How Consumers can Protect Themselves from Debt Collectors

Whether you are a consumer in Oak Park or elsewhere in Chicagoland, it is important to know how to protect yourself from debt collectors, whether they are legitimate debt collectors who are engaging in practices that violate the Fair Debt Collection Practices Act (FDCPA) or scam debt collectors. According to a recent article in Forbes, more and more consumers are facing harassment from debt collection companies—both real and fraudulent—in efforts by those collectors to obtain money. Many of those consumers simply do not owe the debts for which they are being contacted, while other consumers do owe debts but are being treated unfairly by the collection companies.
The Forbes article addresses the prevalence of debt collection fraud and harassment, and discusses some of the ways that consumers can protect themselves.
Protecting Yourself from Debt Collection Scams
One of the reasons that debt collection scams work is that many of the consumers being targeted do actually owe debts. According to the Federal Trade Commission (FTC), there were at least 2.7 million consumer complaints last year, and the most common complaint concerned debt collection scams. In addition to targeting consumers who actually owe debts to creditors and thus may be more susceptible to scammers, those debt collection scam workers have also “become smarter in recent months,” according to the article. More debt collection scams are tricking consumers into paying money.
How have debt collection scams gotten smarter? In short, they are pretending to be real debt collection companies and individuals associated with those companies. The FTC explained that, “when these real businesses started receiving calls from people trying to reach the debt collectors or complaining about abusive practices, they realized that their businesses’ name was being used in a scam.” Many of these debt collect scam callers actually got consumers to pay fake debts, and if consumers refused, “they threatened them with prison time or claimed police would come to their house to arrest them.”
What can consumers do to protect themselves against debt collection scams? Take notes and write down the name of the alleged debt collection company. Then hang up your phone, locate contact information for the debt collection company (with the name you were given over the phone), and call that business to determine whether it actually is attempting to collect a debt from you. If not, report the initial phone call to the FTC or the Consumer Financial Protection Bureau (CFPB).
Harassment and Legitimate Debt Collectors
In addition to debt collection scams, consumers continue to face harassment from legitimate debt collectors. Just because a debt collector is legitimate, as the article points out, does not mean that the debt collector can harass you. Harassment violates the FDCPA.
You can report the debt collection company to the FTC or and the CFPB, and you also may be able to file a claim. You should also consider the options available to you for getting out of debt. If you are being contacted constantly by debt collection companies for legitimate debts that you cannot pay, you should speak with an Oak Park bankruptcy lawyer about filing for Chapter 7 or Chapter 13 bankruptcy.
Contact a Consumer Protection Lawyer in Oak Park
Are you being harassed by debt collectors? An experienced Oak Park consumer protection lawyer may be able to help. Contact the Emerson Law Firm for more information.
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