How Debt Collection Scams Work

Debt collection scams typically involve a scammer contacting you through phone, email, or mail, claiming that you owe a debt (which may or may not be real). They’ll often use high-pressure tactics, threats, and intimidation to try and scare you into paying. Some common red flags of a scam include:

• Demanding immediate payment: Legitimate debt collectors will work with you to find a reasonable payment plan.
• Threatening arrest or legal action: Debt collectors cannot have you arrested for unpaid debts.
• Refusing to provide validation of the debt: You have the right to request proof that you actually owe the debt.
• Asking for sensitive information: Never give out your Social Security number, bank account details, or credit card information over the phone or to someone you don’t trust.
• Pressure to pay in unconventional ways: Beware of requests for wire transfers, gift cards, or cryptocurrency. These are often preferred by scammers.

How to Protect Yourself

• Know Your Rights: The Fair Debt Collection Practices Act (FDCPA) outlines what debt collectors can and cannot do. Familiarize yourself with these rights.
• Verify the Debt: If you’re unsure whether a debt is legitimate, contact the original creditor directly to confirm.
• Request Debt Validation: If contacted by a debt collector, request a debt validation letter in writing. This should include details about the debt, the creditor, and your rights under the FDCPA.
• Document Everything: Keep a record of all communications with debt collectors, including dates, times, and the content of conversations or letters.
• Report Suspicious Activity: If you suspect a debt collection scam, report it to the Federal Trade Commission (FTC), the Consumer Financial Protection Bureau (CFPB), and your state attorney general’s office.