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5 Warning Signs that a Debt Collection Agency Call is a Scam

Jul 28, 2021

Even when people are aware they owe debt, being contacted by a debt collection agency is not the first thought when an unknown number shows. The phone rings, and you wonder: is this a spoof call or a robocall? Is this someone I need to speak to or a scam? Due to changing technology, those are all valid questions. As we pointed out recently, Americans aren’t answering the phone as much and for good reason: scammers are out there.

Debt collections are a critical part of keeping the economy strong. Debt collection agencies make sure large and small businesses can operate effectively. Most people with a past due bill want to pay, but for many others, this is not the case. This is why a company may hire outside help to chase down late payments.

Unfortunately, the methods used by some debt collectors and debt buyers haven’t always been ethical, which has led to a lot of mistrust of the industry. Scammers searching for a quick buck aren’t helping things, so it’s critical that consumers know the difference between a legitimate call about a bill you missed versus someone trying to get your money.

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Signs a Debt Collector Call is a Scam

Legitimate debt collectors are bound by laws of the Fair Debt Collection Practices Act (FDCPA) and Consumer Financial Protection Bureau (CFPB).  Most collection agencies adhere to other ethical practices as well.

For example, any legitimate debt collection agency will send debt validation letters on company letterhead. A credible and licensed debt collector will not do the things on the list below. If a caller does any of the following, he or she might be a scammer, and consumers should investigate further before handing over money, bank account numbers, or any personal information.

  • Sign 1: The caller wants to collect debt on a loan you don’t remember. We all forget things, and in some cases, we have worked with people who forgot about a bill. Although, if you don’t remember the loan or bill, it’s OK to ask for more information and dig deeper.
  • Sign 2: The caller refuses to give a mailing address or phone number, the amount owed, or the name of the original creditor. Every honest business or collector asking for payment will give out this information.
  • Sign 3: He or she puts pressure on you, makes threats or tries to scare you into paying. No legitimate business should threaten you with jail time, bodily harm, or anything else. If a debt collector contacts you to threaten or tell others about your debts, that is another sign it’s a scam.
  • Sign 4: He or she calls at odd times of the day. Debt collectors are bound by the law to call between 8 a.m. and 9 p.m. unless you agree otherwise.
  • Sign 5: The caller claims to be from the IRS. The IRS will never call you for money. Do not pay anyone who says he or she represents the government tax agency.

Debt Collection Agency

You can learn more about the debt buying industry on this page by the Federal Trade Commission. It outlines some of the rules any licensed debt collection agency follows, such as Capital Recovery Corporation (CRC).

Learn more about debt collection and our services by checking out the CRC blog with free informational articles. If you are a business, feel free to share this information with your customers, or contact us if you have questions.

Get debt relief now before it is too late. With over 40 years in the business, recover cash flow, rebuild your accounts receivable, and more with CRC.