If you thought debt collection scams only pray on the gullible, you’re quite wrong. People with a lot of experience handling their finances and even professionals are quite susceptible to these debt collection scams because of how well-planned some can be.
As a consultant, you must learn to identify and avoid debt collection scams because they will prey on you and your clients. Keep the following signs and indicators of a typical debt collection scam, and safeguard your clients:
They are unable to provide information about the original creditor
Debt collectors represent other creditors such as banks, credit card companies, personal lenders, etc. When someone is unable to share information about the original creditor or lender, don’t trust them.
Your best bet is to ask them for the exact details about the creditor they represent and then request more details regarding the transaction, including receipts that can be validated.
They will also never share their information, including company ID, references, or any way of verifying whether they’re affiliated with the agency they claim to represent.
They demand payments incessantly and urgently and use aggression
If you find that a debt collector is very insistent and incessantly demands payment, asks for upfront cash or deposits, and seems to be very persistent about the process, you should be wary. While deadlines are important to honor, urgency and aggression are never permissible and are typically used when someone wants to take that payment and make a run for it before they’re caught.
Another very common indicator of a debt collection scam is how they ask you to pay. They’ll likely be demanding payments via phone or social media or asking for cash drop-offs, etc., that leave no legitimate paper trail. It’s not worth taking a chance and should be reported as soon as possible.
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