Signs 'debt collector' is scamming you

[mfcorey1]

MIAMI -

A recent Urban Institute study found 35 percent of Americans have debts and unpaid bills that have been reported to collection agencies. Experts say con artists are seizing on that startling statistic, claiming to be a debt collection agency, to con people out of hundreds, or even thousands of dollars.

Local 10 News Call Christina viewer Marisa Tarride said she is familiar with debt collection agencies.

"There’s a lot of people that have gotten into debt, I myself being one of them," she said. "But I know what collection agency I’m with."


However, Tarride told Local 10 that she was scared and intimidated after receiving a threatening call from supposed debt collection company, Alvarez Sinclair and Associates. That’s when she reached out to Call Christina, telling Local 10 investigator Christina Vazquez, "I just decided to call to you to see if you could help me, because I was actually scared."

"They first called me saying, 'We’re going to sue you, we’re going to garnish your wages," Tarride said. "They made it sound so realistic that it sounded like an actual company was coming after me."

The agency said Tarride neglected payments on a credit card and she would be sued for more than $2,500.

http://www.local10.com/news/signs-debt-collector-is-scamming-you/30931838

[KT2000]

1. A young man on Booknotes

wrote a book about this. There is a conference in Las Vegas every year where bundles of debt are sold - some are out and out frauds and some have fraudulent debts hidden inside. They are just computer printouts. This was some of his advice:

1. Ask for the name and address of the company.
2. Ask how old the debt is because each state has a statute of limitations on debts.
3. Ask if they are licensed to do business in your state, city or county. *actually this one came from a local lawyer.
4. If you get a summons to go to court over a non-existent bill - go to court. If you don't go, the judge enters a judgment against you and rules for the collector and you are then legally required to pay the fraudulent company.

Bill collectors do not make very much money - a percentage of the debt repayment. They will go to extremes to get money out of people.

[arcane1]

2. Fascinating! What is the title of the book?

[KT2000]

3. I will work on finding it.

[KT2000]

4. Here is the book:

Bad Paper: Chasing Debt from Wall Street to the Underworld, by Jake Halpern

C-Span interview: http://www.c-span.org/video/?321450-1/words-jake-halpern

[arcane1]

5. Cool, thanks! That sounds like a great read :)

[Quantess]

6. K & R