Creditors, as a rule, hire debt collectors to recover debts owed to them. Debt collectors are rightly expected to be quite legit. Regrettably, though, Bogus debt collectors do exist. In fact, they have become quite common in this country. Ways to Stop Debt Collection Scammers
Is a very much legitimate concern .
A Debt Collection Scammer might get in touch with you and let you know of a made-up debt. The scammer then might threaten you with court action, seizure of assets, or even a poor credit rating. Thus persistently bamboozled, you might end up coughing up the entire debt. It’s every bit as humiliating as owning up to a child that’s not yours.
Though perhaps you are not on the hit list of a debt collection scammer, still, it would not hurt to be in the know of the indicators that could put you out of harm’s way.
Debt Collection Scammers ’ targeted debts
Most scammers try to collect ‘phantom debts’. As the name implies, these debts are non-existent or were completely paid off. These fictitious debts are thus foisted upon the unsuspecting. Statute barred debts are another favourite with debt collection scammers. In the eyes of the law, these debts are no longer enforceable since the period during which the creditor could demand payment has passed.
Debt collector scam indicators
Tell-tale signs that you could be the target of a scam include if a pretended debt collector: does not give you the collection agency’s fullest details. If you are trucking with such folk, the name, physical address, contact information, and operating license number are essential details. Fake info given out by a pretended debt collector is an even louder siren calling the scammer out. An unreachable phone number is an obvious ‘no-no’.
Absolutely requires that you make an immediate payment via an untraceable method like a reloadable prepaid card;
- Absolutely requires that you hand over very sensitive personal information like your banking information or your credit card number. There’s a strong likelihood of these being used against your interests in various scams, for example.
- in identity thefts and related scams;
- threatens you with immediate Law Enforcement or judicial action;
- keeps mentioning a creditor or debt that you, no matter how hard you try, simply cannot recall;
- has a strong preference for working over the phone rather than going on record by putting ink to paper.
Please be aware that , due to mergers, acquisitions, and allied reasons, it’s perfectly possible for previously known entities to become known by some other name.
Has a debt collector contacted you?
If a debt collector has reached out to you, the following steps could help you steer away from trouble; you could also independently confirm if the debt collector is legit.
On no account, give any financial information away that could make you vulnerable; discuss the debt in any form or manner at all.
You absolutely can Demand to be given a formal written notice or a letter about the debt; reach out to the original creditor to know if the debt collector is authorised , and if the debt has been sold to the debt collector.
Full legit Debt Collector -Great Expectations?
A legit debt collector is a mine of information. They would be quite proud of their standing with their company. They would see themselves as representatives of their company and would not hesitate to say so. In fact, as far as the source of their authority is concerned, they would be only too glad to lay their cards on the table.
What’s more, genuine debt collectors would not would not, as a rule, exert pressure on you to pay back debts with untraceable methods like prepaid cards and wire transfers; they would, in all likelihood, be more than willing to give you secure options. Legit debt collectors will not demand personal and sensitive information. They will not see you as an adversary that has to be bulldozed into submission. Instead, they will see you as a partner whom they need to sign a repayment agreement with.
How do debt collection scammers get your information?
When a company you know neither hide nor hair reaches out to you, and that too to ask you to pay a loan, you would be forgiven for your disbelief. Considering that it wouldn’t be possible to shake off these tenacious beasts anytime soon, you do right to wonder where they got all the critical info?
Debt collection scammers may scoop up their information from internet search, your former creditor (if you had any), and from your bank credit report.
Debt collection scam spotting
Credit collection services is a fancy title they might decorate themselves with, but we do not shy away from calling a spade a spade. Hence – it is possible to mark out debt collection scammers miles off.
Debt collection scammers stand out by virtue of their marked affection for pressure tactics. They do not allow you space or the time to make up your mind. Rather , they begin by acting as if they are doing you a favour. Then, they bamboozle and fairly bulldoze you. No company in its right mind would use such pressure tactics on the subject of their activity. There will be neither hustle nor hurry. If they try to impale you with threats of Law Enforcement agency action or judicial action – call their bluff. If they say they could land you in jail – that’s a red flag.
Refusal to share contact info
These shy shysters think you are so nervous you would be quite unable to see thru the miasma of fear. But their refusal to share contact info really does stick out amile, doesn’t it?
Is the debt yours?
Ask your bank for your latest credit report. Ask them if outstanding debts have been sold off, and if so, to whom. Then, corroborate this info with what the pretended debt collectors are telling you.
Hold onto your mail!
It is truly to be hoped for that you are in the habit of carefully archiving any written snail-mail sent mails you have from years past. If ever a debt collector had something to do with you, you would have gotten a notification – signed and stamped on p[aper. Debt Collectors must send you a formal notification in case they seek a repayment agreement with you. If a scammer turns up out of nowhere, there’s naught more you can do except wait for him to incriminate himself.
You may pay only by prepaid card or wire transfer.
If you are asked to pay by untraceable money transfer methods, that’s a red flag if there ever was one.
They threaten to go public with your ‘disgrace.’
There are some regulations affecting the modus operandi of debt collection agencies. One of these stipulates that the agency in question cannot call you at work if you do not wish it; also, they are not permitted to share details of your debt with random members of the public as per relevant law. Per regulations, they cannot do more than ask for your whereabouts from your colleagues at work. When certain callers insist they will put your good name out in the lurid light, let them mark themselves out with their empty threat. Now you know they are not legit.
Shielding yourself from debt collection scammers
Shielding yourself from debt collection scammer is easy when you can do the following to secure yourself, your bank account, and your personal details
Get in touch with your creditor
Get your hands on the real information from your creditor and from the real debt collection agency. These agencies always have all updates info on file. If the info they give you tallies with the information offered by the pretended debt collectors, you can press the latter for a validation letter. Of course, their identity has to be clear, and the creditor or the original; agency can assist you in this.
Scrutinise your credit report
Sometimes it happens that credit is collected but not reported in credit reports. In that case, make sure you ask your credit agency about the exact status of the debt, past and present. If the report shows up in an official document -all the better.
Be tight-fisted and tight-lipped about your financial info
Till the collector does not come clean with every detail, feel under no obligation to respond to his queries, especially about financial matters.
Contact the debt collector’s office as per the info he supplies. If there’s no one taking up your calls, or the email remains unanswered for too long, mark your collector as a scammer.
You have rights, too!
Per the Fair Debt Collection Practices Act, a legit collector is required to identify himself and cannot attempt contacting you at unusual times and places. They also are prohibited from discussing details of your debt with anyone, save for your attorney, your creditor’s attorney, the collection agency’s attorney, or in very few cases, a consumer reporting agency.
There are a good number of official agencies in the country dealing with scams. Debt Collection scammers are manageable on the individual level until there’s the threat of actual violence. Do not allow yourself to be coaxed out of vital information. Your vigilance will save the day.