Bill Collector Scams: Stay Safe and Informed

Bill collector scams can be a nightmare to deal with. According to the Federal Trade Commission, in 2020, consumers reported losing over $242 million to debt collection scams.

Scammers often target people who are already vulnerable, such as those who are struggling to pay bills. They may use tactics like fake debt collection letters or calls to convince you to pay up.

In reality, legitimate debt collectors will never ask you to pay with gift cards or wire transfers. They also won't threaten to sue you if you don't pay immediately.

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Debt collectors must register with the Oregon Department of Consumer and Business Services and comply with state and federal fair debt collection laws.

In Oregon, debt collectors must follow specific procedures when collecting a debt, including identifying themselves during a phone call and not misrepresenting who they are and who they work for.

Debt collectors are not allowed to contact borrowers at unreasonable hours, such as calling them at work if they've asked not to be contacted at work.

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According to the Fair Debt Collection Practices Act (FDCPA), debt collectors cannot:

If a debt collector is contacting you, you can ask them for a callback number and to confirm information about the debt. The collector should know the amount owed and be able to tell you the name of the company the debt is owed to.

Do your own research before dealing with a debt collector. Check if they're licensed to operate in your state, or if they're still waiting for their application to be reviewed.

It's surprising how often people fall victim to scams because they don't take the time to verify the collector's credentials. This one simple step can save you a lot of trouble and stress.

Search online to see if a debt collector is licensed or if their application is pending. This information is usually publicly available and can be a huge help in protecting yourself.

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If you receive a notice from a debt collector within five days of their initial contact, they must send a written notice detailing the amount you owe, who you owe it to, and how much time you have to dispute the validity of the debt.

You have 30 days to dispute the validity of the debt, and if you do, the debt collector must verify that you owe the debt. If you don't dispute the debt within 30 days, it will be assumed to be valid.

To dispute the debt, you'll need the name and address of the original creditor, if different from the current creditor. This information is crucial in verifying the debt.

If you're being harassed by an unlawful debt collector, you can file a complaint with the CFPB, and in most cases, you'll receive a response within 15 days.

You can also report fake and abusive debt collectors to your state attorney general's office, the Federal Trade Commission, and the Consumer Financial Protection Bureau. Many states have their own debt collection laws, so it's essential to understand your rights under your state's law.

Here are the agencies you can report debt collectors to:

Make sure to research and verify the legitimacy of a debt collector before taking any action. Check your credit report to ensure the debt is yours.

A debt collector is obligated to send a "validation notice" within five days of contacting you, which includes the amount you may owe, the name of the creditor, and how to dispute the debt. This notice is a crucial step in verifying the debt's validity.

Before paying anything, confirm that the debt collector is licensed or has a pending application review. You can search online to find out if a debt collector is licensed or if their application is being reviewed.

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Check your credit report to ensure the debt is yours. This is a crucial step in verifying ownership.

Debt collectors are obligated to send a "validation notice" within five days of contacting you, which tells you the amount you may owe, the name of the creditor, and how to dispute the debt.

Ask relevant questions to clarify the debt and confirm it's yours. Don't be afraid to dispute the debt if you think the collector is in error.

This notice is a key piece of documentation that can help you verify the debt's validity.

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Research Yourself is crucial when dealing with debt collectors.

You can verify if a debt collector is licensed by searching online.

It's also a good idea to check if a debt collector is conducting business while their application is being reviewed.

If you've been targeted by a bill collector scam, report the scam to the Federal Trade Commission (FTC) and file a complaint with the Consumer Financial Protection Bureau (CFPB). This will help you take the first step towards bouncing back from fraud.

You may need to contact the creditor directly to correct a falsified debt that's appeared on your credit report. This is a crucial step to get your credit report accurate.

To stop abusive tactics from a collection agency, send them a letter asking them to cease all contact. The CFPB provides sample letters you can use to communicate with a collector.

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If you're being pursued for money you don't owe, respond to the call as soon as possible. This will help prevent the collector from continuing to try and collect the debt.

Even if it turns out the call is in error, don't delay in responding. The collector may still report negative information to credit reporting companies.

You may be a victim of identity theft, so be cautious and verify the debt before responding. The original creditor may have made an accounting error, which is another reason to investigate before paying.

Responding promptly can also prevent the collector from suing you.

If you've been targeted by a debt collection scam, don't panic. Report the scam to the Federal Trade Commission (FTC) and file a complaint with the Consumer Financial Protection Bureau (CFPB).

You'll need to contact the creditor directly to have the past-due status corrected if a falsified debt appears on your credit report.

Sending a letter to the collection agency can help put a stop to their harassing calls. The CFPB provides sample letters you can use to communicate with a collector.

For more insights, see: Reporting Harassing Debt Collectors

Here are some steps you can take to bounce back from the scam: