Now the question comes in how do you know if a debt collector is a scam? So many people have been trembling due to fear of debt collectors breathing down their necks and hounding them to make payments. According to the Federal Trade Commission, over 154,272 debt collection reports were received in 2021, and more than half of that figure we recorded to be scams.
With so many debt collection reports flying around so many people do not know that they are getting scammed. So if you are about paying a debt you should definitely siezes payment and read through this article first before making a payment to a debt collector. In this article today I am going to be sharing with you various ways to spot a fake or a scam debt collector.
How to know if a Debt Collector is a Scam
Like it or not not all debt collectors are legit and not all debt collection is real so you have to sign your eyes and follow the necessary steps we are going to be losing all this article later so as not to get scammed. Since debt collection is a very big business there are so many fake scammers that might contact you to collect money that they do not know of.
The only thing you can do is simply learn how to spot a fake debt collector so that you will not fall victim to a debt collection scam. Below I have listed some of the best ways how to know if a debt collector is a scam so that you do not waste your money. Therefore without that waste of time let’s go ahead and jump into at least some of the best ways how to know if that collector is a scam.
Warning Signs of Debt Collection Scams
Below are some of the best warning signs of a debt collection scam which should be enough to protect you from getting scammed by someone posing as a debt collector:
1. Withhold the Necessary Information from you
One of the best ways to spot a fake or scam debt collector is when they do not give you all the necessary and vital information for the debt they are collecting. The debt collector is supposed to provide the name of the creditor they are collecting on their behalf, The amount of the Debt they owe, and also that if you dispute they will have to obtain a verification or validation letter for the debt.
Any debt collector that does not provide this is probably a scam you should not fall victim to them. So be sure to request complete information about the debt before taking the next steps. You should request them to send a written validation notice within five business days if they are legit.
2. They Pressure You
Another means that a scam debt collector will use in collecting money from the victim is to simply pressure them by making threats and using scare tactics. They might also decide to play the emotional card and make you feel like a bad person to trick you to pay. They will also want you to pay the money as soon as possible so that they can get away with it do not fall for this status.
You should never pay a debt collector the first time of contacting you even if the pressure is very high you should always find out first before taking the next step.
3. They don’t give their Contact Information
A real debt collector will always give you their contact information if you need it so that you can verify that they are real and also contact them in case of any. When it comes to a fake debt collector they will likely not give you any means to contact them. So what you do in this case is to ask for the debt collector’s company name, address, and phone number. If they cannot provide any it is definitely clear they are scammers.
4. Threatens to tell your friend Family and Employer
Any debt collection agency or collector that is threatening to tell your employer friends or family about your date is definitely a scam. This is because a debt collector is generally not allowed to tell other people about the dept that they are trying to collect from you. The only thing they are permitted to tell others is to ask them about your whereabouts and your information.
5. Unrecognized Debt
Because they are making up a debt that usually does not exist it is quite not surprising that you do not recognize the them that they are asking you to pay. So you should definitely ask questions about the debt that they are requiring you to pay so that you get more information. Before you cannot decide to validate to debt.
6. They Require you to make Payment by prepaid or Money Transfer
Because scanners usually prefer a non-reversible money transfer system they will require you to make payment using a Prepaid card or bank transfer. So that once the money has been wired the money cannot easily be traced back to them and they will be gone for good. So you should definitely verify every that is yours and then make payments in a way that can also be traced back.
How to Protect Yourself from a Scam Debt Collector
- Insist on the identification of the debt collector to not make any payments without identifying the debt collection agency.
- Also demand information about the date that they are requiring you to pay.
- Verify if the debt they are requiring you to pay actually exists and is yours.
- Check your credit report if they did exist in it.
- Do not give your personal data to any suspicious or debt collector.
- Do not respond to threats from a debt collector.
- Report any suspicious death collector to the appropriate authority.
These are some of the best ways that you can use in protecting yourself from a debt collector scam. So make sure to go over this article on how to respond to spot a scam and how to protect yourself before making any payment to a debt collector.