How to Prevent Debt Collection Scams from Taking Your Money

When you’re behind on your bills, debt collection may be one of the most annoying problems you face. Collectors call all the time, fill your mailbox, and make you anxious. And sadly, scammers know how to take advantage of that fear and vulnerability. Here’s how to prevent debt collection scams from stealing your money.

The Debt Collection Scam Problem

According to the Better Business Bureau, debt collection scams are one of the #1 scams in America, and have been for years. Here’s how the most popular kind works:

1. A fake debt collector calls you.

2. They say you you’re overdue on a bill and need to pay it immediately.

3. Sometimes they’ll offer to set up a payment plan for you or give you a deal.

4. They ask for your personal info (they might give any reason for why they need it). This could include your social security number, bank account, credit card info, or something else.

5. They use the information you’ve given them to steal your cash, identity, or both.

Remember, these are not real creditors. You don’t owe them money, and you definitely don’t owe them your personal information. Fortunately, there are ways to tell if the creditor is legit.

How to Tell if a Debt Collector Is Scamming You

You don’t have to give a creditor your information when they call. But they DO have to give you theirs.

Federal laws protects you from scams like this by requiring creditors to give you certain information. If you think it might be a scam, you can ask for the following:

  • Their name
  • What amount of money you owe, and for what debt
  • Mailed proof of the debt

If you question the debt, a creditor is required by law to send written confirmation of how much you owe. Usually just asking for it will panic a scammer and they’ll hang up.

Bankruptcy Lawyer for Debt Collection

As a Memphis bankruptcy attorney, I absolutely hate seeing people taken advantage of, especially people who are already vulnerable because they’re in debt.

That’s why I offer a free report all about how to stop creditor harassment. It takes you through all the steps to make sure you and your family are protected.

If you’re in debt and creditors keep hounding you, bankruptcy can help. Bankruptcy puts a stop to any creditor phone calls. You get protection and peace of mind.

Contact me today at 901-327-2100 to get started. The conversation is free.