Beware of Fraudulent Debt Collectors
You may have even more reason to fear a phone call from a debt collector.
ABC News Denver reports that residents of Colorado have been receiving telephone calls from fraudulent debt collectors. These debt collectors know important and private information about the phone call recipients, such as name, telephone number, address, and the last four digits of their social security numbers.
The Grand Junction Sentinel notes 53 complaints have been reported in Colorado since February. And that’s only the reported occurrences.
The fraudulent debt collectors speak with a foreign accent, and according to Highlands Today are thought to be reporting from Indian call centers, homes, and automobiles.
They only use phony names such as “Steve Martin,” and may pose as attorneys, law enforcement officers, bankers, and investigators. They say they are calling from offices such as the “Cyber Crime Division” or the “United Financial Crime Department.”
The Consumerist reports that beyond making up phony names in order to conceal their identity, scammers make up phrases such as “downloading affidavits” that don’t mean anything but are intended to inspire fear in the call recipient.
They are also targeting people who have taken out payday loans. One consumer who had already paid off his debts was so scared of the legal action threatened by the fraudulent callers that he sent $800 to the call center.
The scammers tend to call while consumers are at work, sometimes several times in one day. They may even falsely advise supervisors that their employee has committed bank fraud. Because of this, supervisors should be aware that their employee could be the innocent victim of a fraudulent scheme, and cannot stop the calls from coming into the office.
What’s the best way to defend yourself? Know your right when it comes to dealing with debt collectors. Here are some tips regarding collection services so that you can protect yourself.
- Debt collectors must limit their calls. are allowed to contact you in any number of ways, such as phone, fax, regular mail or e-mail. They are not, however, allowed to contact you so often that it could be considered harassment. The debt collector may not contact you at work if he knows your supervisor would not approve nor may he call you at inappropriate hours.
- You need a written notice. The debt collector must send written notice of the amount due within at least five days of the first contact. The letter must state the creditor’s name and what you must do if you want to dispute the claim. If there is no letter, then the claim is not legitimate.
- Harassment and threats are illegal. A debt collector may not do anything that could be considered harassment, including threats of violence or other verbal abuse, such as profane language or obscenities. A debt collector may not lie to you. The collection agency must state its true name and may not represent the amount owed. It also may not threaten any sort of action that it does not intend to take, such as seizure of property or the filing of a lawsuit.
If you are being harassed by a legitimate or fraudulent creditor or collection agency do not hesitate to take action. You may contact local authorities as well as speak with an attorney.
If you have already filed for Chapter 7 bankruptcy these types of calls should stop if you have the protection of the automatic stay. Speak with your bankruptcy lawyer if they continue.
The bottom line is to be careful and look out for yourself. If you suspect something isn’t quite right with the person on the other side of the line, hang up immediately and report the call.