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Savannah Morning News, Ga., Arlinda Smith Broady column: Dollars & Sense: Fraudulent phone call or legitimate debt collection?Aug 12, 2009 (Savannah Morning News - McClatchy-Tribune Information Services via COMTEX) -- Call it a byproduct of the recent economic downturn, but fraud is running rampant. The Better Business Bureau issued a national alert earlier this month warning consumers about phony debt collectors. The scammers claim the victim has defaulted on a payday loan and will be arrested if they don't pay immediately. Claiming to be lawyers, the scammers say they are with the "Financial Accountability Association" or the "Federal Legislation of Unsecured Loans" and have a disconcerting amount of personal information. Quite often these fraudsters threaten that, if the victim doesn't pay as much as $1,000 immediately via wire or by providing bank account or credit card numbers, he or she will be arrested and extradited to California within the hour to stand trial. In a number of cases, the scammers have the victim's Social Security number, old bank account numbers or driver's license numbers as well as home addresses, employer information and even the names of personal friends and professional references. If you receive a phone call from someone posing as a debt collector, the first thing to do is find out if it is a legitimate debt, said Ross Howard, president and CEO of the Better Business Bureau's Southeast Atlantic region. "It may very well be a collection agency trying to settle a debt," he said. And they do have a right to call you for that purpose. But there are laws to protect consumers' rights. Called the Fair Debt Collection Practices Act, these guidelines allow debt collectors to do their job within parameters that don't harass customers. Anyone who's had the calls may still consider it harassment, but collectors can call your house between 8 a.m. and 9 p.m. and are allowed to call on weekends. You can ask them not to call your place of employment, but that generally has to be in writing and it doesn't eliminate the debt. "The best way to end the calls is to deal with the situation," Howard said. His organization takes complaints on all types of businesses and is putting together specific standards for debt collection agencies. "Many times our standard business rating system doesn't fit with collection agencies, so we're altering it," Howard said. "The nature of what they do generates complaints, and often consumers overlook the fact that they do owe money and this company is trying to do their job." If you're not sure you do owe money, check your credit report, said Howard. Go to annualcreditreport.com to receive free reports from each of the three major credit reporting agencies, Equifax, Experian and TransUnion. "In Georgia, you're allowed two free credit reports a year," Howard said. If you believe items in the report are in error, you can have the credit agency verify the claim. After 30 days, if the debt can't be substantiated, the agency will take it off your report. Often there are simple errors; other times identity thieves have set up fraudulent accounts. That's why it's important to check your credit report periodically. Arlinda Smith Broady can be reached at 912-652-0314 or [email protected]. ------ Protect yourself against scammers The Better Business Bureau offers this advice if you receive a suspicious telephone call about an outstanding debt. -- Ask the debt collector to provide official documentation to substantiate 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. -- File a complaint with BBB online (bbb.org) if you believe a debt collector is trying to scam you. On the web For information, go to www.bbb.org or contact the Southeast Atlantic regional office at 912-354-7521 or via e-mail: [email protected]. To see more of The Savannah Morning News or to subscribe to the newspaper, go to http://www.savannahnow.com. Copyright (c) 2009, Savannah Morning News, Ga. Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |