Getting a call from a debt collector can be stressful. But it can be downright frightening when the caller uses lies, profanity and threats to try to get you to pay. In a case announced today, the FTC says a debt collection operation in Charlotte, NC pretended to be lawyers. Really, they were not lawyers and had no authority to collect debts.
The FTC says the “collectors” used a variety of names to make people think they were dealing with a law firm. The imposters told people they were delinquent on a payday loan or other debt and threatened them with arrest, jail time, or getting sued unless they paid by credit or debit card over the phone.
Sometimes, the callers had personal information, like Social Security and bank account numbers, or relatives’ names. The callers used this information to convince people that the calls were legitimate.
In truth, the FTC says, the defendants pressured people into paying debts they never owed.
You can’t be arrested for not paying your bills. If a debt collector calls about a debt – and before you agree to pay anything – ask for a written proof that says how much money you owe and to who, and what to do if you don’t think you owe the money. By law, debt collectors have to send you a written document, called a validation notice, within five days after they first contact you. If they don’t, that’s a warning sign that they may not be legitimate.
Debt collection complaints account for nearly one-third of consumer complaints to the FTC. If you, or someone you know, has gotten a suspicious debt collection call, report it to the FTC. With your help, we’re finding the bad guys and putting them out of business.
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YOu can report that to the FTC at www.FTC.gov/Complaint. The information you give will go into a secure database that the FTC and other law enforcement agencies use for investigations. You can also report to your state Attorney General. Look for your Attorney General on this page.
The comments you put here on the blog don't go into the law enforcement database.
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The law says a debt collector must send you a written “validation notice” within five days of the first time he contacts you. That written notice must tell you:
- how much money you owe
- the name of the creditor you owe it to
- what to do if you don’t think it’s your debt
A debt collector doesn't have the power to send to jail by himself becuase you owe money. If somebody calls and threatens you about going to jail because of a debt, or tells you to wire money, he's probably a scammer.
If someone says you have a debt, tell them to send a written validation notice. Get his name, company name, address, and telephone number. If he won't send the validation notice or give you information about the company, don't pay. He's probably a fake.
Read about your debt collection rights.
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