I don't think I owe this debt

What's happening

If a creditor or debt collector is chasing you for money you don't believe you owe, you have the right to question it. A debt might be wrong because it isn't yours, it has already been paid, the amount is incorrect, or it relates to an account you never opened.

You don't have to pay an amount just because you've been asked to. A fair process lets you dispute the debt and ask the other side to prove it is genuine and that you are the right person to pay it. This is general information, not legal advice.

Your first steps

Stay calm and don't admit the debt or agree to pay until you've checked it. A few sensible first moves:

• Write down what you were told — who contacted you, when, the amount, and the name of the original creditor.
• Don't ignore it. Ignoring letters won't make a debt go away and can lead to court action.
• Ask for it in writing. If you were phoned, ask the collector to send the details by letter or email.
• Check your own records for any account that might match before you reply.

Step by step

Work through it in order:

1. Ask for proof of the debt in writing — the original contract or agreement, a statement of how the amount was calculated, and proof the debt was assigned to the collector.
2. Dispute it in writing. Send a short, polite letter or email saying you dispute the debt and why, and ask them to put collection on hold while they look into it.
3. Keep paying nothing you don't owe — but if part of the debt is genuine, deal with that part separately.
4. Wait for their response and check whether the proof actually shows the debt is yours.
5. Escalate to free external dispute resolution if they can't prove it or won't stop chasing you.

What evidence helps

The other side should be able to show the debt is real and yours. Helpful evidence includes a copy of the original credit contract or application, account statements, a record of the last payment, and — if a debt buyer is chasing you — proof the debt was sold or assigned to them. Keep your own evidence too, such as bank records, receipts, or anything showing the account isn't yours. A glossary of common terms is at directory.merion.com.au/glossary.

Where to get free help

Free, confidential help is available. Call the National Debt Helpline on 1800 007 007 to speak with a financial counsellor, or seek free legal advice from a community legal centre or Legal Aid in your state. If the creditor or collector won't resolve your dispute, you can usually take it to a free external dispute resolution scheme such as AFCA — see directory.merion.com.au/bodies for who's who.