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Thread: Debt collection scam-Be careful

  1. #1
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    Default Debt collection scam-Be careful

    I got a frantic email from my ex husband, who'd been called about a "legal matter" I supposedly had.

    It was a scam and a darn good one. They claimed to be a litigation firm, threatened to sue me for $2,000, if I didn't pay a debt immediately and they prefer if I did it with a prepaid credit card. They had my name, an old address, the last 4 of my SS number and date of birth. They knew I had an account with a certain bank and when I closed it.

    If you receive any calls from a debt collector, they are required to identify themselves as debt collectors, can't lie about being attorneys, law enforcement, etc. They must send you written proof that they can collect the debt, via snail mail only, their company name, mailing address and license number. They can't threaten to take any action that they don't intend to take or aren't legally allowed to take.

    I used to be a debt collector and they had me wondering if they were a scam or just sucked at their job, because they were actually really slick, until I started quoting FDCPA requirements and basically threatened them into submission. There were two major red flags, but the rest of their act was pretty convincing and the only reason I caught it was because I'm well versed in FDCPA laws.

    My mom may have fallen for it, as would many others. So, spread the word and encourage people to be careful.

    Some really good tips for identifying a collection scam are here: http://blog.credit.com/2014/09/how-t...llector-95177/

    And your rights when dealing with a debt collector: http://www.credit.com/debt/top-10-de...ection-rights/

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  3. #2
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    Default Re: Debt collection scam-Be careful

    These scumbags are proliferating like cockroaches. One could theoretically make decent coin going after them since the penalty is 1k per infraction.

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    Default Re: Debt collection scam-Be careful

    These aren't real debt colectors. They've found a way to gain access to personal information somehow, whether it's fraudulently obtaining credit reports, posing as a debt buyer or using public records to get basic info. They use that information to bully and threaten people into paying debts that either don't exist or that they have no business collecting.

    It's very convincing. They're US based and are really good at threatening. Had I not known certain things about FDCPA laws, I wouldn't have been able to verbally destroy both the first level thug or her boss.

    Most collectors are complete scum, but they will stick to basic FDCPA laws, like providing the company name and address. I quit, even though I was really good, because I couldn't stand hearing people treating debtors like shit and the constant yelling. I did well because I was actually nice and respectful. Go figure.

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    Default Re: Debt collection scam-Be careful

    Thank you for posting this.

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    Default Re: Debt collection scam-Be careful

    Quote Originally Posted by kirakonstantin View Post
    If you receive any calls from a debt collector, they are required to identify themselves as debt collectors, can't lie about being attorneys, law enforcement, etc. They must send you written proof that they can collect the debt, via snail mail only, their company name, mailing address and license number. They can't threaten to take any action that they don't intend to take or aren't legally allowed to take.

    I always ask for their business correspondence address so I can send a verification of debt letter. It's basically a certified letter (they have to sign for it via USPS) you send them asking for them to send all information they have to prove the debt is yours. It would include who they bought the original debt from, how much the debt was, any interest/fines since debt was bought, any contracts from the original company your debt is with. They aren't suppose to communicate with you in any way for 30 days after receiving the verification request to give you time to review the info they send you.

    If they are real, they have to comply. They might try to convince you not to send the letter, but stick to it. If they don't want to give you any info, report what info you do have to your state attorney general (they can investigate if it's a scam, prosecute if a collection agency is being shady). And just in case it really is a debt collector with a real debt, don't admit to anything. Admitting to owing can reset the statute of limitations.

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    Default Re: Debt collection scam-Be careful

    ^^^This, almost.

    Validation is nothing more than a statement of account, gving the original creditors name, identifying information on the alleged debtor and the amount owed. Anyone can generate that and often, if the debt is old, that's all the collection agency has. An unscrupulous debt seller can easily create bogus records with a database program, to boost their record numbers and make more money on a bulk sale.

    What you're after is validation. Proof that the debt is real, the amount owed is accurate and that the company contacting you is the legal owner of the debt. At minimum, you need a copy of the contract obligating you to pay the debt, proof of the sale of the debt, from the original creditor to the current collector (if there's been 4 companies trying to collect on it, you need proof that each of those companies bought it legally,) a final statement from the original creditor and proof of when the last payment on the account was made or the last activity occurred. Also, if there are any interest, finance or collection fees, those need to be detailed and the addition of those fees needs to be supported.

    Before this next part... I am not a lawyer and do not play one on tv. I've never stayed in a Holiday Inn Express. This is my understanding of the law, but it not legal advice. If you need that, contact an attorney.

    If a collector can furnish this information, they have enough to win against you in court and paying or settling is a really good idea. If not, they probably don't. If a junk debt buyer does try to sue and the Defendant asks for a dismissal based on legal standing or demands proof of the amount owed and the collector can't prove it... case dismissed. Easily. Make sure it's dismissed with prejudice.

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