Most of us have probably gotten a call from a debt collector at some point. In some cases, they’re valid, but in many cases, those calls are fraudulent. They may try to get you to pay debt that isn’t your responsibility. Debt collectors generate more fraud reports than any other industry, according to the FTC.
Getting out of debt is difficult, and it’s even more challenging if you’re duped into paying debt you don’t owe. So, how do you spot these scams? Here are a few signs that the debt collectors on the other end of the phone are not what they seem.
They call at weird times
If a debt collector calls you very early (before 8 a.m.) or very late (after 9 p.m.), there’s a good chance they are not legitimate. At a minimum, they are violating the Fair Debt Collection Practices Act, which requires debtors to call between 8 a.m. and 9 p.m. in your local time zone. Scammers may try to call when you’re not fully paying attention, so you’ll pay without questioning them.
They pressure you to pay with a prepaid card or cash app
Scammers often ask you to pay with non-traditional payment methods because they are harder to track and harder to reverse. If the debt collector is pushing you to pay now, be wary. If they ask you to pay via Cash App, Zelle, Venmo, or any type of gift card, hang up. They are most likely scammers.
They threaten to tell authorities and have you arrested
Scammers use fear to convince people to look past red flags. In nearly all cases, you cannot be arrested for failing to pay consumer or business debts, like a credit card, mortgage, or medical bill. In the rare instances when you can be jailed for debt (generally for unpaid taxes or child support), you’ll only be jailed after a court hearing.
You don’t recognize the debt
Any debt collector is required by law to tell you how much you owe and to whom you owe that money. Even if it was a purchased debt, they have to tell you who the creditor was.
If you don’t recognize the debt, ask for the original purchase agreement or another validation of the debt. The debt collector has 30 days to provide this information or must pause collection efforts.
They ask you for information they should already have
A real debt collector should already know your name, address, birthday, and other personal details. But if the caller is a scammer, they may ask for that information, sometimes claiming they need to “verify” it.
If the person calling asks for information they should have access to, they’re likely a scammer. If you’re not sure, hang up and search online for a phone number for the company and call back.
What to do if you think a call is a debt collection scam
First, never give out sensitive personal or financial information, including your Social Security number, bank routing number, or account number. Next, ask them to verify the debt. For example, if you owe money on a credit card, they are required to provide the original agreement to prove the debt is yours.
If you’re unsure if the call is legitimate, hang up and search for the company’s phone number online. Call them directly and ask if they have a record of debt.
Finally, file a report with the Consumer Financial Protection Bureau. Companies are required to respond to CFPB complaints within 60 days.
Being on the hook for legitimate debt is stressful enough, so stay vigilant and don’t get duped by scammers. Once that money leaves your checking account, there’s a very real chance you won’t ever see it again.
