Debt collection Scams
Fake collectors know how to extort money from people. Fear and intimidation are the tools of their trade. Using credit reports, scammers can find your debts and then make a phone call introducing themselves as one of these creditors.
How to spot fake debt collectors?
Having adebt may mean that you are open to debt collection scams.
How to understand that the collector is working legally?
- If you receive a call from a prospective collector, request a confirmation letter before making any attempt to pay off the debt. A confirmation letter is one way to make sure you are dealing with a legitimate collector.
- Even if the collector is legal, there is a chance that it may not be yours. The debt may be real, but someone else who bears your name, or may be the result of identity theft. Ask for personal details about the debt, including the name of original creditor and the amount of the debt.
- Most companies will seek debt repayment in the first place on terms that are convenient for you. So if the person on the phone claims that you can only pay by bank transfer or prepaid debit card, you may be dealing with a scammer.
Obvious signs that you are dealing with fraudulent loan collection services:
- Debt collection scams often use scare tactics. The scammer will try to make you feel like an irresponsible person. They may also threaten you to make you feel fearful and try to create a sense of urgency so that you do what they ask you to do as soon as possible.
- Fraudsters will not provide you with contact information about themselves, even if you directly ask them a question about their address or phone number. Often they use distraction tactics by continuing to insist on repaying the debt.
- If the debt is not yours and you do not recognize it, and the alleged debt collector is trying to force you to pay the debt, then this is probably a scammer.
- If you are contacted by someone you suspect of fraud, ask them to confirm the debt. When a debt is transferred to a collector, you will receive a formal written notice in the mail. The collector must send this letter within five days after the first contact with the consumer.
- A prepaid card or money transfer is difficult to trace, that's why scammers often ask you to use these forms of payment.
- Debt collection agencies are not allowed to share information about your debt with most people. Therefore, threatening or insinuating that they will tell about your debt to an employer or family members in an attempt to get you to pay is illegal.
- A legitimate debt collector can call you at home or only between 8:00 and 21:00 in your time zone and ask for your whereabouts, but they cannot ask your employer or family members where you are or tell them details about your debt. Fraudsters often call before 9 am or after 5 pm.
Warning sign - threat to have you arrested
The Fair Debt Collection Practices Act prohibits debt collectors from harassing or abusing you.
If the caller refuses to reveal their identity and information about the company, then this is a clear sign that this is an illegitimate collection agency.
If your debt has been sold, then contact your original creditor and find out to whom exactly your debt was sold and whether it was sold at all.
If you ask a legal debt collector not to call you at work, he should stop doing so.
How to deal with debt collection scammers?
Remember that you, like any citizen of our country, have rights, and you can resist scammers. The most important thing is to keep a record of all messages and calls:
- Make notes when exactly a phone call would be made;
- Save threatening emails and texts;
- Save letters and applications from the company;
How to protect yourself from debt collection scammers?
If you fear falling victim to debt collector scams, here's how you can protect yourself, your bank account and your personal information:
- Contact your creditor and ask for a debt confirmation letter. When you receive real debt collection letters from your legitimate creditor, you can check his letters with letters from the collector who called, and you will understand if the legitimate debt collector is communicating with you;
- Check your credit reports to see if your report has the debt that the collector is referring to;
- When someone asks you for your personal and financial information, don't give anything that the potential scammer doesn't already know. Do not discuss your financial or personal information until you are sure the collector is legal;
A call or email from a company that claims to be in the business of collecting debt can be alarming.
If you feel you are being harassed, deceived, or treated unfairly, learn how to dispute debt and stop debt collection companies from Sharova Law Firm, New York.
We will help you deal with your problem. Our team has 65 years of combined experience in dealing with the most complex legal cases. We go the extra mile for our clients, pride ourselves on being accessible and responsive.
We will be glad to help you. Contact number: 212-321-0741
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