So if a debt collector pushes you to pay immediately, be very cautious. Keep a copy for your records. 445 Minnesota Street, Suite 1400
The debt collector cannot collect for any debt that cannot be verified. However, if you make a payment, the statute of limitations could reset, which would refresh the collectors right to sue you. Scammers like to use intimidation and fear to get payments. A caller may be a fraudulent debt collector if: If you think that a caller may be a fake debt collector: If a caller refuses to give you all of this information, do not pay! The debt may be completely fake, canceled, discharged, forgiven or beyond the period for collection. The collector refuses to give you their contact information. have you arrested or to report you to a law enforcement agency. Learn more: How to Request an Attorney General Opinion, Learn more about your debts by getting your. The collector refuses to provide proof that you owe the debt. If a company that calls you is not registered, that likely means it is a scam or acting illegally! Contacting you out of the blue, claiming to be from a debt collection agency. Collectors cannot threaten to have you arrested or charged with a crime if you dont pay a bill. And you have rights as a consumer. download Word viewer for free). Find their contact information by visiting their legitimate website. telephone calls from people trying to collect on loans the consumers never received or on
However, there are quite a few scenarios that are not so straightforward. Attention: Consumer Services Unit
The Official Website of the Minnesota Attorney General, 445 Minnesota Street, Suite 1400, St. Paul, MN 55101
You also cant be sued in any county other than where you lived when you signed the contract or at the time the lawsuit was filed. TTY: (866) 653-4261
Lets say you knew that one of your debts would be sent to collections. about the consumers they contact, including their name, address, the last four digits of their
Recognize, report and recover from cybercrime. The FDCPA also restricts debt collectors from trying to collect any debt in dispute. Consumers need to be on the alert for scam artists posing as debt collectors. Before you pay any debt to any collector, confirm that the debt is real and valid. However, a collector can (and most probably would) provide the information even if you request verification after the 30-day deadline has passed. Maryland law affords consumers protections against fraudulent debt collectors. The more we know about current scams, the more likely it is we'll be able to identify or prevent similar scams in the future. Questions or comments regarding the DLLR website may be directed to webmaster@dllr.state.md.us. The fraudsters resort to threatening tactics and use a variety of generic and government-sounding
If the collector is referencing a debt you have no recollection of and that debt isnt even on your credit report, that should raise a red flag. You could be the target of a scam or an error. The callers will also describe themselves
Contact the Office of the Commissioner of Financial Regulation at the
So, some debt collectors are real, and they're acting on behalf of the company to whom you owe money. Some Minnesotans have reported that fraudsters pretending to be debt collectors have contacted them to demand payment for an Internet payday loan or other financial obligation that the consumer never made, or another debt to a creditor that the person does not owe. Social Security number and bank account information. Real debt collectors will accept normal, trackable payments (e.g., check, traditional credit card, etc.). Validation Important: You technically must submit the dispute/verification request within 30 days of when you received the required information (the validation) from the collector. St. Paul, MN 55101
Some debt collection scammers try to defraud Minnesotans out of money they do not even owe, making a difficult financial situation even worse. Demands that you give your credit card number or banking information immediately to avoid arrest or to capitalize on a settlement offer. This occurs for several reasons: the original creditor may have made an accounting error, you may be a victim of identity theft, or the creditor may have found the wrong person with a similar name. as "officers". The caller is seeking payment on a debt for a loan you do not recognize; The caller refuses to give you a mailing address or phone number; The caller asks you for personal financial or sensitive information; or. Tell the caller that you refuse to discuss any debt until you get a written "validation
Whats worse is that sometimes collectors may contact consumers about debts that are not legitimate. Make sure that what the collector told you lines up with what your credit report indicates. other threats of immediate legal action. may be directed to DLFRFinReg-DLLR@maryland.gov. Baltimore, Maryland 21202, You can also fax to:
Ask them to provide their full name and the companys name, address, phone number, website address and email. Pressuring you into paying immediately often by gift cards or wire transfer by threatening to damage your credit rating or report you to a credit agency. This is your right according to bullet #4 above. Under the federal Fair Debt Collection Practices Act (FDCPA) and other state laws: The following conduct by a debt collector may be red flags that you are being targeted by a phony collection scam: In this age of technology, scam artists are sometimes able to obtain detailed personal information about a person, including banking information and even the last four digits of a Social Security number. To protect yourself from a creditor collecting something they dont deserve to receivesomething you dont oweyou will need to take an important, and time-sensitive step: verify the debts legitimacy. Verifying the debt can ensure that you do not fall for one of their tricks and restart the statute of limitations. Scammers often utilize tactics to encourage you to act quickly and will use false information to persuade you to send money or personally identifiable information (PII). Ask them to place a fraud alert on your credit report. If they don't seem to know enough about you, there's a good chance they're a scammer. www.mn.gov/commerce. Paying a fake debt
immediate payment of the debts, fake or otherwise. [3] DMPs are legal agreements between you and your creditors. You may also contact the Federal Trade Commission
below. In addition to your rights under the FDCPA, described above, you can try a few other tactics to verify a debt. Ask an Expert: How Frequently Can I Open New Credit Cards without Hurting my Credit Score? Stop! Asking you to provide personal information, such as your Social Security number or bank account information in order to process your payment. In some cases, you may receive a collection call that you were fully expecting to receive. On the other hand, the collection attempt may not be legitimate. Learn how to recognize, report and recover from this type of scam. You knew you that your delinquent account was sent to collections, you remembered exactly what you owed, and you knew the collector would be making attempts to collect. Spot check Do your research to double check that the debt collector is who they say they are. You won't go to jail for your debt, so if the collector says that you will, they're lying. Your rights to clarify the legitimacy of a collected debt come primarily from the Fair Debt Collection Practices Act (FDCPA). Ask the caller for his or her name, company, street address, and telephone number. Remember, scam artists do not follow the law, and verifying or disclosing any such information could make you more vulnerable to identity theft. The FTC recently announced an enforcement action in this area
and the Commissioner joins in advising consumers to be on guard. In any case, the scammer will use all sorts of techniques to get you to pay intimidation, lies, harassment, etc. fraudulent debt collectors are employing a variety of tactics in an attempt to commit theft. They insist that you pay the full amount of your debt immediately. Collectors cannot harass, oppress, or abuse you or any other person they contact. Federal Trade Commission
If you send a letter within 30 days disputing that you owe the money, the debt collector cannot make further collection efforts until you receive proof of the debt. When faced with a questionable situation online, always follow the three golden rules to spot a scam: Slow it down Debt collection scammers often create a sense of urgency. This can help ensure that the original creditor did in fact sell the debt to the collector as the collector claimed. It was a credit card bill for $500. Scammers survive by getting people to pay fake debts before they have a chance to realize they're being scammed. : If you owe money, the lender will sometimes hire a debt collection agency to try and get you to pay. You are contacted by a collector about a debt you dont recognize. Something is not adding up. However, real debt collectors still have to obey the law. Note: When you get your credit report, review it carefully for false, outdated, or inaccurate entries. It is not uncommon today for people to be pursued by debt collectors for money they don't owe. Many of the phony debt collection scams that are currently operating pretend to be collecting money in connection with a short-term, payday loan that the consumer never even took out. Possible Scenarios Heres How to Tell if the Debt is Legitimate, Tips for First-Time Veterans and Military Homebuyers, Your right to dispute the debt within 30 days and their right to assume the debt is valid if you do not, Your right to dispute the debt within 30 days, and that they will provide verification if you do, Your right to request the name and address of the original creditor within 30 days, and that they will provide the information if you do. But debt collection scammers probably don't have all of your info already, so they'll ask for it. As a society, the more people that report online scams and fraud, the more national reporting data that is collected, and the better chance law enforcement has to catch the criminals and decrease cybercrime. advisory (Word document, 61KB,
Texas consumers have reported many tactics used by debt collection scammers. Q: Is it wise to apply for a credit card within three months of applying for one even if I already have seven other open credit cards? It's very simple: Someone contacts you often by phone, but also by text message, fax, mail or email and claims that you owe a debt. You may be upset, but trying to get revenge will not work. This will be helpful if you need to file a police report or take legal action against the scammer. Maybe you are a co-signor and simply forgot about taking responsibility to cover the debt, or maybe there is a genuine error. For additional information, or to file a complaint, please contact the Minnesota Attorney Generals Office as follows: Office of Minnesota Attorney General Keith Ellison
You should act quickly to ensure your compliance during this timeframe. Verification Commissioner of Financial Regulation
The Minnesota Attorney Generals Office values diversity and is an equal opportunity employer. Threatens to have you arrested or to send law
Specifically, they can not swear at you, threaten to harm you, call you repeatedly in an attempt to annoy you, call you without disclosing their identity, or publicize your name as someone who refuses to pay debts. Once you submit the letter, the collector cannot contact you to make collection attempts until they provide you with verification of the debt. enforcement officials to your home, or makes
Youve found your person and now youre starting a new life together. Congratulations! Verification is Worth It The fraudsters have also threatened to garnish a persons pay check or bank account, submit affidavits to the court against the person, or send an official to serve the person with a summons. These are simple and quick, and could be done before or after you formally dispute the debt. Real debt collectors will often try to get payment quickly, but if your collector is being very pushy, you should be suspicious. These steps may simply jog your memory about the debt if you have forgotten, or they could affirm your suspicion that the debt is not legitimate. The amount looks wrong to you. Attention: Consumer Services Unit
The notice must include the amount of the debt, the name of the creditor you owe,
money from you. Take your time to avoid being rushed into a bad situation. If you are contacted by a collector about a debt that does not sound familiar to you, then you should probably dispute the debt, in accordance with your rights under the FDCPA. If you sent funds via gift card or money transfer, report the scam to the issuer. Second, you can contact the alleged original creditor to inquire about the debt. Do not be taken in by a phony collection scam simply because the fraudster provides some accurate personal information about you. One of the surest ways to avoid a debt collection scam is to know all of your real or valid debt. Scammers don't want to be found, so they often insist you make a payment by Visa gift card, iTunes gift card, wire transferor some other untraceable method. If you believe you are the target of a scam, file a complaint with the Commerce Department, the Federal Trade Commission, and the Attorney Generals Office. The information provided by the collector is called the validation notice. The CFPB gives two important warnings about this. Other means of verification Under the law, collectors cannot use any false, deceptive, or misleading statements when trying to collect a debt. After receiving the validation notice, you can dispute the debt, which means you will submit a letter to the collector, demanding that they verify the debt. Verifying the debt will ensure that you do not pay money to a scammer and can clarify the origin of the debt. Download this
(800) 627-3529 (Minnesota Relay), Debt Collection When You Don't Owe the Money. Then file a complaint with us. Search for the company name on the internet, review their website, call their number, etc. You should report violations to the FTC as follows: Federal Trade Commission
They may also use intimidation tactics to try and get you to pay. company names. If you cannot obtain an address by which to contact the collection agency in writing, you may be the target of a scam. Scammers pose as debt collectors to steal your money or personal information. Questions or comments regarding the Commissioner of Financial Regulation
85 East Seventh Place, Suite 280
(651) 296-3353 (Twin Cities Calling Area) (800) 657-3787 (Outside the Twin Cities)
Send the agency a letter by mail asking them to confirm their debt in writing. They are required to tell the other two agencies about your fraud alert. Copyright 2022 Cybercrime Support Network. Collectors who go after zombie debt are known for using especially deceitful tactics. In other cases, the scammer may promise to help you repay what you owe. The process may just reveal that you owe the debt, but at least you will have peace of mind from knowing who to pay and how much to pay. These fraudulent debt collectors threaten consumers with legal action unless they make
notice." As the CFPB explains, these are: A collector must provide this information during the first contact with you or via a written notice within five days after initially contacting you. For those of us seeking affordable access to housing or the promise of a maintenance-free lifestyle, renting is an option that many people choose. The debt is very old and may be zombie debt. When debt is of a certain age it passes the statute of limitations (which varies by state law). Break off contact with them and file a complaint. Whenever someone tries to collect a debt, ask for all of their company's information, including: Request all of these details. Repeatedly calls you over the phone and wont provide anything in writing. First of all, the law prohibits debt collectors from lying, threatening you with things they can't do or posing as government officials. Consumers
Your letter essentially just needs be dated and needs to say I dont owe this debt unless you can prove it, so prove it. To make the letter a bit more formal than that one-liner, consider using the free template from the CFPB. They may make up another debt to try to get more
They might be able to help you stop the transaction. Being Bothered by a Debt Collector? Phony collection scammers can be extremely aggressive and sometimes threaten to send the sheriff to have a person arrested if the person does not pay immediately. If they refuse to answer all of your questions, there's a good chance you're in the middle of a scam. The caller exerts high pressure to try to scare you into paying, such as threatening to
There are several common tactics that debt collection scammers use to trick people into giving them money or personal information, such as: If you are contacted by someone about debt that you owe, there are some red flags to look for that may indicate that you are being scammed, such as: If you think you are the victim of a debt collection scam, it is important to take action right away to protect yourself and your finances. Refuses to give you the accurate name of its agency or mailing address, or gives you inaccurate or non-functioning telephone numbers. or or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. These scammers can be very convincing, which is why you need to spot the signs of a fake debt collection: Real debt collectors already know much of your information e.g., how much you owe, your address, social security number, birthday, etc. Within five days after the debt collectors initial contact, the collector must send you a statement of the total amount owed to the creditor. They may be pushy, aggressive or use threatening language to force you to act quickly. They try to intimidate you by threatening you with jail time, fines or garnished wages. callers to collect from them. The fraudulent operators may use illegal threats of legal action, arrest, or contacting a persons place of employment to try to bully the victim into immediately disclosing their credit card number or banking information. References a supposed debt that is not on any of your credit reports. Never attempt to "scam the scammer." Tell them you've been targeted by fake debt collectors. Then, search for the collection agency on the internet, and send them a letter by mail asking them to confirm your debts. In todays age of technology, fraudsters use throw-away cell phones to evade detection and make it difficult to track the phone number to a location. (FTC) online to file a complaint
Heres how. Consumers should also be wary of who they are borrowing from, as some payday lenders do not follow Minnesota law and charge rates of interest far greater than those allowed in Minnesota. Finally, contact a major credit reporting agency. File a Complaint about a Charity or Nonprofit, Registration and Reporting - Charities and Charitable Trusts, Registration and Reporting - Professional Fundraisers, Forms and Instructions for Registration and Reporting, Request an Extension of a Filing Deadline, Biography of Attorney General Keith Ellison, Know Your Rights to Abortion and Reproductive Healthcare in Minnesota, Fighting the Opioid Epidemic in Minnesota, Advisory Task Force on Expanding the Economic Security of Women, Advisory Task Force on Lowering Pharmaceutical Drug Prices, Information for Minnesota School of Business and Globe University Students. Consumer Response Center
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