Dealing with a Legitimate Collector or a Scam
How to know the difference between legitimate debt collections and scams.
When an account like a credit card, auto loan, or cell phone bill becomes past due, the original creditor may hire a debt collector or sell the debt to someone who may try to collect the debt.
So, while you may be contacted by a legitimate debt collector, you should always be alert because there are also scammers who may try to get you to pay on debts that you don’t owe.
These are some warning signs of debt collection scams:
Withholds information from you.
A debt collector must tell you information such as the name of the creditor, the amount owed.
Pressures you to pay by money transfer or prepaid card.
Scammers like these payment methods because they may be untraceable, and it can be hard for you to get your money back.
They are impatient and make false threats.
Debt collectors aren’t allowed to threaten, harass, or publicly shame you. While true debt collectors will try to get you to pay what you owe, they can work with you to make a plan.
They are uninformed about your debt.
A legitimate debt collector can tell you the entire history of your debt in collections, including who your original creditor was and what kind of debt it was.
Calls you at inconvenient times.
Debt collectors cannot call you before 8 a.m. or after 9 p.m.
Asks you for sensitive personal financial information.
Such as your bank account, routing numbers, or Social Security numbers. You should never provide anyone with your personal financial information unless you are sure they’re legitimate. Scammers can use your information to commit identity theft.
How to protect yourself:
Ask the caller for a name, company, street address, telephone number, and professional license number.
You can request the caller’s name, company name, street address, and a callback number.
Ask for a validation notice before you discuss your debt.
Make sure you have been given information or have received the written notice with information about the debt before you pay anything.
Submit a complaint.
If you have received a suspicious call or think you’ve been the victim of a debt collection scam, you can submit a complaint with the Federal Trade Commissionor you can contact your state Attorney General’s office.
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