Debt Collection Scams: Protecting Yourself
The government is stepping up as debt collection scams rise. In recent news, Buffalo New York has been home to a number of unlawful debt collection practices, and authorities have arrested at least twelve people. Although the vast majority of collection agencies are legitimate and good for the economy, there has been a rising amount of deceptive and illegal practices.
In Buffalo, debt collectors have been caught calling up debtors and saying that they are law enforcement. They have threatened to send debtors to prison, or even take child custody away from them. And it doesn’t stop there.
A recent civil case imposed a $675,000 penalty ever imposed on a debt collection business, for illegal and deceptive practices. This includes harassing and lying to consumers, cashing in on post dated checks early, and disclosing their debt to third parties. These tactics came by deceptive claims from agents saying they were lawyers or other figures of authority.
In addition to refusing to reveal the address or phone number of the “company” these agents even went as far as to call individuals who did not owe any money at all and attempted to collect from them. Despite claims that it was individual workers acting fraudulently, the Federal Trade Commission went after the business owners and won a case that imposed the biggest penalty ever for debt collection agencies.
To skirt the issue of being a victim to fraudulent collection agencies, it is imperative that you know your rights. A collection company can never seize a debtor’s assets, bank accounts, or paychecks. They can not get a debtor fired from their occupation, and cannot make any kind of public disclosures concerning the debt, and they can definitely never threaten or engage in violent acts.
For more information, refer to the Fair Debt Collection Practices Act, which outlines the rules and regulations of debt collection.
Rapid Recovery Solution is a commercial debt collection company. You can get a unique content version of this article from the Uber Article Directory.
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