5 Tips to Keep an Eye on Debt Collection Scams

To many people, debt collection scams have become a critical worry and countless of them are falling for these fraudulent schemes. Being able to recognize and avoid such scams is crucial in maintaining one’s financial well-being. Below are the five major tips to stay alert about debt collection scams.

Confirm Whether the Debt is Real

Whenever you get a call from a debt collector, always confirm whether it is real or not. These scammers often target people who already have debts and hence find it easy to deceive them. Ask for a notice of written validation which should contain among other things the amount owed, the name of the creditor and consumer rights as per the Fair Debt Collection Practices Act (FDCPA). If the person calling cannot give such details then he/she is in all likelihood a scammer.

Check Out The Credentials Of The Collector

Real debt recovery agencies are registered and can be traced back to their credentials. Get the collector full name, company name, address and telephone contacts as well. Then compare this information with that obtained from your state attorney general or Consumer Financial Protection Bureau (CFPB). It would be wise not to entertain any collector who refuses to furnish you with the stated details since this could be an indicator of wrong intentions.

Do Not Give Personal Information

It is advisable not to share personal information over the phone particularly when you never initiated it. For example, these fraudsters ask for personal data like social security numbers, bank account numbers or credit card numbers so they can commit identity thefts. A genuine debt recovery agency will first seek verification before demanding such information upfront.

Detect Threatening Behavior

A genuine and professional debt collector does not use abusive or derogatory words against his/her customers. If somebody starts threatening you with dire consequences like jail time if you don’t pay immediately, wage garnishment without court order, etc., and know that he/she must just be another swindler after your money. You should remember that there are guidelines, which a debt collector must work within and therefore he cannot harass you or even intimidate you.

Research The Debt Recovery Service Provider

If in doubt about whether the debt collector is genuine, check it up. Search for the agency online and see if people have written anything about them or made any complaints. Many of these scammers will use names similar to those used by reputable companies to cheat victims. It is important to verify that this is an authentic provider of debt recovery services so that you don’t lose your money through scams.

Okay Call Center

Okay Call Center offers legitimate debt recovery services. Be safe from all forms of scams by working with a reliable experienced company. More details about our services and how they will help in dealing with your debts safely and efficiently can be obtained by reaching out to us today.

FAQs

Q: What do I do if I suspect a scam regarding debt collections?

A: In such cases, individuals should never reveal their personal data whatsoever, and report the matter for investigation immediately at the Federal Trade Commission (FTC) while also notifying their state attorney general’s office.

Q: Can creditors threaten legal action in case payment is not made immediately?

A: Genuine collectors are not allowed to make threats of a legal nature without following necessary due process therefore every such communication could be regarded as a false alarm indicating fake collectors.

 

Article Author

Rajib Sain

Head of Business Operation

Rajib heads business operations for the fundraising wing alongside other critical functions in the organization. He has been associated with the organization for the past 6 years and handled various other profiles and lead the team with his wealth of experience in Sales, Operations and HR. He believes in capability building and leads the team accordingly so that they are ready for new challenges and motivates them towards growth in the organization.