You check your credit report. It's clean. You pay your bills on time. Your bank accounts show no missed payments. Yet a collection agency keeps calling, insisting you owe money.
This happens to millions of Americans every year. Collection agencies call people who owe nothing. The calls feel confusing, stressful, and sometimes threatening. But receiving collection calls does not mean you owe debt.
Understanding why collectors contact people with no debt helps you respond effectively and protect yourself from fraudulent collection attempts.
You receive calls from 888-899-6650 OR ANY other unknown numbers for multiple reasons, even when you believe you owe nothing.
Understanding these scenarios helps you respond appropriately.
Common Reasons Collection Agencies Call People With No Debt
Collection agencies operate on incomplete, outdated, or incorrect information. Several legitimate reasons explain why they contact people who owe nothing.
Mistaken Identity
Debt collectors contact wrong individuals constantly. This occurs through:
Similar Names: John Michael Smith gets calls meant for John M. Smith. Common names create massive confusion in collection databases.
Recycled Phone Numbers: Cell phone carriers reassign disconnected numbers. You inherited a number previously belonging to someone with unpaid debts.
Address Mix-Ups: Previous residents left debts tied to your current address. Database matching algorithms flag your address and pull your contact information.
Data Matching Errors: Credit bureaus and skip tracing services use imperfect algorithms. They combine data from multiple sources and create false connections between unrelated people.
Purchased Debt Portfolio Issues
When collection agencies buys debt portfolios, they receive incomplete or inaccurate records:
Missing Documentation: Original loan agreements, payment histories, and account details get lost during transfers between creditors and collection agencies.
Outdated Information: Debts paid years ago still appear in portfolios sold to the junk debt buyer. The original creditor failed to update records before the sale.
Duplicate Accounts: The same debt gets sold multiple times to different collectors. You receive calls from three agencies about one bill.
Inflated Balances: Each transfer adds fees, interest, and charges. The $500 medical bill becomes a $1,200 collection account.
Statute of Limitations Expired
The statute of limitations prevents creditors from suing you after a specific period. This timeframe varies dramatically by state and debt type.
The statute of limitations on debt typically ranges 3 to 6 years, depending on the debt type and the state you live in.
State-Specific Examples:
- Alabama: 3 years (oral contracts), 6 years (written contracts)
- California: 2 years (oral), 4 years (written)
- Florida: 4 years (oral), 5 years (written)
- New York: 3 years (oral), 6 years (written)
- Texas: 4 years (all contract types)
- Ohio: 6 years (oral), 8 years (written)
The debt collector continues collection attempts on time-barred debts because:
Legal but Unethical: They cannot sue, but they can still call and request payment. Many consumers pay out of fear or lack of knowledge.
Credit Reporting: Negative information like past-due debts generally stays on credit reports for seven years. The debt remains on your report even after the lawsuit deadline passes.
Restarting the Clock: In some states, if you acknowledge in writing that you owe the debt, the clock resets and a new statute of limitations period begins.
See below an illustrative example of the US map showing statute of limitations by state, color-coded by timeframe (3 years = red, 4 years = orange, 5-6 years = yellow, 6+ years = green):
Medical Billing Errors
Medical debt drives a significant portion of collection calls. The healthcare billing system creates errors at multiple points:
Insurance Processing Failures:
- Claims denied due to coding errors
- Pre-authorization not obtained
- Out-of-network charges not communicated
- Coordination of benefits mistakes with multiple insurers
- Claims filed to wrong insurance company
Hospital Billing Mistakes:
- Duplicate charges for same service
- Services billed but never provided
- Incorrect procedure codes
- Room charges during outpatient procedures
- Supplies charged at inflated rates
Payment Application Errors:
- Insurance payments not applied to account
- Your payment credited to wrong patient
- Deductible calculated incorrectly
- Co-insurance percentages wrong
You receive a collection call for services fully covered by insurance or already paid. Then debt collectors has no record of the payment because the original provider failed to update their system before transferring the account.
Identity Theft and Fraud
Someone used your personal information to obtain services or credit. You have no knowledge of the debt because you never authorized the transaction.
Common Identity Theft Scenarios:
- Stolen credit cards used for purchases
- Medical identity theft (someone uses your insurance)
- Synthetic identity fraud (mixing real and fake information)
- Account takeover of existing credit accounts
- New accounts opened in your name
Many debt collection companies receives these fraudulent accounts and pursues you as the responsible party. They have your legitimate contact information attached to someone else's charges.
Previous Occupant or Relative
Shared Address History: You lived with someone who accumulated debts. Collection databases link you to that person through shared address history. The debt collector then assumes you have current contact information.
Co-Signer Confusion: You co-signed a loan years ago. The primary borrower defaulted. Debt collection goes after both parties but focuses pressure on whoever they reach first.
Family Member Same Name: Your father is John Smith Sr., you are John Smith Jr. Collection agencies merge your credit files or contact you about his debts.
Deceased Relative: A family member died with unpaid debts. Debt collectors contacts surviving family members hoping someone feels obligated to pay (you are not legally responsible for deceased family member debts unless you co-signed).
What Happens If I Ignore Collection Calls When I Have No Debt?
Ignoring collection calls seems logical when you owe nothing. But ignoring creates risks even when the debt isn't yours.
Credit Report Damage
Collection agencies report to credit bureaus whether you respond or not. An incorrect collection account drops your credit score by 50 to 150 points.
The account stays on your credit report for seven years from the date of first delinquency. Ignoring it means seven years of credit damage for debt you never owed.
Lawsuits on Mistaken Identity
Some collection agencies file lawsuits even when they have wrong information. You receive a court summons. You ignore it because you know you owe nothing.
The court issues a default judgment against you. The collector now has legal authority to garnish your wages or levy your bank account. You must hire an attorney to vacate the judgment.
National Consumer Law Center research shows that 70% of consumers sued by debt collectors never respond. Most cases result in default judgments. Many of these judgments are on debts the consumer doesn't owe.
Increased Contact Attempts
Ignoring calls makes collectors more aggressive. They interpret silence as avoidance. They increase call frequency. They try different numbers. They contact people you know.
The calls don't stop. They escalate.
Protecting Your Credit Score From The Damage
As mentioned, collection calls like from TSI collections or any other debt collection companies devastate credit scores. Take immediate action to minimize damage and begin repair.
Immediate Actions (Days 1-7)
Pull All Three Credit Reports: Get baseline data on what the debt collectorreported and when.
Document Everything: Screenshot credit reports showing the collection account. Note the date, balance, and status.
Send Initial Dispute: If any information is incorrect (wrong balance, wrong date, not your debt), dispute immediately with credit bureaus.
Stop the Reporting: If you settle with them, the settlement agreement should require them to stop reporting negative information. Get this in writing.
Short-Term Protection (Weeks 1-12)
Monitor Credit Weekly: Sign up for free monitoring at Credit Karma, Credit Sesame, or through your credit card issuer. Watch for additional negative items or changes to the account.
Add 100-Word Statement: Credit bureaus allow you to add explanations to your credit file. Use this to explain the situation: "This account is disputed. I requested validation from the collector on [date] and have not received proper documentation."
Request Goodwill Deletion: If you paid the debt, write a goodwill letter to the debt collector asking them to remove the collection from your credit report as a courtesy. Success rate is low but costs nothing to try.
Negotiate Pay-for-Delete: Before settling, negotiate removal from credit reports as part of the deal. Get written confirmation the debt collector will delete the tradeline within 30 days of payment.
Long-Term Repair (Months 3-24)
Build Positive History: Open a secured credit card with a $200-500 deposit. Use it for small purchases monthly and pay in full. Positive payment history offsets collection damage.
Become Authorized User: Ask family member with excellent credit to add you as authorized user on their oldest, highest-limit card. Their positive history appears on your report.
Keep Accounts Open: Average age of accounts affects your score. Keep old credit cards active with small recurring charges.
Mix Credit Types: Having both revolving credit (cards) and installment loans (car, personal loan) improves your score faster than cards alone.
Dispute Annually: Each year, dispute the collection account with credit bureaus. Sometimes older accounts get removed because the debt collector assigned does not respond to verification requests.
Understanding Credit Score Impact
Collection accounts damage scores through multiple factors:
Payment History (35% of Score): Collections indicate serious payment failure. This creates the largest score drop.
Amounts Owed (30% of Score): Outstanding collection balances count as money owed, hurting your debt-to-income perception.
Length of Credit History (15% of Score): Collections do not directly affect this, but closing accounts to avoid collectors does.
Credit Mix (10% of Score): Collections do not help this factor.
New Credit (10% of Score): Desperately applying for credit after collection damage leads to multiple hard inquiries, dropping scores further.
The collection itself causes most damage in the first 6-12 months. After year one, the impact gradually lessens, but the account remains visible for seven years from the date of first delinquency.
The Bottom Line on Collection Calls When You Have No Debt
Collection agencies call people with no debt for many reasons. Mistaken identity, identity theft, incorrect information, and paid debts account for most cases.
Never ignore these calls. Request validation immediately. Check your credit reports. Dispute any incorrect information. Document everything.
You're not required to pay debts you don't owe. Federal law protects you from incorrect collection attempts. Exercise your rights. The collection agency must prove you owe the debt before you pay anything.