The Department has seen an increase in complaints involving fake debt collectors attempting to collect on false debts. We have provided some simple steps to avoid falling victim to a debt collection scam.
How Debt Collection Scams Work
Fake debt collectors start by contacting you by phone, text message, mail, or email. The collector claims that you owe a debt. The debt may be completely fake, not even yours, canceled, discharged in bankruptcy, forgiven, or beyond the statute of limitations or “time-barred,” which means a debt collector cannot sue you or threaten to sue you for it.
Before paying the collector, make sure that the debt is a valid debt you owe and not just a scam. The scammer will use various techniques (lies, intimidation, harassment) to get you to pay. Use the following tips to help recognize when you’re the target of a scam and what you should do to protect yourself.
Red Flags
You do not recognize the debt
You might be correct if you think the debt is entirely false or the amount is incorrect. The debt collector might be attempting to collect a debt that is fake, canceled, discharged, forgiven, or past the statute of limitations.
The debt collector won’t identify themselves
Debt collectors are required to disclose their identity when they contact you. A scammer may refuse to tell you this information.
The debt collector threatens you or lies to you
Debt collectors can’t threaten to report you to the police, pretend to be an attorney or from the…
