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Now you can listen to our blog, “4 Ways to Know If Your Debt Collector is Fraud”, while on the go.
Debt might be a scary thing but have you ever been scammed by a debt collector? It’s a nightmare. Think it this way: You get a call from a debt collector who informs you that you owe them money. You take their call very seriously and try to give them money as soon as possible. However, lately, you find that the call was fake and you have been scammed by a fraud debt collecter. Isn’t it a nightmare?
The irony is, this trick always works out. This type of debt collection scam is serious because most do not want to be in a debt, and that to a collection agency. The scammers take advantage of this and impersonate themselves as legitimate debt collectors.
They then use threats, abuse, insults and extreme claims to bully you into giving them the money they want. The worst part of this is that they threaten you to contact your family members, boss or coworkers and tell them about this. In such a situation, you are left with no option but to pay them the money they are asking for.
This scam is so prevalent in Canada and most of the time it works too. The reason these still works is that people pay off the debt they are told they have, especially when they had debt in the past and it negatively affected them.
So, what could be done best to avoid this scam? The answer is ‘know your debt collecter’. If you ever receive a call from someone who claims to be a debt collector, do yourself a great favour and investigate whether this call is true or fake.
Don’t know how to investigate the call properly? Don’t worry, we are here to tell you every bit of it. Below you will find 4 ways to know if your debt collector is a fraud.
Here is how to authenticate whether the call is from a genuine debt collector or a fraud.
1. They Have No Proof
If you receive a call of debt, always ask for written proof that they are in reality a legitimate debt collector. If they refuse or try to avoid this topic then know that they are trying to scam you. Do not believe in any single word they say. They might say that the proof is already sent to your email this and that, but know that they are lying.
One thing in which case you should believe they are genuine is when you have a confirmation letter in your hands. If they hand you a confirmation letter, only then think of paying them the money. In any other case, do not believe them or you will be doing damage to none but yourself.
2. They Threat You Personally
According to law, a debt collector can’t threaten you by any means. If they do so, they are not a debt collector and a scam. The fraud collector uses pressure and threats as their main tool and tries to intimidate you for the money. So, if a debt collector is treating you with serious claims, know that they are a scam.
If a debt collector is real, he will serve you with papers and not threaten you over the telephone. After being served with paper, if a debt collector tries to intimidate you and the situation gets out of hand, then ask which agency they work for and call back to speak with another collector. If they refuse to tell you their agency and do not allow you to talk to another person, then take this another clear sign of fraud collector.
3. They Use Prepaid Card or Wire Transfer
A real debt collector will never ask you to pay them via prepaid card or wire. If they ask this way, know that you are being scammed. Fraud debt collectors want to steal your money and they want to do it quickly before you know you are being scammed.
To avoid being scammed, never pay a debt collector the same day they call you. A real debt collector will give you at least a few days to get your affairs in order.
4. They Have Information About Your Payday Loan
If you have a payday loan then this is for you. If a debt collector calls you and has information about your and your payday loans, be suspicious as it can be a scam. The reason is that scammers target payday loans companies and buy or steal client information from them.
So, if your debt collector sounds legitimate only on the basis that they have your payday loan information, be cautious. Make sure you are informed and know your rights when dealing with debt collectors. That’s the only way you will be able to defend yourself against the scam.
What to Do If Know You Are Being Scammed
If you receive a call from a debt collector and you think that they are scamming you, just do not freak out. Listen to them calmly and ask them their name and the company they work for. Note it down and ask them to hang on for a while. Next, do your research by whatever means available.
If the scammer has given you a genuine name, you will find it online. Call the agency and ask them whether the person works for them or not. Verify whether that person called you and whether your name is on the debt list. Ask questions of verification and you will quickly know whether the call you received was true or a scam.
One takeaway from this article you should take with you is that do not hand over your money right away. Instead, do your research online as well as offline and know whether the person and agency exist or not. If yes, whether they called you or not. If you do this, you will know if your debt collector is fraud or not.
The Bottom Line
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