Calling people and pushing them to pay
debts they don’t really owe?
Posing as law enforcement and fake
government agencies like the “Federal Crime Unit of the Department of Justice”?
Threatening to sue or arrest people —
or tell their family and employers about a debt?
Reciting people’s Social Security and
bank account numbers to seem legit?
Yup, this fake debt collection scheme
did it all, illegally collecting more than $5.2 million in fake payday loan
debts. Today the FTC announced that under a settlement with the agency,
defendant Kirit Patel and his company Broadway Global Master, which processed
payments for the scheme, will be banned from the debt collection business, and
money recovered will be used for refunds. Patel also has pleaded guilty to the real
Department of Justice on charges of criminal mail and wire fraud.
So how can you tell if you’re being
targeted by a fake debt collector? A caller may be a fake debt collector if:
- you don’t recognize the debt
- you can’t get a mailing address or phone number for the collector
- you’re asked for personal financial or sensitive information
- you’re threatened with arrest or told you’ll be reported to a law enforcement agency
You have rights when it comes to debt
collection. Tell the caller that you won’t discuss any debt until you get a
written "validation notice," which has to include the amount of the
debt, the name of the creditor you owe, and your rights under the federal Fair
Debt Collection Practices Act.
If the debt is legitimate — but you
think the collector may not be — contact your creditor about the calls. Share
the information you have about the suspicious calls and find out who, if
anyone, the creditor has authorized to collect the debt. If it doesn’t check
out, report the call to the FTC and your state
Attorney General's office.
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