Debt Collection Scam Warning

: Reese Baker & Associates

  Filed under: News

scamAs technology advances so do the skills of con artists. In a time when more and more people are turning for help with their debts, criminals are using the opportunity to prey on unsuspecting victims. A report was released this week detailing a new form of debt collection scam, urging consumers to get educated and be on guard.

Inform Yourself

This new form of debt collection scam is very convincing. The con artists use the information stolen from online payday loan applications to persuade consumers they are a legitimate collector. With this information in hand these phony debt collectors have information like your name, address, bank information and even some or all of your social security number. Having this sort of information makes them appear more legitimate. Further, they even go so far as to say they represent a law firm or government agency.

Protect Yourself

The bottom line is that you can never be too careful when speaking with third party debt collectors. A good rule of thumb is that if any part of your communication with a third party seems odd, hang up the phone. Never give out personal or banking information to a third party without written verification of the debt and confirmation from your direct lender this third party is working on their behalf. When at all possible, negotiate and pay your lender directly. Report any suspicious or unusual collection activity to the Federal Trade Commission right away. If you are in the process of seeking debt relief and are contacted by a collector, inform your Houston bankruptcy lawyer right away. Your lawyer can ensure you are not contacted again.