Beware! Phony Debt Collection ScamA national debt collection scam has phony debt collectors harassing consumers, and threatening them over debts they don’t even owe, warns the Better Business Bureau. The BBB issued a national alert in early August 2009, after receiving numerous complaints from consumers across the country about phony debt collectors who tell consumers that they have defaulted on a payday loan and face immediate arrest if they don’t pay the debt. The collectors claim to be attorneys with the “Financial Accountability Association” or the “Federal Legislation of Unsecured Loans” and have an unusual amount of personal information about their potential victims, leading the BBB to believe a data breach may be the source of their information. The fake debt collectors tell their targeted victims that they owe money for a payday loan, and tell them that if they don’t pay immediately they will be arrested and extradited to California within the hour to stand trial. The scammers are often equipped with detailed information about their victims, including their Social Security number, old bank account numbers, or driver’s license numbers, and as well as home addresses, employer information and even the names of personal friends and professional references. This information makes the scam far more frightening than the usual phishing scam. According to complaints online, phone numbers that the scammers are calling from include: 949-468-5107, 415-200-0274, 415-200-0274, 213-784-5745, 408-715-1614 and many others. The BBB offers the following advice to consumers if they receive a suspicious telephone call about an outstanding debt: • Ask the debt collector to provide official documentation which substantiates the debt. • Do not provide or confirm any bank account, credit card or other personal information over the phone until you have confirmed the legitimacy of the call. • File a complaint with the Federal Trade Commission online if the caller is abusive, uses threats or otherwise violates federal telemarketing laws. Our advice (the authors of Debt Collection Answers) is that you also
download our free debt collection worksheetand keep good notes of any conversation with one of these so-called debt collectors, consider placing a fraud alert or credit freeze on your credit files, and file a complaint with your state attorney general’s office as well as the FTC.
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