Avoiding Debt Collection Agency Scams
Debt Collection Agency Scams Are EVERYWHERE.
Debt collection is a pretty popular business what with a good majority of consumers owing some kind of debt. Organizations and individuals alike have found that using debt collection firms makes it easier to conduct business. Finding clients who owe money and getting them to comply can be a tough endeavor; hence, the need for collection agencies. However, this need has also fueled the growth of different kinds of scams. Individuals who pretend to be part of legitimate collection agencies hound debtors to get money from them. It is why some people have become so wary of debt collectors.
The Collection Firm is one of the most reputable agencies that operates in the United States and globally. In over 20 years, the firm has worked with clients from over 50 countries. Professionals from the Collection Firm are not only trained but have a clear understanding of the national and international financial laws that govern debt collection practices. Debtors should learn about the different kinds of scams out there and how they work so that they can keep an eye out.
How Debt Collection Scams Work
Scammers succeed by finding the information they need to pose as legitimate collectors. You will find that a fake collector has your Social Security number, full name, address, and other contact information. They are very meticulous at obtaining information on debtors, which is why some of them work so well.
Identity theft is one way that fraudsters retrieve the information they need. The tactics they use are the same ones utilized by traditional identity thieves such as stealing wallets, credit card receipts, or bank statements.
Another way your information ends up with illegitimate debt collectors is through fake payday loan websites. It has become a trend nowadays for fraudsters to create phony website claiming to offer quick cash loans. When you apply for a payday loan, you provide personal information, which includes your name and contacts. The loan never comes, and you make assumptions that it simply did not pass approval.
Debt collection scammers have also been known to purchase credit reports illegally. The black-market online makes it possible for people to buy anything under the sun. Credit reports contain a lot of information, including who you owe money to, so it is easy for fraudsters to impersonate official collectors.
You may wonder how a fake debt collector manages to defraud money out of debtors. For one, they are very persuasive and persistent. These fraudsters use various tactics to play the part of a legitimate firm.
A legal debt collection business accepts payment through several methods, ranging from debit cards to online to mail. However, scammers insist on a specific mode of payment. For example, one of the biggest collection scams in recent years involved a payment method called the Green Dot Money Pak card. Scammers told debtors to buy the card and load it with money for payment and then they would transfer it out into their own cards. The scheme collected about $30 million.
Fraudulent collectors also insist on immediate payment and threaten debtors with severe penalties such as lawsuits and credit score damage if they fail to comply.
Illegitimate collectors also convince debtors by claiming to belong to some form of government agencies.
How to Avoid Them
There are ways to avoid falling into the trap of fake collection agents. One of that is to ask the caller to provide your information. Try to get details such as the creditor’s name, the amount of debt or the billing address. If they can’t provide this information or refer you to the original creditor, then something is wrong. You should also watch out for collectors who refuse to provide any information about themselves.
Doing your due diligence will save you from falling prey to fraud schemes. Before you can even think about paying a supposed debt collector, conduct research and find out the legitimacy of the company. You may even be lucky and learn that the number is listed as a fraudulent operator.
You should know the rules that debt collectors have to adhere to when dealing with debtors. For instance, a collector who uses abusive language to try and scare you into payment should ring warning bells.
Another way to tell if you are falling into a fraud scheme is if your call gets an immediate answer. When you call the firm, and an agent picks up immediately without going through a receptionist or an automated service, then there is a problem. You can also tell it is a scam if you call multiple times and keep getting the same agent.
The Collection Firm insists on establishing lasting relationships with clients to build solid relationships that strengthen the reputation of the company. Both debtors and creditors can count on fair practices during debt collection from the agents at The Collection Firm.