If consumers did not have enough to worry about having to deal with rising credit card interest rates, late fees and over-limit fees, zombie debt, and fervent bill collectors, now we have to worry about collectors calling about fake debt.
While many legitimate collection agencies follow the FDCPA, there are some collectors out there that are only running a scam operation and will be quick to use threats and scare tactics to get you to pay up quick. Their scams turn up in mailboxes, on the internet and through the telephone every day. Some collectors pose as national banks, government agencies (FBI, CIA), or even popular celebrity stars to gain personal information. These phony collectors may threaten to repossess your house, issue a warrant for your arrest, or even garnish your pay check, all of which are against the FDCPA rules. Some of which are even laughable (for example, there is no debtor’s prison in the United States).
Fake debt scammers rely on the fear and lack of knowledge about debt collection laws within the population. They also figure that a certain percentage of their calls will be received by individuals who may be carrying debt on credit cards anyway and may be susceptible to intimidation. When collectors use misleading statements and fail to provide identification, they are breaking the law. Never pay money to a possible thief. Keep cool when you hear from collectors to avoid this collection abuse.
Many times, people who took out payday loans online in the past are most susceptible. If you took a payday loan, be aware scammers may have access to your Social Security number and other personal information, and keep your guard up against such tactics.
Ironically, real "deadbeats" probably wouldn't fall for these scammers, since they have no intention of repaying their creditors anyway. But upright citizens may doubt themselves, thinking they've forgotten to pay a bill. Many times, the sums involved tend to be fairly small, so some people may be tempted to just pay the "bill" and "get it over with."
Ways to Protect Yourself Against Debt Collection Scams
Review your credit report frequently to find inaccuracies.
Be aware of your current creditors and how much you owe.
Ask creditors for identification before you provide any information over the telephone.
Reporting Fake Debt Collectors
If you ever receive a call from anyone identifying himself as a debt collector, the law requires that the debt collector provide you with identification, and that the debt collector refrain from making misleading and threatening statements.
You can report any problems you have to your state Attorney General’s office www.naag.org and the Federal Trade Commission www.ftc.gov. Many states have their own debt collection laws that are different from the federal Fair Debt Collection Practices Act. Your Attorney General’s office can help you determine your rights under your state’s law.
I got a call on 11/10/09 on my job. A man with a very think accent said I needed to get a lawyer. I just hung the phone up. The next day he called my cell phone saying the same thing.
I received a call from this company threatening me about me being arrested and I owe some sort of loan, which I don't. Asked them to give me the name of the company, phone number, the amount, and all they said was we don't have that information and you have to be in court tomorrow or suffer the consequences. These people don't know who they are messing with!
I received a call from this number at my work and on my cell phone, claiming at first to be from "The Law Offices of Jackson and Rose". A thick accented man told me that I was "the prime suspect" in some sort of criminal action and that a team of police would be at my house to arrest me at 1130 today!
I called back asking what this was about, and the guy refused to give me his name, and swore at me. I continued calling back, for a total of 11 times! During our many brief conversations, he told me that he was initially with the "crime investigations unit" and when asked what law enforcement agency that was with, hung up on me.. I was then told he was with "Jacob Morrison Law Office", and that this was in reference to a payday loan I had allegedly taken out and not repaid ( sorry, never took one). He continued to claim a warrant had been issued to me and that I needed to pay him $200 immediately to "avoid process of court and arrest".
I continued calling him back, and he wound up calling me several colorful names, and hanging up on me repeatedly..
I hat eto tell him, but its past 1130... his officers are late!
I GOT A CALL TODAY FROM A PHONE NUMBER THREATING TO BE A LAWFIRM, HE NEVER GAVE ME A NAME OF HIS LAW FIRM. HE SAID I OWE 500 DOLLARS THEN AS WE CONTINUED TO TALK HE SAID I OWE HIM 5,000 DOLLARS AND HAD TO BE PAID BY TODAY OR I WILL BE PUT IN JAIL. I ASKED HIM WHAT IT WAS FOR HE SAID A PAYDAY LOAN. I NEVER TOOK OUT A PAYDAY LOAN IN MY LIFE. HE SAID A WARRENT WAS ISSUED FOR MY ARREST AND I WILL BE PICKED UP TOMORROW. I CALLED THE COURT HOUSE AND THEY SAID THAT THERE WAS NO WARRENT ISSUED FOR ME IF IT WA IT WOULD BE IN THERE SYSTEM NO MATTER WHERE IT WAS ISSSUED. I CALLED BACK AND NO ONE WOULD PICK UP. I HAD MY MOM CALL AND SHE SAID THERE WAS NO RINGING. SO WHEN I CALLED BACK THEY PUT ME ON HOLD AND GAVE ME 3 DIFFERENT NAMES BUT IT WAS THE SAME VOICE. SOMEONE IS RUNNING A SCAM AND TRYING TO STEAL OUR IDENTITY AND TAKE OUR MONEY.
I received this call from a restricted number and the man calling had a thick accent and he sounded like he was on a busy street that's how loud it was, as if there were a bunch of trains and traffic. He stated his name is Fred Henderson and that myself and my attorney needed to contact him immediately. The number I was told to call back was 323-474-0044. When I called the number another man answered. I explained that I received a call and I was not sure as to the reason. I asked for the company name and he told me CyberCrime Law Firm in NYC. When I asked for information on the company he stated okay and hung up.