How To Dispute Debts in My Name (That Aren’t Mine)

How Does Wrongful Debt Happen?

Wrongful debt happens when an abusive debt collection agency misrepresents the nature of a debt to get you to pay a debt that’s unenforceable or doesn’t belong to you. It can also happen if a scammer opens accounts in your name or impersonates a collection agency.

Here’s how you may have wound up with a debt that’s not yours:

• Clerical errors by creditors or debt collectors. Simple processing and data entry mistakes within a company can sometimes lead to somebody else’s debt being wrongfully assigned to you.
• Credit reporting errors. Credit bureaus sometimes make mistakes or receive incorrect information from creditors that ends up on your credit file.
• Someone sold a time-barred fake debt. Debt buyers sometimes purchase fake debts or debts past the statute of limitations, which can lead to collection agencies pursuing you for debts that aren’t yours.
• Identity theft. Identity thieves can find out basic personal information — such as your name, address, and Social Security number (SSN), to create fake identities and take out fraudulent lines of credit.
• A family member or friend took out debts in your name. A sibling or parent with easy access to your mail and identity documents could exploit you for years before being caught.
• Joint debts. If you share a joint bank account or co-sign a loan with someone, lenders could hold you responsible for the other person’s debt if they fail to make payments.
• You signed as a guarantor for someone’s loan. As with joint accounts, you will be responsible for outstanding repayments if you agree to act as a guarantor for someone who defaults on their loan.
• Someone has power of attorney for your accounts. If you grant someone legal authority over your financial affairs, they could abuse their position to create debt in your name.

How To Prove a Debt Isn’t Yours

To prove a debt isn't yours, demand a debt validation letter within 30 days of contact, obtain original creditor details, check for other identity theft signs, and gather evidence such as forged signatures on contracts and mismatched creditor information.

Send a debt verification letter

Debt collectors are required to give you information that proves the debt is legitimate and belongs to you. This information is supplied in a “debt validation letter,” which must be sent within five days of the debt collector’s initial communication with you.

If you haven’t received a validation letter within five days of being contacted by the debt collector [*], you can send a “debt verification letter” to request written proof of the debt. You need to do so within 30 days of first contact about the debt.

In the best-case scenario, the collection agency isn’t able to supply the relevant information in writing — in which case, the debt collector is required to stop contacting you about the debt.

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Obtain original creditor details

A debt collector is required to provide you with the following information to validate the debt:

• The collector’s name and mailing address: Look up the company and see if you can find any information about it online, including reviews, etc.
• The name of the creditor of the debt.
• The amount of the debt, including interest, fees, payments, and credits.
• What to do if you think the debt isn’t yours.
• Your debt collection rights under the Fair Debt Collection Practices Act (FDCPA).

If you send a debt verification letter, the collector will be required to send you further proof that the debt belongs to you — such as a copy of the original contract bearing your signature.

In the meantime, contact the original creditor, and request copies of any signed contracts or documents to help prove the debt collector is illegitimate and the debt belongs to someone else.

Look for other signs of identity theft

If you believe scammers are targeting you with bogus debt claims, look for other signs of identity fraud, such as:

• New credit card debt or loans on your credit reports that you don’t recognize.
• A sudden and unexpected drop in your credit score.
• Unrecognized hard inquiries in your credit history.
• New bank accounts on your ChexSystems report that you didn’t open.
• Unfamiliar charges on your bank and credit card statements.
• You’re missing mail or are receiving strange letters.

Compile all your evidence to prove the fraud

Collect supporting documents to help you build a strong case for fraud. The most important pieces of evidence to collect are:

• Communications between you, the debt collector, and the original creditor (if applicable).
• A copy of the original loan or credit card agreement bearing a signature you don’t recognize or one that has been forged without your knowledge.
• Documents from the original creditor that don’t match the information sent to you by the debt collector.

Any other evidence of identity theft or fraud that you can provide — such as on your credit reports, ChexSystems report, or bank statements — can also be useful in proving that the debt is illegitimate.

📚 Related: Is Debt Relief Real? Or Is It a Scam? →

Steps to Dispute Wrongful Debts

Under the Fair Debt Collection Practices act, you have the right to a written notice of the debt, the right to verify the debt, and the right to contest the debt [*]. 

Once you’ve received a debt validation letter or confirmed that the debt collector is legitimate, follow these steps.

1. Send a dispute letter to the debt collector

If you believe a debt is not yours, you only have 30 days from receiving the initial contact from the collection agency to send a dispute letter. To assert your right to contest the debt, you must do so in writing.

In your letter, include a reason for the dispute, such as:

• The debt is old and past the statute of limitations [*].
• Inaccurate information, like incorrect account numbers, payment status, or balance owed.
• The collector cannot produce copies of your signed contract with the original creditor.
• You’ve been a victim of identity theft or fraud.
• Lack of notification or debt validation from the agency.

Attach any supporting documents that prove your claim — such as incorrect information provided by the debt collection agency, contracts that aren’t signed or show an incorrect signature, or relevant communications with the agency.

Once the agency receives your dispute letter, it must stop collection attempts and may not report to the credit bureaus unless it sends you written proof of the debt.

2. File a dispute with the credit reporting agencies

You have the right to dispute errors and incorrect information on your credit reports under the Fair Credit Reporting Act (FCRA) for free [*].

You need to dispute the information with each credit bureau separately. Write a letter with an explanation of what’s incorrect, and include any supporting documents or communications that back up your dispute.

• Equifax: Online or mail to Equifax Information Services LLC, P.O. Box 740256, Atlanta, GA 30348.
• TransUnion: Online or mail to TransUnion Consumer Solutions, P.O. Box 2000, Chester, PA 19016-2000.
• Experian: Fill out the dispute form and upload it online or mail to Experian, P.O. Box 4500, Allen, TX 75013.

📚 Related: How To Dispute a Credit Card Charge →

3. Request that the debt collectors stop contacting you

The FDCPA also gives you the right to request that debt collectors cease communication with you.

To exercise your rights under the FDCPA, follow these steps:

• Write a cease-and-desist letter. In your letter, emphasize that you want the agency to “stop contact” with you. You can insist that “all further contact should be through my attorney.” The Consumer Financial Protection Bureau (CFPB) has sample letters you can use as a template.
• Send the letter via certified mail with a return receipt. With the return receipt, you’ll have proof that the agency received your letter. Keep copies in case you or your attorney need proof later.

4. If they continue, file a complaint with the CFPB and FTC

Once you inform debt collectors that you want them to stop all communications immediately, they then may only contact you to serve you with a lawsuit.

If the collector persists regardless of your request to cease communication, file a complaint:

• Report the abuse to the Federal Trade Commission (FTC). If you believe you’re dealing with an abusive debt collector or potential scam artist, report the situation to the FTC at ReportFraud.ftc.gov.
• Submit a complaint to the CFPB. If you have an issue with a financial company, product, or service, you can file a report on the CFPB website. Most companies respond within 15 days.

5. Keep records of all communication with the debt collector

If an agency files a lawsuit, well-kept records of communications with debt collectors will help your attorney build a strong case to protect you.

Store copies of all written communications in a safe place, and write a short summary after any phone calls. It may also be a good idea to record calls if doing so is legal in your state.

Hiring a lawyer who specializes in debt collection cases — before you’re served with a lawsuit — can also help and provide you with sound legal advice. Once you notify the agency that an attorney is representing you, the debt collector must send all communications directly to your lawyer.

What Happens After You Dispute the Debt

After you dispute the debt, you can ask the debt collector to stop contacting you, and the collector must comply under the FDCPA. However, this doesn’t make the debt go away — the agency can still file a lawsuit against you to pursue the debt or report it to the three credit bureaus [*].

If the collection agency is unable to obtain verification that you owe the debt after you send a dispute letter, it will stop collection efforts and may return your account to the original creditor or sell it to another agency — which can unfortunately restart the cycle.

The best thing you can do to protect yourself against wrongful debt is to sign up for an identity theft and credit protection solution like Aura. With three-bureau credit monitoring and easy credit freezes, you can regain control of your credit and finances.

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