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If you’ve been dealing with debt for a while, you’ve probably received your fair share of persistent calls from debt collectors. However, not all of these calls are legitimate. Be cautious, as you may fall victim to a debt collection scam. Always ask for a "validation notice" when speaking with a collector.
Before settling any type of debt, you should take into account several important factors. But before you engage in negotiations with a debt collector, ensure they’re not a scam artist. Some fraudsters gather your information online and then pose as collection agents. We've listed a few questions to ask, but Consumer Reports also suggests requesting a "validation notice" to help confirm the legitimacy of the call.
Even if the caller provides convincing answers, request a "validation notice" to verify the debt. This notice, which must be sent within five days of the first contact, should detail the amount of the debt, the name of the creditor, and your rights under the federal Fair Debt Collection Practices. The Consumer Financial Protection Bureau offers
sample request letters
. Don’t discuss any debt until you’ve received the notice.
If you're fairly certain it’s a scammer, consider reaching out to the Federal Trade Commission. We’ve included more information on requesting debt validation here. For additional tips on avoiding scams, read the full post at the link below.
Image credit: Gotcredit.
