Oak Park Real Estate & Estate Planning Blog

Consumers in Oak Park and throughout the Chicago area often receive calls from debt collectors informing them that they owe money to creditors. In some of these situations, the debt collector engages in practices that violate the Fair Debt Collection Practices Act (FDCPA), leading consumers to file complaints with the Consumer Financial Protection Bureau (CFPB). Even when debt collectors do not engage in clear violations of the FDCPA, they still might attempt to collect on debts that a consumer does not actually owe. We often describe these as “phantom debts.” When you continuously receive calls from debt collectors about phantom debt, what can you do to put an end to this contact? According to an article in USA Today , there are steps consumers can take to “vanquish a phantom debt for good.” Why do Debt Collectors Attempt to Collect Phantom Debt? As the article suggests, there are a few general reasons that consumers get calls concerning phantom debt. In some cas...

Have you been contacted by a person claiming to be a debt collector who is seeking to recover a debt you allegedly owe? If so, you are not alone. According to a recent report from CBS Chicago , such parties claiming to be debt collectors are on the rise, and they are scamming Chicago-area residents. These alleged debt collectors are part of schemes known as “phantom debt collection scams,” since they involve the attempt to collect on a debt that the consumer does not actually owe. How can you avoid becoming a victim in a debt-collection scam ? What should you do if you have been targeted by a fake debt collector? How Do Phantom Debt Collection Scams Work? Now, you might be thinking to yourself: I would never agree to make payment on a debt that I did not owe. But the scam is not always that simple. Parties at the center of debt-collection scams often target consumers who do actually owe debts (to someone or to some entity), and they prey on the fact that these c...