Getting calls from a debt collector? You have rights

You get a call out of the blue. The caller insists you owe money and says you’ll be arrested if you don’t pay immediately. You have no idea what she’s talking about. What do you do?

The FTC says that Global Circulation, Inc. (which did business using names like Consumer Impact Recovery and Total Mediation Solutions) used illegal threats like this to trick thousands of people into paying debts they did not owe — to the tune of $9.6 million. To settle the FTC’s claims, GCI will be banned from the debt collection business.

Debt collectors can’t harass you, lie, or treat you unfairly. If you’re getting calls from debt collectors:

• Know that you can’t be arrested or jailed for not paying your bills and there’s a legal process for garnishing your wages to repay debts. If the person contacting you says otherwise, that’s a warning sign that they may not be legitimate.
• Before you agree to pay anything, get “validation information” to make sure you actually owe the debt and if so, that it’s the correct amount. If you still don’t recognize the debt — or if the amount seems wrong — dispute it with the collector by mail and ask for verification of the debt.
• Report debt collectors who break the rules: ReportFraud.ftc.gov.

Learn more at ftc.gov/debt.