Protecting Yourself Against Debt Collection Scams
The government is stepping up to bat as collection scams rise. In the news recently, Buffalo New York has been home to a number of unlawful debt collection practices, and police have arrested at least twelve people who have broken regulations. Although the vast majority of collection agencies are legitimate and good for the economy, there has been a rising amount of deceptive and illegal practices.
In Buffalo, people have been caught calling up debtors and posing as law enforcement. They have threatened to send people that owe money in jail, or even take child custody away from them. And it doesn’t stop there.
A recent civil case imposed a $675,000 penalty ever imposed on a debt collection business, for illegal and deceptive practices. This includes badgering and lying to consumers, disclosing their debt to third parties, and cashing in on post dated checks early. These tactics were accompanied by deceptive claims from agents saying they were lawyers or other figures of authority.
In addition to refusing to reveal the address or phone number of the “company” these agents even went as far as to call people who were not in any debt at all and attempted to collect money from them. Even though the owners of said companies alleged that it was individual workers acting fraudulently, the Federal Trade Commission went after the business owners and won a case that imposed the biggest penalty ever for debt collection agencies.
To skirt around the issue of being a victim to fraudulent debt collection agencies, it is crucial that you know your rights. A debt collection company is never permitted to seize a debtor’s assets, bank accounts, or paychecks. They are unable get a debtor fired from their occupation, and cann’t make any kind of public disclosures concerning the debt, and they can definitely never threaten or engage in violent acts.
For further information, consult the Fair Debt Collection Practices Act, which outlines the regulations and rules of collection agencies.
Mallory McGuinness is employed by a collections agency that works with a debt collection lawyer. Also, she writes stories on business, finance, the credit industry and collections agencies. Get a totally unique version of this article from our article submission service