Debt Collection Scam- An Oldie But A Goodie!

Even though it's an oldie, apparently it's still a goodie. Enjoying a recent boost in popularity, the fake debt collector scam still fools unknowing victims.

First, you will get a phone call from a number that will not be recognizable. Sometimes, it will seem legitimate, but ultimately, not familiar. When you get the call, the person calling will let you know that they are a debt collector with so and so debt collection agency, and that this is an attempt to collect debt. At times, the phonies have been known to claim that they are working in addition to a local lawyer to get your delinquent account settled. The conman will tell you that you have accumulated a large amount of debt from a previous account. Typically, the crooks will tell you that you potentially owe them thousands, but if you are willing to settle, they will "settle: for, oh say, five hundred dollars. And could you wire the money via Western Union?

An interesting hint of ingenuity on the part of the scam artists is that many times these calls will arrive on a late Friday evening, or afternoon. When they call at these times, any government offices that you might report this to will be closed.

On numerous occasions the phony debt collectors will be calling from outside of the United States. An example of this was a recent scam involving a call center in India. Using services in order to mask their number, call centers located outside of the country may even choose a number from an area code nearby to where you live.

If you have gotten a call from a bill collector that you feel might be a scheme, it is important to be vigilant. Ask your debt collector for a written statement of your debt. If they won't provide you with written proof, don't fork out any money to this suspicious agency. If you feel as though you may have been victimized by a phony bill collector scam, it is necessary to file a report with the Attorney General's office in your state. It is important to collect as much information as you can to provide more details in your complaint.

Debt Collectors Consider Text Messaging

There is no denying that text messaging is becoming a major medium for exchanging data. Fast, painless, no speaking on the phone. No wonder that according to the latest statistics that are available there were almost 750 billion text messages sent in the U.S. in 2009, nearly double the number from one year before. Actually, technology and research firm executive Jacob D. Almeida recently predicted that money transfers will be the number one mobile application by 2012.

Debt collectors have stayed out of this field for now; The Fair Debt Collection Practices Act was a landmark legislation that went into effect in the late 1970s and has strictly outlined how debt collectors can call and when. Seeing as this act is even older than a stereotypical "Saved by the Bell Cell phone" from the 90s, it might be due time to adjust the law. But analysts are saying that any change in this area would have to come from consumers seeking change, not collectors.

Under the FDCPA, communications with consumers need a notice that the message is in fact from a debt collector, which leads to issues with the 160 character maximum length of money transferring texts. Another problem is figuring out who will pay the message. There is no current way for a collection firm to know if a consumer has a plan that includes unlimited text messages; the kicker being that if a contact is paid for by the debtor, it is illegal.

Another potential problem for debt collection agencies is determining the ownership of the device itself. The debtor might be utilizing a company owned wireless device for example. Said company might be monitoring the usage of the device, leading to third party disclosure issues if there were communications based in text regarding a debt.

Sadly, Congress has to vote on health care, the budget, cap and trade and many other issues first before it can get down and tackle this text message issue. So time will tell.

Irish Gang Branches Out Into Debt Collection

And you thought your collection agency was bad. It has been revealed in recent news that an Irish gangland boss has found a new calling- debt collection. This criminal progidy has been associated with twelve deaths; a threat even more looming than a collections letter.

Most of the time, legit creditors who aren't gang members will hire out third party collection agencies to retrieve debts. Bill collectors work on commission, where they receive a percentage of the amount of money that they collect. Oftentimes collection agencies will purchase debt from the creditors so that they can collect the entire sum of money owed.

The Irish gang members seemed to have gotten inspiration from this practice, but the similarities end there. The boss of the disreputable Irish gang has created his own collection agency, purchasing debt and using his notoriety to bully his way into gathering the money owed. The unlucky debtors are drug users who are unable to repay dealers.

Reputable collection agencies will usually start with a gentle "reminder letter." If the debtor is antagonistic or evasive, the letters will become more serious. Telephone calls will be used as well as a reminder to those who owe money to pay up. If these ploys fail, the company has the right to report a debt to credit bureaus, or file a lawsuit.

On the other hand, the Irish gangland bill collection agency will utilize its reputation as a group of ruthless murderers and crooks to intimidate debtors into paying back drug money. Thankfully, the head of this operation has been arrested, and the Justice Minister of Ireland has promised to do everything in his power to guarantee that the accused will be brought to justice.

So next time you get a telephone call from a bill collection company, try to keep things in perspective. And if you are ever in Ireland, it is probably not a good idea to take out a loan with a heartless gang.