Attorney
General Mike DeWine
Ohioans
Report Losing Money to Debt Collection Scams
(COLUMBUS,
Ohio)—Ohio Attorney General Mike DeWine today warned Ohioans to
beware of phony calls claiming consumers owe money. The office
received more than 2,400 collections complaints in 2013, and hundreds
of those complaints involved potential scams.
Consumers
who are taken advantage of by debt collection scams often report
losing $200 to $300, though some lose thousands.
“It
can be difficult to tell the difference between a legitimate debt
collector and a con artist, because some con artists are very
convincing,” Attorney General DeWine said. “It’s also tempting
to want to pay right away to avoid problems, but it’s important to
get verification of the debt. Paying a scammer won’t solve any
problems.”
A
typical debt collection scam begins with a phone call from someone
who says the consumer is in default on a loan. (Consumers who have
applied for payday loans online may be especially at risk.) The
caller threatens to have the consumer arrested or thrown in jail
unless the consumer pays immediately, often via wire transfer or
prepaid money card. Ultimately, the caller is not a legitimate debt
collector and any money the consumer sends will be lost.
Signs
of a debt collection scam include:
Refusal
to provide documentation of the debt
Requests
for immediate payment
Requests
for payment via prepaid money card or wire transfer
Threats
of arrest or jail time
Callers
who say criminal charges will be filed unless payment is provided
immediately
Requests
for a consumer’s Social Security number or other personal
information
Use
of vulgar language
Under
the Fair Debt Collection Practices Act, third-party debt collectors
must send a letter within five days after first contacting the
consumer by phone. The letter must include the amount of money owed,
the lender the debt is owed to, and the amount of time the consumer
has to dispute the debt. Consumers also have the right to request
validation of a debt by sending the collector a letter.
Third-party
debt collectors also cannot contact consumers without identifying
themselves, tell others about the debt, or contact consumers at work
if they or their employer disapproves.
Consumers
who suspect a potential scam or unfair business practice should
contact the Ohio Attorney General's Office at
www.OhioAttorneyGeneral.gov or 800-282-0515.
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