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You can avoid debt collection scams by asking for a written debt validation letter, avoiding providing personal or financial information, getting additional details from the collector, watching out for threatening behavior, blocking or ignoring calls, knowing all of your rights, and keeping an eye on your credit reports.
By now, all of us are used to the deluge of spam calls we receive every day. While these calls vary in their content—from your car’s extended warranty to free stays in fancy hotels—their aim is always the same: steal your personal information or your money.
One of the more difficult scams to spot has to do with fake debt collection calls, especially if you do have legitimate debts that you owe. These scammers have sophisticated techniques to convince you that they are authorized to collect money from you.
Fortunately, there are techniques to spot these scams before you’re taken advantage of by fake collection companies. Read on to learn tips to stop debt collection scams.
1. Ask for a written debt validation letter
When you’re first contacted about a debt, make sure that you ask the caller to verify the debt by sending a written debt validation letter. By law, debt collectors must send you information about how much you owe and who the original creditor for the debt was.
Once you’ve received the letter, you can verify that the debt legitimately belongs to you, following up with the original creditor if necessary. If the debt collector refuses to provide debt validation, it’s likely that they are not authorized to collect the debt—or the debt never existed in the first place.
Bottom line: The law requires debt collectors to provide a validation letter for any legitimate debt.
2. Avoid providing personal or financial information
Scammers are often keen to ask you to “confirm” personal or financial information, like your Social Security number, credit card numbers or checking account details. You do not need to provide this information.
Additionally, a debt collector may have your personal or financial information, but that does not mean that they are legitimate. Sensitive information is frequently leaked online, so a scammer may have purchased or acquired your personal information in an attempt to steal your identity or lure you into a debt collection scam.
As a general rule, you should only provide sensitive information when you know that you’ve specifically called a trusted financial or government institution. When you receive a call, there’s no way to know for sure who is calling, so it’s best to err on the side of safety.
Bottom line: Don’t share your personal or financial information when you receive a call, as scammers can use these details to steal your identity or convince you to send them money.
3. Get additional details from the collector
You can often determine whether a collector is legitimate by asking for additional details about the caller and what they’re saying.
Make sure you ask for the collector’s name and the name of the agency they work for. Some callers also identify themselves as members of law enforcement or attorneys. In those cases, ask for names, badge numbers, agencies or law firms. If a caller indicates that a lawsuit has been filed against you, ask for the court where the suit was filed as well as the case number.
In most cases, scammers will be unwilling or unable to provide all of this information. If you do get specific information, you can follow up by calling creditors or law enforcement directly to verify the claims.
Bottom line: Press the collector for specific details, like their name and the collection agency they work for.
4. Watch out for threatening behavior
Sometimes, scam debt collectors will pressure you to pay quickly over the phone. Often, they’ll use serious claims to motivate you to act quickly—for instance, they’ll tell you that you have a warrant for your arrest or you will serve jail time if you don’t pay immediately.
Scammers may also tell you that others in your family may suffer consequences, that you will lose your job or that your debt amount will skyrocket if you don’t provide payment over the phone. Debt collectors cannot send you to jail or make threats for non-payment.
Whether the debt collector is legitimate or not, threatening behavior is never permitted. Federal law specifically governs how debt collectors must behave, so you have recourse regardless of whether the debt is legitimate. If you believe the debt collector is a scammer, simply stop engaging until you receive debt validation. On the other hand, if the debt collector is legitimate but behaving in a threatening way, you can file a complaint with the Federal Trade Commission (FTC).
Bottom line: Debt collectors are forbidden by law to threaten you, and extreme claims about jail time or immediate need for payment are often indications of a scammer.
5. Block or ignore repeated calls
If you’re receiving numerous debt collection scam calls, consider blocking or ignoring these calls. Here are a few tips for blocking spam calls:
- Watch out for “spoofed” numbers. The number a scammer calls from rarely belongs to them—instead, they temporarily use someone else’s number. Be wary of unfamiliar numbers that start with the same six digits as your own.
- Some carriers and phones offer spam-blocking software. Call your cell phone carrier and ask if they have any features for blocking spam calls, or search your phone’s app store for highly rated apps that can block spam calls.
- Only accept calls from known numbers. Many phones allow you to only accept calls from trusted contacts, sending all other callers to voicemail. This feature can be helpful, as many scammers won’t leave voicemails or will leave robotic voicemails that can simply be discarded.
If you do need to accept calls from unfamiliar numbers—for instance, because you’re waiting for an important phone call—make sure that you’re careful when answering the phone.
If a caller identifies themselves as a debt collector, keep it short. If you don’t have any outstanding debts, simply say, “This debt does not belong to me,” and hang up. If you know that you have legitimate debt, ask for a validation letter and contact information, then end the call.
Bottom line: If possible, ignore calls from unfamiliar numbers or install spam call-blocking software on your phone. If you do accept a call from someone claiming to be a debt collector, keep the conversation short.
6. Know all of your rights
The Fair Debt Collection Practices Act (FDCPA) is a federal law that outlines exactly what debt collectors can and cannot do. Understanding your rights as a consumer offers two benefits: First, you can identify callers who violate these practices as possible scammers. Second, you can file a complaint against a legitimate collector who violates the law.
Watch out for any of the following behaviors, which are prohibited by federal law and could indicate a scam debt collection call:
- Calls outside of the hours of 8 a.m. and 9 p.m.
- Uses profane or inappropriate language
- Makes false claims about your debt
- Refuses to identify themselves or their company
- Claims that you will pay penalties or face punishment for not paying immediately
- Fails to provide debt validation
Most legitimate collection agencies follow the FDCPA guidelines when contacting people, so be wary when talking to anyone who is aggressive or unwilling to provide additional details.
Bottom line: If you’re dealing with a scammer, they likely won’t honor federal laws about debt collection—so make sure you know your rights and avoid scams.
7. Keep an eye on your credit reports
To have the best chance of avoiding scammers, you’ll want to make it a habit to check your credit reports at least once a year, and more often if you’re actively rebuilding your credit.
By reviewing your reports regularly, you’ll know whether you have any outstanding debts—so if a debt collector calls, you’ll be ready to ask for validation. Additionally, checking your credit reports frequently enables you to spot any fraudulent or inaccurate accounts listed on your reports.
Once you’re armed with knowledge about your credit, collection laws and common tactics used in scams, you’ll be prepared to stop debt collection calls with ease. Just remember: ask for debt validation and contact information, avoid providing personal information on the phone and watch out for red flags like threatening behavior.
Bottom line: Staying on top of your credit reports will help you avoid scams and know when you have legitimate debts to pay.
What to do if you’re the victim of a debt collection scam
Today’s scammers can be quite convincing, so many people fall victim to fake debt collection calls by providing personal information, financial information or even payment.
If you’ve been the victim of a scam, act quickly by taking the following steps:
- Freeze your credit: Contact the three credit bureaus and ask them to freeze your credit immediately—that way, no one can open a new line of credit in your name.
- Watch out for identity theft: File a report with the Federal Trade Commission and IdentityTheft.gov.
- Contact your bank and credit card providers: Get new credit cards and change your bank account information if it has been compromised.
You should also change account passwords for your email and financial accounts. Finally, consider contacting local law enforcement to report the scam.
Having your identity stolen can lead to fraudulently opened accounts, so you’ll want to ensure that your credit reports do not contain any misleading information. The work of a scammer could damage your reputation, so make sure you stay vigilant about monitoring your credit if your information is stolen.
Often, it can be helpful to work with a credit repair company to review your reports and file disputes after a scam. Consider reaching out to the credit repair consultants at Lexington Law Firm, who are trained to contact credit bureaus on your behalf and ensure your information is accurately reported.
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