How to Avoid Falling Prey to a Debt Collection Scam
Given today’s challenging economic times, it’s no surprise that criminals are preying upon wary consumers in an attempt to collect bogus debts. In fact, consumers across the country are reporting creditor calls on loans they never received or on amounts they do not owe. Learning how you can avoid falling prey to a debt collection scam is the first step toward achieving financial safety.
If you receive a puzzling phone call from a “collector,” pay attention for these red flags noted by the Federal Trade Commission (FTC):
• Is the caller seeking payment on a debt for a loan you do not recognize?
• Does he or she refuse to give you a mailing address or phone number?
• Are you being asked for your personal, financial or sensitive information?
• Is the caller exerting high pressure to try to scare you into paying, such as threatening to have you arrested or report you to a law enforcement agency?
If you suspect that a caller may be a fake debt collector, the FTC advises you to ask the caller for their name, company, street address, and telephone number. Tell the caller that you refuse to discuss any debt until you get a written “validation notice.” The notice must include the amount of the debt, the name of the creditor you owe, and your rights under the federal Fair Debt Collection Practices Act.
If a caller refuses to give you all of this information, the FTC stresses that you should not pay. Stop speaking with the caller and do not give him or her any personal or financial information. Contact your creditor as soon as possible to question the phone call and never hesitate to file a report with the FTC and state Attorney General’s office. You can never be too safe when it comes to your family’s financial safety and privacy.