Debt Collection Scams: Protecting Yourself
The government is stepping up to bat as collection scams rise. In the news recently, Buffalo New York has been home to a number of unlawful debt collection practices, and police have arrested at least twelve people who have broken regulations. Although the vast majority of collection agencies are legitimate and good for the economy, there has been a rising amount of deceptive and illegal practices.
In Buffalo, debt collectors have been caught calling up debtors and saying that they are law enforcement. They have threatened to send debtors to prison, or even take child custody away from them. And it doesn’t stop there.
A civil case recently imposed a $675,000 penalty, the most ever fined for a debt collection company, for deceptive and illegal practices. This includes lying to consumers and badgering them, disclosing their debt to third parties, and cashing in on post dated checks early. These tactics were accompanied by deceptive claims from agents saying they were lawyers or other figures of authority.
Refusing to let consumers know the address or phone number of the “business” these bill collectors even went as far as to contact individuals who did not owe any money at all and attempted to collect from them. Despite claims that it was individual workers acting fraudulently, the Federal Trade Commission went after the business owners and won a case that imposed the biggest penalty ever for debt collection agencies.
To skirt the issue of being a victim to fraudulent collection agencies, it is imperative that you know your rights. A collection company can never seize a debtor’s assets, bank accounts, or paychecks. They can not get a debtor fired from their occupation, and cannot make any kind of public disclosures concerning the debt, and they can definitely never threaten or engage in violent acts.
To be more informed, refer to the Fair Debt Collection Practices Act, which will list the rules and regulations of collections.
Mallory McGuinness works for a collections agency that works with a debt collection lawyer. Also, she writes stories on business and finance, consumer spending and collections agencies.
