Consumer Alert: Fake Debt Collectors May Come Calling You

So your phone rings and when you pick up, the voice on the other end sounds deadly serious and explains that you owe a debt and they are calling to initiate the payment process.  The problem is, you don’t actually owe the money. It’s a scam.

Don’t worry, you’re not alone.  According to recent news reports, the Federal Trade Commission has been sending out consumer alerts that they’ve received more than 3,000 complaints about this type of scam. Naturally, receiving this kind of phone call can be very unnerving.

It’s always interesting to me that individuals will call when they are getting hounded by debt collectors. The first step I take is to make sure the person claiming the debt can actually prove that that dollar amount is actually due. If you’ve read any of the news accounts on this scam, that’s a key step that both the Federal Trade Commission and the Better Business Bureau suggest that consumer take. You’ve got to validate the debt in owing.

Unfortunately, it is not surprising this type of scam happens because, quite simply, there are a lot of unscrupulous people out there. How about these emails we all get supposedly from “friends” in Europe who want you to forward money to them. You have no idea who they are and you’ve never spoken to them but they try to convince you to send money anyway.

When you receive unsolicited, unclear demands for money, make sure that you verify the situation before actually sending funds. I’ve also had claims in the past that were not scams where there’s been a conflict or an incorrect name of a business or business owner and there is a demand to collect a debt. It’s always wise, scam or otherwise, to make sure you are paying what you actually owe and that the person demanding the money is providing you accurate and fair numbers. 

It doesn’t surprise me to see people be fooled by this scam because receiving a demand letter is a scary situation if it looks like it’s coming from a reliable and truthful source. Before you know it, you’re sucked in by it and you’re cutting a check before really thinking things through.

So what if you write that check? Do you have any recourse after finding out the truth? Unfortunately, the answer is usually “no.”  Many of these scams originate in other states or even other countries.  The chances that law enforcement will be able to track the scammers down is generally slim to none. Not only must they go against today’s advanced technology but, let’s be honest. Law enforcement is generally too burdened with other matters to be able to get to bottom of most cases of this nature. Regrettably, once your money is out the door, it’s out the door for good.

So protect yourself.  If you get this type of call, ask the debt collector to give you an official “validation notice” of the debt.  That notice needs to include the debt amount, the creditor’s name and a statement of your rights under the Fair Debt Collection Practices act.  If the collector refuses to give you this information, just hang up.

If you suspect you are being scammed, ask for the caller’s name, company, street address and phone number so you can confirm that the collection agency actually exists. By all means, don’t give out any personal information such as bank account or credit card information over the phone until you have verified that you actually owe the debt. If the caller threatens you, file a complete with the FTC because abusive, unfair or deceptive debt collection practices are against the law.

In short, use good common sense.  Just writing a check without confirming that you actually owe the debt could cost you big time.

About Attorney Mark Powers
Attorney Mark Powers is a partner at the criminal defense law firm of Huppertz & Powers, S.C. in Waukesha. Previously, Powers served as an Assistant District Attorney with the Waukesha County District Attorney's office and is currently serving as a municipal judge in North Prairie. He focuses in the area of criminal defense, and has handled many cases involving operating a motor vehicle while intoxicated, domestic disputes, and drug offenses.

Powers attended Valparaiso University School of Law, where he received his Juris Doctorate. Prior to law school, Mark attended the University of Wisconsin, Lacrosse where he received his bachelor of science in Political Science.

For more information, please call 262.549.5979 or visit www.waukeshacriminalattorneys.com.