How to Avoid Collection Agency Scams

With all of the old debts floating around out in "credit limbo," it can be hard to tell which bill collectors are going after legitimate debts and which ones are just going after a random buck. Use these steps to judge whether a credit caller is actually due any money from you, and act accordingly.

Instructions

1

Verify information. When a creditor comes calling out of the blue, ask specifically what debt it is they are trying to collect, on whose behalf, and what the delivery date was for services provided. Also get details about interest or other penalties. If the representative balks, it is probably a scam.

2

Check your credit report. If you have a debt that is affecting your credit, it has to be reported on one of the three big credit databases (see Resources for Transunion, Experian, and Equifax) that monitor consumer credit. If it isn't, something is wrong. Either the collector is scamming, or the debt has fallen under the radar. Either way, you need to evaluate whether it is a legitimate collection if the judgment doesn't show up on your credit report.

3

Refer to the statute of limitations for your state. Collectors can't contact you after several years to reopen an old debt. Under statute of limitation laws, a debt is declared clean if it doesn't get follow-up communications within a set number of years.

4

Don't accommodate credit callers who ask you to go after your neighbors. Even someone who once rented in the property you are renting or buying is not your concern. Some consumers with land-line telephones say creditors are asking them to connect them with neighbors or other non-family associates. This is not legitimate. Creditors can't ask you for help doing their leg work. Report these kinds of calls to a business bureau or chamber of commerce.

5

Don't give out personal information to a credit company until negotiations are complete. Otherwise, you might find that their calls were just a front to get enough information to leverage against you.