Scammers often use unidentifiable or frequently changing contact details to avoid detection. Research the contact information provided to check if it’s linked to a reputable agency. If you cannot confirm the authenticity of the supposed debt collector’s contact information, don’t respond further ...
Some scammers threaten to go after your family members — or claim they will add your debt to your background check so that any new employer will see it. These are huge red flags, as debt collectors cannot disclose your debt to people other than your spouse, parents (if you’re a mi...
If you win in federal court, the debt collector will pay your attorney fees and possibly damages.How to spot debt collection scamsAccording to the CFPB, there are a few red flags that indicate a debt collection call could be a scam:
Watch out for calls, letters, or emails from debt collectors.If scammers have taken out loans or credit cards in your name, the debts could end up going to a collection agency. By law, debt collectors have to give you information about the amount owing — such as who the original lender...
In this type of scam, the lender may promise the borrower a low-interest rate loan to consolidate their debts, but then switch them to a debt settlement program that requires them to make high monthly payments into an escrow account. The lender may also charge significant upfront fees an...
Ignoring notices can lead to legal action, wage garnishment, and a negative impact on your credit score. It’s better to address the issue directly. How does the statute of limitations affect debt collection? The statute of limitations limits the time a debt collector can sue you for a debt...
Debt can be stressful under regular circumstances, but it becomes especially difficult to deal with if you’ve inadvertently become involved with a scam company or predatory lenders. These guides will help you steer clear of such traps and figure out what to do if you’ve been a victim of ...
Debt collection scams can induce anxiety, as scammers claim to be collecting on overdue debts. They may threaten legal action if you don’t immediately provide payment or your bank account information. In reality, no legitimate debt collection agency would ever demand you make hasty payments onlin...
inaccurate in any way (wrong amount, you don’t owe it etc.) the debt collector should let the credit reporting agencies to which it has reported the debt that it is disputed. If it does not, the collector may be breaking the law. Learn how tocheck collection accounts on credit reports...
Unlike most other debt consolidation methods, you won't have to undergo a credit check, so you don't have to worry if you have bad credit. Even so, you should heed the following cautions before taking a 401(k) loan: You will pay fees.For 401(k) loans, you'll often have to pay ...