Is Fraud Rampant In Debt Collection?
After the recent economic crisis, many individuals have found themselves exposed to debts
. Typically, when a person falls into debt and cannot make repayments, a debt collector is called in to recover assets or money so that the lender can get back some of his investment.
Although an unpleasant practice, debt collectors still do a valuable job for some, regardless what others might think of them. With the numbers of those who are in debt reaching record high levels, many legitimate debt collectors have arisen to benefit from what has become a necessary trade.
Regrettably though, several dishonest individuals have also entered into the business and seek to extract money from people, making use of immoral or even criminal means. Many individuals are complaining of harassing phone calls and visits from individuals who claim to be debt collectors claiming that if outstanding debts aren't paid straight away, then they shall begin legal proceedings.
It is often the case that the victims do not even have any debt or bad credit rating. The bogus debt collectors are typically well aware of this but still pursue the victim with campaigns of intimidation in order to scare the victim into paying. The scammers often use tactics such as spreading smear campaigns by talking to the neighbors and threatening to visit the place of work of the victim. Again, several people decide to pay the requested amount so as to stop the harassment even though they are well aware that they have no debt.
People who do receive calls from a so called debt collector who starts to use threatening tactics are encouraged to cut the phone call and report a complaint with the Federal Trade Commission (FTC). Even when a person has debt issues, the Fair Debt Collection Practices Act still requires that the collector behaves in a professional and moral manner. If any debt collector is found to use aggressive or intimidating tactics to extract cash from a debtor, then they are liable to prosecution. An legitimate debt collector would be well aware of the law and will not revert to making use of such tactics.
Obviously, the law doesnt spare you from any authentic debt and you are required to pay. However, if you are contacted by a seemingly genuine debt collector then it's advisable that you check their company properly to be certain that they're the real deal. Since fraudulent debt collectors would often do their best to appear authentic, they are likely to have several tools at their disposal to seem more convincing. If you do settle a debt through a bogus debt collector then you will find that your debt is not settled at all and you will still be expected to pay the outstanding amount.
With so many people finding themselves behind on payments, it has left them wide open to abuse from fraudsters meaning that it's important to be additional careful when undertaking any economic transaction, even if you do have outstanding debts to be paid.
by: Cory Boatright
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