ACTION LINE: Know your rights when debt collectors call
| Saturday, Sep 17 2011 12:00 PM
Last Updated Saturday, Sep 17 2011 12:00 PM
Editor's note: Action Line is a weekly column from the Better Business Bureau answering consumers' questions and concerns about money and business issues.
Dear Action Line:
I have been receiving numerous calls threatening me with arrest if I don't pay a debt I don't even have. The callers are really aggressive and say that I have defaulted on a payday advance loan except that isn't true. About a year ago, I did take out a payday loan but I paid it back in full when it was due two weeks later.
At first, the loan company called me encouraging me to come back and take out another loan. Those calls eventually stopped but then these collection calls started. I called the advance loan company I used and they said they didn't know what I was talking about. The callers say they are with a state collection agency and have the authority to send me to jail. What can I do?
Dear Reader:
Debt collection calls, whether fake or legitimate, can be scary.
The Better Business Bureau has received several reports of fraudulent and aggressive collection calls targeting Central Valley consumers. In some cases, like yours, consumers have been threatened with arrest if they don't pay off the alleged debts immediately.
The fraudulent debt collectors, who have used names that sound like they are with the California government, seem to have sensitive personal information of the people they're calling. In one case, they had the last four digits of the consumer's bank account and Social Security number. It's unclear how this information was obtained.
As difficult as it might be when faced with a harassing caller, don't be intimidated by debt collectors or people claiming to be debt collectors. Keep in mind you have rights under the Fair Debt Collection Practices Act. Under that act, debt collectors may not harass, oppress, or abuse debtors or any third parties they contact, nor can they state that anyone will be arrested if they don't pay their debt.
Consumers who receive aggressive calls are advised to remain calm. Don't be bullied or pressured into sending the company a payment. Ask for the company's full name and address and request that they send you something in writing. Do not give them your address if they ask for it. If they are legitimate, they will already have your address.
In addition, consumers should keep the following in mind: Within five days after you are first contacted by a debt collector, the collector must send you a written notice telling you the amount of money you owe, the name of the creditor to whom you owe the money and what action to take if you believe you do not owe the money.
If you send a letter to the collection agency disputing that you owe the money within 30 days of receiving a collection notice, the debt collector cannot make further collection efforts until you receive proof of the debt. If you cannot obtain an address by which to contact the collection agency in writing, you may be the target of a scam.
Always check the company's Business Review with the Better Business Bureau at www.bbb.org and also check to make sure the company has the proper state licensing.
You can also file a complaint with the BBB, the FTC at www.ftc.gov or with the California Attorney General's Office at www.ag.ca.gov.
For more information on collection agencies and your rights under the Fair Debt Collection Practices Act, go to: www.bbb.org/us/article/4732.
-- Vickie Sanders is assistant director of business services for the Better Business Bureau serving Central California. Send your consumer concerns, questions and problems to Action Line at the Better Business Bureau, 1601 H St., Suite 101, Bakersfield, CA 93301 or vickie@bbbcencal.org.
