Do I have to pay a debt that a collection agency says is mine but I don't recognize it?
No. You have the right to dispute a debt you do not recognize, and you should do so promptly and in writing. When a collection agency first contacts you, you may ask them to provide verification of the debt — the original creditor's name, the account number, and a statement of the amount claimed. Ontario's Collection and Debt Settlement Services Act requires collectors to provide certain information upon request.
Common reasons a debt may seem unrecognizable include clerical errors, identity theft, an account that was settled or discharged, or the collector having the wrong person. In identity theft situations, you should also place a fraud alert with the major credit bureaus (Equifax and TransUnion) and consider filing a police report.
If the collector insists the debt is valid and you continue to dispute it, keep all correspondence. If the matter proceeds to court, you will have an opportunity to defend and demonstrate you do not owe the claimed amount. The burden is on the creditor to prove the debt exists and that you are the person responsible.
Do not simply ignore the dispute, and do not pay a debt you believe is not yours just to make the calls stop — doing so could be interpreted as acknowledgment. Get legal advice to protect your position.
Key takeaways
- You can demand written verification of any debt a collector claims you owe.
- Paying a disputed debt may be treated as an acknowledgment, which has legal consequences.
- If identity theft is suspected, file a fraud alert and consider a police report.
- The creditor must prove the debt and that you are the debtor if the matter goes to court.