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  • Geebo 9:01 am on December 16, 2021 Permalink | Reply
    Tags: debt, , ,   

    New debt collection rules could lead to scams 

    New debt collection rules could lead to scams

    By Greg Collier

    If you’ve ever had to deal with a debt collector, whether rightly or wrongly, you know just how persistent they can be. Even some legitimate debt collection agencies have used some pretty underhanded tactics to try to collect on a debt that can border on harassment. Some agencies will try to pressure someone into making a payment right then and there over the phone, without telling the person where the debt came from. The collection agency might not have this information, since they may have bought the debt from someone else. They might also try to threaten you with arrest or wage garnishment. Both of these tactics are illegal, but that hasn’t stopped some collection agencies. Now, there is one less place where you can avoid debt collectors.

    Debt collectors are now allowed to approach you on social media. However, that comes with a few cautions. The communication from the debt collector has to be private. For example, they’re not allowed to post anything on your Facebook page that your friends and family could see. Debt collectors also have to properly identify themselves along with the amount of the debt, and where the debt is originally from. They’re also required to give you the option to opt-out of receiving any social media messages from them.

    However, with these new regulations, authorities are worried about scammers approaching people on social media while posing as debt collectors. According to the Better Business Bureau, if you think you’re talking to a scammer, end all communication immediately. Instead, you can go to the BBB website to make sure the agency is legitimate. You can also use the same tricks against scammers that you can use to protect your rights against debt collectors. Ask them for a debt verification letter that will detail where the debt supposedly came from. You should also check your state’s law to see when the statute of limitations on debt expires.

    However, we should warn, that if you choose to ignore messages from debt collectors this could negatively affect your credit whether the debt is correct or not.

     
  • Geebo 8:00 am on June 30, 2021 Permalink | Reply
    Tags: debt, ,   

    What do debt collectors and scammers have in common? 

    What do debt collectors and scammers have in common?

    By Greg Collier

    These days, debt collectors seem to be an unavoidable fact of life. Some people just aren’t financially able to pay some bills like medical expenses. Some others even go out of their way to avoid paying any debt in their name. Even people with perfect credit sometimes miss a relatively small payment or an unclaimed debt seems to slip through the cracks. Anyway you look at it, most of us will end up dealing with a debt collector at some time or another. While legitimate debt collectors aren’t scammers, they do employ some of the same tactics that scammers use.

    Just like scammers, debt collectors will try to pressure you into a making a payment right then and there. First, you have a right to know when and where the debt came from. The collection agency might not have this information, since they may have bought the debt from someone else. At this point, you should ask for a debt verification letter that will detail where the debt supposedly came from. You’ll also want to check with your state to see when the statute of limitations on debt is. If the collection agency is asking you to pay a debt that’s older than the statute of limitations, if you start paying on that debt it starts the statute of limitations over again.

    If a debt collector threatens to have you arrested or garnish your wages, they are breaking the law. Unfortunately, this does not stop some debt collectors from using this tactic. This is a trick used to go after people with debt that the collection agency doesn’t plan on actually taking legal action against.

    If you receive repeated calls from a debt collector, you should look into your state’s laws concerning debt collection harassment as well. Just because someone may owe a debt doesn’t mean they should be treated as a second class citizen.

     
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