when couples split. Just because your ex said that he would pay a bill on a joint account doesn’t mean that it was actually paid. It’s a lot easier to get things straightened out before the collection agencies start to call.

Sheri’s in a pretty good position to solve this problem. One letter will stop the harassing phone calls from the collection agency. And a check of her credit report will ensure that she doesn’t have problems with this the next time she wants to apply for credit.

• 50 Things Anyone Dealing With a Debt Collector Should Know
• 6 Steps To Take If Your Debt Goes Into Collections
• Repay ‘Charged Off’ Debt Sold to a Collection Agency?

Reviewed October 2023

About the Author

Gary Foreman is the former owner and editor of The Dollar Stretcher. He's the author of How to Conquer Debt No Matter How Much You Have and has been featured in MSN Money, Yahoo Finance, Fox Business, The Nightly Business Report, US News Money, Credit.com and CreditCards.com.