An investigation by the Federal Trade Commission (FTC) that uncovered a phony debt collection scam run by a California man in conjunction with debt collectors in India, which collected more than $5 million in two years, has shown the dangers of fake debt collectors. While the fake agency, known as American Credit Crunchers, has been shut down, the FTC is warning that phony debt collectors are still a major threat to consumers in California and across the nation.
So, how can you protect yourself from phony debt collectors?
To keep yourself and your family as safe as possible from fake debt collectors, Daily Finance has outlined several actions you can take.
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- Pay attention to what the collector is saying over the phone, not whether they have a foreign accent.
- Threatening to arrest you over a private debt is illegal, and those who are using such tactics may be attempting to cover up other wrongful activities.
- Ask lots of questions about the debt and the identity of the agency. Also, request a written “validation notice of debt,” which is required by the Fair Debt Collection Practices Act. Fake collectors will refuse to provide this.
- Be aware of your actual debt and who you owe it to. Fake collectors will try to make you pay for debts you actually owe to another organization or for completely false debts.
- Ask your original creditor if the debt has been sold to another agency and, if it has, the identity and contact information of the company.
