How to See What You Owe in Collections

When a debt goes unpaid, it may be transferred to a collections agency or sold to a debt buyer, becoming a collection account. These accounts signal to potential lenders and creditors that an individual has failed to meet a financial obligation. Understanding these debts is important for financial planning and managing financial health. This article guides you on locating and understanding collection accounts.

Credit Reports as Your Primary Source

Credit reports are the primary source for identifying collection accounts. By law, you are entitled to a free copy of your credit report once every 12 months from Equifax, Experian, and TransUnion. AnnualCreditReport.com is the official source for these reports. You can request all three reports at once or space them out to monitor your credit more frequently.

Accessing these reports online provides immediate access after identity verification. Alternatively, reports can be requested by phone at 1-877-322-8228 or by mailing a completed Annual Credit Report Request Form. Review each report, as some lenders may not report to all three bureaus, causing variations in the information presented.

On a credit report, collection accounts are listed under sections like “Collection Accounts,” “Derogatory Marks,” or within the individual account history. For each entry, identify the collection agency and the original creditor. Other details include the original debt amount, current balance, and the date the account was opened or placed for collection. The account number is also needed for future reference and communication. These details help you understand the debt and prepare for actions like contacting the agency or disputing its validity.

Direct Contact with Collection Agencies

Directly contacting collection agencies can offer more current details about a debt than credit reports. This is relevant if an account appears on your credit report, you receive a collection notice, or need more specific information. Agencies may not report to all three credit bureaus, so a debt might exist even if it doesn’t show on every credit report.

When contacting an agency, have the account number and original creditor details ready, often from a credit report. Initial contact by certified mail with a return receipt is recommended for documentation, especially when requesting debt validation. This provides proof of communication. Phone contact is an alternative, but take detailed notes including the date, time, and the name of the representative spoken to.

You have a right to request a “debt validation letter” under federal law. This letter, also known as a validation notice, must be provided by the collection agency either with their initial communication or within five days of their first contact. This notice should contain specific information, including the amount of the debt, the name of the creditor to whom the debt is currently owed, and a statement advising you of your right to dispute the debt within 30 days.

If you dispute the debt or request more information within this 30-day timeframe, the debt collector must stop collection efforts until they provide verification of the debt. This validation should include account numbers and an itemized accounting of the debt, including interest, fees, payments, and credits. Requesting this validation in writing ensures a documented record.

Reviewing and Disputing Collection Debts

After identifying collection accounts and gathering initial information, thoroughly review each debt. Verify the accuracy of the debt amount, the original creditor, and that the debt genuinely belongs to you. Also check the debt’s age to see if it’s past the statute of limitations for legal action, which generally ranges from three to ten years depending on the debt type and jurisdiction.

Disputing a debt becomes necessary if any information is inaccurate, incomplete, or if the debt is not recognized as legitimate. There are two ways to dispute inaccurate collection accounts: with the credit bureaus and directly with the collection agency. When disputing with credit bureaus (Equifax, Experian, and TransUnion), the process can be initiated online, by mail, or by phone. Clearly explain the inaccuracy and provide supporting documentation.

Credit bureaus must investigate disputes within 30 days, or up to 45 days if additional information is submitted or if the dispute is based on a free annual credit report. If the credit bureau finds the information inaccurate or incomplete, they must update the credit report and notify you of the results. If a debt validation request from a collection agency is unsatisfactory or new inaccuracies are found, you can dispute the debt directly with the collection agency in writing.

Required documentation for any dispute includes copies of debt validation letters, personal financial records, proof of payment, or identity theft reports if applicable. Maintain copies of all correspondence and documentation sent, ideally via certified mail with a return receipt, for record-keeping and proof of communication.