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Debt and free financial counseling
If someone calls or writes to you about a debt, do not ignore it, but do not give out a card or account number until you are sure it is a real collector. You have rights, and New York City has free financial counselors.
QARAVAN does not give legal advice and has no lawyers. If you are sued, turn to a lawyer or a legal aid organization.
Start here
- A debt collector generally must name the creditor, the amount and how to dispute within 5 days. If not, it could be a scam.
- If you get court papers, respond by the date on them, yourself or through a lawyer. Otherwise the court can enter a default judgment against you.
- The City offers free, confidential sessions with a financial counselor (NYC Financial Empowerment Centers). Book online or through 311.
Do not ignore it, and do not give out data
If the debt is valid, ignoring the calls usually will not make the collector go away: it may find other ways to collect, including a lawsuit. Do not give out financial details until you have confirmed the collector is real.
Get the validation information
A collector generally must give, at first contact or within five days, the creditor's name, the amount you owe and how to dispute it. If it cannot or will not, it could be a scam.
Write promptly
The CFPB has sample letters, for example asking the collector to contact you only through your lawyer. Send one as soon as possible after the first contact and keep copies. Some information can only be requested within 30 days, but it is still worth asking later. Sample letters are not legal advice.
If it is not your debt or you already paid
Documents help your dispute. Ask the collector to prove you are the right debtor and to show how it calculated the amount. You can also tell the collector in writing to stop contacting you.
Know your rights
Under the Fair Debt Collection Practices Act, collectors may not harass, oppress or abuse you. If they call at an inconvenient time or place, you can ask them to call at a time or place you choose.
File a complaint
You can file a complaint about a debt collector with the CFPB.
Respond by the deadline
If you are sued over a debt, respond by the date in the court papers, yourself or through a lawyer. Responding does not mean you admit the debt: the collector then has to prove to the court that it is valid.
What happens if you do not respond
The court could enter a default judgment for what the creditor claims, plus lawful costs, interest and attorney fees. Refusing to accept the papers may be treated as ignoring the lawsuit. A judgment is hard to change, and afterward, depending on your situation and state law, the creditor may garnish your wages, put a lien on your property or freeze money in your bank account.
Find a lawyer
A lawyer can explain your federal and state protections. Some lawyers work for free or a reduced fee, and legal aid offices and legal clinics may help for free if you meet their criteria.
Know about the statute of limitations
A collector cannot sue or threaten to sue once the statute of limitations (the time it has to file a lawsuit) has expired, and cannot threaten a lawsuit it does not intend to file.
If you cannot pay your debts, compare who offers what.
Credit counseling and other offers (October 2026)
| Who they are | What they do or promise | What to watch for | |
|---|---|---|---|
| Credit counseling | Usually nonprofit organizations | Advise on managing money and debts; can set up a debt management plan to lower your monthly payment | Cannot erase debts; may charge fees; the first session usually lasts about an hour. |
| Debt settlement | Usually for-profit companies | Offer to settle your debts for a fee, usually with a lump sum you save up in advance | Cannot guarantee savings or timing; usually cannot get better terms than you could yourself; a fee before results may be illegal. |
| Debt consolidation loan | Banks, credit unions and other lenders | You take one loan to pay off several debts, then make a single payment | A low rate may be a temporary "teaser rate"; a longer term lowers the payment, but you may pay more overall. |
| Credit repair | Usually for-profit companies | Promise to fix your credit or scores, usually by doing things you can do yourself for free | They may dispute accurate items too, so your scores change and then change back. |
Check the requirements
You must be 18 or older and live or work in New York City; income and immigration status do not matter. Sessions are free and confidential.
Book
Book online on the Financial Empowerment Portal, with or without an account: a866-dcwpwb.nyc.gov/talkmoney/book-appointment. Sessions are in person or by phone, in your language.
Prepare documents
Bring what you have: bills or statements, credit reports, collection notices, tax returns, pay stubs, court papers, student loan bills. The counselor can help even without them. Get a free credit report at AnnualCreditReport.com.
What happens at the first session
The counselor will call you, ask you to confirm your date of birth and address, and ask about your income, expenses, savings and debts. They may ask for your Social Security number to pull your credit report, but you can say no. Counselors never ask for payment. At the end you will have an Action Plan together and be offered a follow-up session.
How the counselor can help
With your spending and credit, contacting lenders about debt (including student loans), a plan to reduce debt or lower payments, and access to emergency government help. The centers do not give loans or grants.
NYC Financial Empowerment Centers
Any statusNYC residentsFree
Free, confidential sessions with a financial counselor from the City's Department of Consumer and Worker Protection (DCWP): budget, credit, debt, student loans, opening an account. You must be 18 or older and live or work in New York City; status does not matter. Book online: a866-dcwpwb.nyc.gov/talkmoney/book-appointment.
Consumer Financial Protection Bureau: debt collection
Any statusFree
The federal agency that protects consumers of financial products: it explains debtors' rights, offers sample letters and takes complaints about debt collectors online: consumerfinance.gov/complaint.
- Debt collector
- A company or person that demands repayment of a debt; it is covered by the Fair Debt Collection Practices Act.
- Validation information
- Details about the debt: the creditor's name, the amount and how to dispute it; a collector must generally provide them at first contact or within five days.
- Default judgment
- A court judgment against you if you did not respond to a lawsuit. It lets the creditor, for example, collect from your wages.
- Garnishment and lien
- Garnishment: taking money for a debt directly from your wages. Lien: a creditor's legal claim on your property.
- Statute of limitations
- The period of time a creditor has to file a lawsuit over a debt.
- Credit counseling
- Usually nonprofit organizations that advise on managing money and debts.
- Debt management plan
- A payment plan where you make one payment to a counselor, who then pays your creditors.
- Action Plan
- The written list of steps you build with a counselor at an NYC Financial Empowerment Center.
This is general information, not legal advice: QARAVAN has no lawyers. QARAVAN does not help anyone enter the US and cannot arrange visas, invitations, sponsorship or evacuation. For your own case, talk to a licensed immigration attorney or a representative accredited by the U.S. Department of Justice.