Debt Collection Scams 9-17-24

Renters are the most vulnerable to being caught in Debt Collection Scams. Renters who are leaving their Apartments need to find out what their exit charges are and resolve these before leaving the apartment leasing office when they turn in their keys.  If they don’t, they will certainly have their debt sent to a Debt Collection Agency. They will find out that the Debt Collectors have charged 7% per month on their unpaid balance.  For a $1000 balance, this will add $70 per month to the first month, so the unpaid balance becomes $1070 to charge the next months another 7% bringing the new unpaid balance to $1145.  Your unpaid balance will increase by 84% every year. Collection Agencies have a financial incentive to not call you. They would rather run your balance up over a year or two. You old apartment leasing office can cancel the Collection Agency, but they won’t. 

Debt collection agencies can use a variety of illegal and unethical tactics, including:  

Withholding information: Debt collectors must provide information about the creditor, the amount owed, and the process for disputing the debt. 

Threatening you:  Debt collectors cannot threaten to arrest you, suspend your driver's license, or report you to immigration authorities. 

Asking for personal information: Debt collectors cannot ask for your Social Security number, bank account information, or other sensitive financial information. 

Falsely claiming a debt: Debt collectors cannot claim you owe a debt that you don't recognize, or inflate the amount of an existing debt. 

Using unconventional payment methods: Debt collectors cannot request payment by cryptocurrency, iTunes gift cards, prepaid cards, or wire transfers. 

Spoofing caller ID: Debt collectors cannot manipulate caller ID information to make it appear as though the call is coming from a legitimate agency. 

Pretending to be a government official: Debt collectors cannot pretend to be an attorney or from the government. 

If you receive a suspicious call, you can report it to the FTC or the NCDOJ's Consumer Protection Division. You can also request a validation notice from the debt collector, which should be an official letter that details your debt. 

Comments

Cash-strapped renters may be tempted to avoid paying final payments to their landlords, but that would be a big mistake. If they don’t  pay their final payments, a $1000 payment could turn into a $7000 bill.

Norb Leahy, Dunwoody GA Tea Party Leader