It’s spooky season, and the Better Business Bureau is warning the public to be aware of debt collection scams.
As Halloween approaches, the Better Business Bureau (BBB) is warning consumers about one of the most frightening scam types out there — zombie debt, also known as debt collection scams.
Victims often report that scammers harass them for weeks or even months, both at home and at work, trying to get them to pay a debt they don’t even owe. These ‘zombie,’ or ‘phantom’ debts seemingly appear out of thin air, and BBB receives numerous reports throughout the year as con artists proverbially “put on a new disguise,” or rather change tactics, to steal your hard-earned money.
How it works
The scammer calls and says that they work for a loan company, law firm or government agency, and claim to be collecting an overdue payment.
After replying that you don’t owe money, the “debt collector” starts threatening to file a lawsuit, have wages garnished, issue an arrest warrant, or arrange for a court appearance.
All of these claims are nerve wracking, leaving the person answering the phone rattled and unsure. They may even begin considering that perhaps they do owe money after all.
The first thing to do is to stay calm. Despite the threats, these alleged “debt collectors” don’t have any legal power. In most cases, the alleged overdue loan doesn’t even exist. Don’t give in and pay money you don’t owe, otherwise they’ll call back for more.
The “Good Cop”…
