Debt collection scams are one of the most frightening and persistent types of cons. BBB warns consumers to be on the lookout for a new twist that claims to be collecting on cash advances.
The scam works like this. You receive an automated call allegedly from a company claiming to be collecting payment for a cash advance. The recording prompts you to stay on the line and speak to an agent. These calls often turn threatening and the ‘agent’ requests you pay your debt immediately using a wire transfer or prepaid debit card. If you refuse, the ‘debt collector’ will try to intimidate you using threats of arrest, lawsuits or garnished wages.
Protect yourself from debt collector cons by
• Just hang up: If you don’t have any outstanding loans, hang up. Don’t press any numbers or speak to an “agent.”
• Ask the debt collector to provide official “validation notice” of the debt. In the US and most of Canada, debt collectors are required by law to provide the information in writing. The notice must include the amount of the debt, the name of the creditor and a statement of your rights. If the self-proclaimed collector won’t provide the information, hang up.
• Ask the caller for his/her name, company, street address, and telephone number. Then, confirm that the collection agency is real.
• Do not provide or confirm bank account, credit card or other personal information over the phone until you have verified the call.
• Check your credit report. Check with one of the 3 national credit reporting companies: Equifax, TransUnion, Experian.
• Place a fraud alert on your credit report. If the scammer has personal information, place a fraud alert with the three national credit reporting companies.
For more information, visit bbb.org. To report a scam, go to bbb.org/scamtracker.
~ Shelley Polansky, VP/Marketing, Communications & Outreach