Scams: Fake Debt Collection

The Fake Debt Collection Scam is an easy one to fall for. If you owe money to someone it's easy to assume that the person on the other end of the line may be a legitimate collector. Con artists trick you out of your money by taking advantage of any weaknesses they can exploit when they are talking to you on the phone. Information about you can be obtained in many ways and may be brought up during the call to establish that the caller is “legitimate”. Do not be fooled by this.

It is important to be aware of some of the more common scams. When swindlers find something that works they stick with it. The best thing is to not allow a conversation to continue if you suspect it is not legitimate. DO NOT be afraid to hang up on these people. Remember, If you have only exempt retirement income such as Social Security, VA Benefits, and/or most pensions, these callers cannot do anything to you – by law, they cannot take your income!

You might be dealing with a scammer or con artist if...

• You don't recognize the debt or loan (always check the account number).
• The caller won't give you their name, a mailing address, a company name, or a court case number.
• The caller asks for personal financial information.
• The caller uses high pressure tactics, often demanding payment TODAY, threatening arrest, or swearing. Remember, con artists know they get more suspicious over time and will try to force you to act without careful consideration.
• They offer limited payment options, be especially wary of ones requiring you to wire money or load a rechargeable money card since there is no way to prove that you made a payment.
• The caller claims to be with law enforcement (police and/or the courts will never call you regarding a debt).
• The caller (or letter) accuses you of some type of fraud and/or says that they are from a State Attorney General's office.
• You may always make a free call to HELPS Nonprofit Law Firm before paying someone who calls you on the phone.

If you suspect you are being targeted by a fake debt collector you should ask for the individuals name, company, street address (not a PO Box), and a validation notice for the debt. It may be a good idea to tell the caller that you are recording the conversation (even if you are not), often the caller will hang up immediately.

Remember - Never give or confirm personal information of any kind, particularly Social Security numbers or bank account information.

For HELPS clients: You may simply treat these calls like any other collector and tell them you are represented by a law firm, give them our name and number, then politely hang up. If you receive a letter, simply forward it to our office and forget about it. 

Fair Debt Collection Practices & Ending Unwanted Collector Contact

If you are being harassed by collectors you will be happy to know that there is protection provided for you under the federal Fair Debt Collection Act, and many states provide additional protections for their residents (not discussed here). If your debt is for household, family or personal spending this act protects you from harassment by third party collectors.

Collectors are allowed to contact you between the hours of 8am and 9pm (your time). Also, if you inform them that they are calling at a time that is not convenient for you they must stop calling at that time. If a collector contacts you at work you may inform them that you are not allowed to take calls at work. They must stop contacting you. If they call you on your cell phone, you may inform them that they are calling on a cell phone, it is costing you money to receive these calls and they must stop calling that number.

When trying to locate you, your collectors can contact friends, family members or neighbors to inquire about your location. They cannot, unless expressly asked, disclose that they are from a collection agency, additionally, they can't call the same person twice without that individuals permission or reasonable probability that the individual has more necessary information. Without your permission the collector cannot try to collect through anybody but you, your spouse or your co-debtors.

When a collector calls, they cannot misrepresent themselves as being affiliated with a different agency or the government. They must inform you if the call is being recorded or monitored (it almost always is). They cannot exaggerate the debt or its legal status. They cannot threaten legal action they have no intention of taking or mislead you about the legal nature of any forms. They cannot threaten to sell the debt to induce payment. They cannot threaten violence or other criminal action against you (this includes harm to your reputation or property), nor can they use abusive language or call repetitiously.

In most cases it is necessary to request that a collector cease communication with you in writing (we will soon have a link to a sample letter). Alternatively, you can hire an attorney. After contact has been made with the collector you will likely continue to receive a statement of account and or updates as to the legal status of your account. These are for information only and are permitted under the law; they cannot send further collection letters. The debt will most likely be sold to a new collector at some point who will send new collection letters, making it necessary to repeat the procedure.

In our experience at HELPS Nonprofit Law Firm, letters sent by individuals are often ignored. Letters from an attorney are usually taken more seriously and calls stop after they receive our letter.

HELPS provides a service: sending out cease and desist letters and dealing with the probing calls from collectors. As long as we are kept up to date with information about any new collectors who contact you, we will continue to send letters to your creditors for you. This is a multiple year process that quickly becomes tiresome for most people. For those who find it confusing, exhausting, or overwhelming; we are happy to help restore peace to their lives, stopping collector harassment and seniors well informed about their rights are in regards to their creditors.