Debt collectors and debt buyers — how disputes and complaints work

In short

Do not pay or give account details to a collector you cannot verify. Read the validation notice: it states the date your validation period ends. Before that date, dispute in writing (certified mail, keep a copy) and ask for verification and the original creditor's name and address; the collector must stop collecting the disputed debt until it answers. Dispute any wrong collection entry with each credit bureau and with the collector directly. If the collector ignores you or keeps collecting, complain to the CFPB and your state attorney general. Real collectors never threaten arrest.

How complaints work in this industry

• A collector must give you validation information at first contact or within five days after it: its name and mailing address, the original creditor, the itemized amount, what to do if you think the debt is not yours, and your rights. FTC: debt collection FAQs
• The FTC says to send a dispute letter within 30 days of receiving the validation information, by certified mail with a return receipt, and keep a copy; if you do not dispute within 30 days, the collector can assume the debt is valid. FTC: debt collection FAQs
• Debt buyers often use a separate servicer. LVNV Funding outsources the management of its accounts to Resurgent Capital Services and asks that all inquiries go to Resurgent; Midland Funding's accounts are collected by Midland Credit Management. LVNV Funding Midland Credit Management
• Large collectors run their own complaint units. Midland's Consumer Resolution Center sends concerns to its Chief Compliance Officer by online form, phone (877-420-0039) or mail to P.O. Box 939069, San Diego, CA 92193. Midland: contact us
• The CFPB sent about 79% of the 387,400 debt collection complaints it received in 2025 to companies, and referred 15% to other agencies such as the FTC when it was not the primary regulator. CFPB 2025 Consumer Response Annual Report
• Collectors change hands. Convergent Outsourcing's website now redirects to Transworld Systems, which bought Convergent's former owner ACT Holdings in 2021. ERC (Enhanced Recovery Company) was bought by TrueML in 2022 and closed its Jacksonville office in late 2023. Use the name and address on your notice. TSI: ACT Holdings acquisition Jacksonville Daily Record, September 26, 2023

Your leverage

• A written dispute within the validation period makes the collector stop collecting the debt, or the disputed part, until it sends verification or a copy of a judgment. A written request for the original creditor's name and address also stops collection until it answers. CFPB: Regulation F 1006.38
• A dispute sent through an email address or website portal that the collector accepts for communication counts as written. During the validation period the collector may not use communications that overshadow your dispute rights. CFPB: Regulation F 1006.38
• You can dispute a collection entry directly with the collector as a furnisher. It must investigate a dispute sent to the address on your credit report or the address it gives for disputes, and finish within the same time limit as a credit bureau. CFPB: Regulation V 1022.43
• You can tell a collector in writing to stop contacting you; after that it may contact you only to confirm it will stop or to tell you about a specific action, such as a lawsuit. If you have a lawyer, the collector must deal with the lawyer. FTC: debt collection FAQs
• Collectors may not threaten harm or arrest, misstate the amount, pretend to be a lawyer or government official, or call more than seven times within seven days about a debt. FTC: debt collection FAQs
• Midland says it will not sue you while you are actively making payments, and that logging in online does not restart the statute of limitations. Midland: FAQs
• Enforcement history helps a complaint. In the case behind its 2023 order against PRA, the CFPB alleged collecting unsubstantiated debt, suing on time-barred debt and mishandling credit reporting disputes. CFPB: Portfolio Recovery Associates A 2020 order against Encore and Midland bars collecting time-barred debt without required disclosures. CFPB: Encore Capital Group et al.

Traps

• Not disputing within the validation period lets the collector assume the debt is valid, but under Regulation F failing to dispute is not a legal admission that you owe it. FTC: debt collection FAQs CFPB: Regulation F 1006.38
• A collector can answer a repeat dispute by calling it duplicative instead of sending new verification. Put everything in the first dispute. CFPB: Regulation F 1006.38
• A debt sale does not cancel the debt. LVNV says that after charge-off "the new owner is LVNV Funding" and "this does not mean the debt goes away". LVNV Funding
• Paying for "dispute help" is often wasted money. Midland says you can dispute for free directly with it. Midland: FAQs
• Several collectors publish no dispute address online (Jefferson Capital, Resurgent, Transworld Systems). Use the address on your validation notice or credit report, and keep proof of mailing. Jefferson Capital: contact Resurgent
• Do not send a full Social Security number or bank or card numbers in a complaint form. Midland: contact us TSI: consumer support hub

Scams to watch for

• Fake debt collectors: Resurgent warns of harassing or threatening calls about payday, credit or collection accounts, and says not to give such a caller any financial, payment or personal information. Licensed collectors do not threaten arrest, jail or freezing your assets without due process. Resurgent: scams and frauds
• Do not give personal or financial information to a collector until you have received validation information or know the collector. FTC: debt collection FAQs
• Check the caller: Resurgent suggests confirming that the original creditor named matches an account you had. PRA publishes "Who's Calling From" pages for its phone numbers. Resurgent: scams and frauds PRA: who's calling
• "Phantom debt" business imposters: the FTC's 2025 imposter data cites a phantom debt scheme in which scammers impersonated businesses. People reported losing $3.5 billion to imposter scams in 2025. FTC, June 15, 2026
• Recovery and refund scams target people who already lost money, posing as government agencies, law firms or consumer groups and asking for an upfront fee. FTC: refund and recovery scams
• Report fake or abusive collectors to your state attorney general, the FTC at ReportFraud.ftc.gov and the CFPB. FTC: debt collection FAQs

By the numbers

• The CFPB received about 387,400 debt collection complaints in 2025. Companies closed 66% with an explanation, 23% with non-monetary relief and 0.1% with monetary relief. "Attempts to collect debt not owed" has been the top issue since 2013, and complaints about debts consumers did not recognize rose 240% against the prior two years' monthly average. CFPB 2025 Consumer Response Annual Report
• CFPB complaints received July 1, 2025 to June 30, 2026: Resurgent Capital Services (LVNV) 25,451; CL Holdings LLC (a Jefferson Capital subsidiary name) 25,014; Encore Capital Group (Midland) 22,637; Portfolio Recovery Associates 20,723; Convergent Resources 48. Data retrieved 2026-10-13. CFPB: Resurgent CFPB: CL Holdings CFPB: Encore CFPB: PRA CFPB: Convergent
• The CFPB database lists no complaints about ERC received after February 5, 2024 (12,420 in total). CFPB: ERC