Debt Collection Scams
Consumers Need To Be Aware
Despite the existence of laws to protect you against unethical, unlawful and intimidating actions from debt collectors, some of these actions persist and there are a few continuing debt collection scams you need to be aware of so that you can protect yourself against them.
Attempts To Collect On Expired Debt
The first one is an attempt to collect a debt which is barred by your state’s statute of limitations. Sometimes companies buy old debts and then try to collect them. They pay very little of the face amount of the debt and then try to collect the debt from you. They count on you not knowing what your state’s statute of limitations is which, depending on your state, might range from three years to seven years. Always ask in writing for verification of any debt which a debt collection agency claims you owe. Then check to see if the debt is barred by your state’s statute of limitations. If it is, write the company and state clearly and forcefully that you are not going to pay the debt and for the agency not to contact you anymore. All communications with the debt agency should be in writing and sent by certified mail, return receipt requested.
Illegal, Intimidating Letters
Another common element of debt collection scams is sending out letters which appear to be from an attorney’s office or government agency. This practice is strictly prohibited by the Fair Debt Collection Practices Act. If you fall victim to either of these scams, contact your state or local consumer protection agency as well as the Federal Trade Commission. You should also discuss your situation with a local attorney as you may be entitled to sue the offending company for monetary damages.
Knowing your rights is the best defense against falling prey to scams and unfair and illegal collection actions.
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