What Are The Best Ways To Find Out If A Debt Collector Is Legit?

Discussion in 'Debt Collection' started by thisnthat, May 17, 2016.

  1. thisnthat

    thisnthat Active Member

    Nobody likes dealing with debt collection. It's even worse when you aren't sure the person claiming that they have authority to collect is legitimate. So, how can you find out for sure? What are your best tips for proof that you are about to pay a real debt collector and are not just getting scammed?
     
  2. remnant

    remnant Member

    This is a very important consideration because it is an issue that borders on personal security. Criminals are creative types and may fish out the details of one's debts and then conduct a day light robbery under the guise of debt collection. I would suggest that any debt collector not accompanied by a genuine court warrant and or security officers is the best detection of rogue debt collectors.
     
  3. Alexandoy

    Alexandoy Active Member

    I haven't encountered a debt collector yet since I am not delinquent with my loans. But my sister-in-law has an experience when she reneged on her credit card payments. The debt collector was just a messenger who brought the demand letter of the law firm. But since my sister-in-law was in panic mode, she immediately entertained the guy to learn more about the problem. Fortunately the guy was a legit debt collector otherwise my sister-in-law may be paying bribes (to the extortion of the scammer).
     
  4. Zeta

    Zeta Member

    I've never been in a situation where I had to talk to a law firm and remit my payments to them. If this happens to me, I'll call the law office to verify the person's identity. I'll also call the financial institution to verify my account's status. Now, assuming I really have to pay the law firm, I would prefer to pay by check and demand a receipt for the payment. I'll make the check payable to either the bank or the law firm itself.
     
  5. thisnthat

    thisnthat Active Member

    The thing is that there are a lot of debt scams out there. If you had an old debt for something, someone can claim to be collecting on it. In some cases, it could be true. There are companies that buy debt from others who don't want to pursue you themselves. There are also scammers who claim to be making collections when they really aren't. They just take your money, but you still owe the debt to the real people.
     
  6. vinaya

    vinaya Member

    I burrow money from financial institutions such as bank, investment companies, finance companies,or from persons (money lender/relative/friend). Since I am indebted to the institution or person I know very well, and I may my EMI regularly, I don't have to deal with debt collectors. If any debt collector approach me, I will identify him as a scamer.
     
  7. Zeta

    Zeta Member

    That is why you have to talk to the financial institution from whom you owed the debt. You cannot just make payment to a third party without due notice from the original creditor. If the debt has been passed on to a new company or a third party, this should be communicated to the debtor. There would also be a paper trail that will prove the transfer of collection rights. These acts require public notarization. If the debt collectors show a notarized document, you can verify this from an appropriate government agency.

    In addition, if you really want to pay your debt but are not convinced as to the legality of paying to a third party, you can deposit your payment to a court pending the ascertainment of which party is entitled to the payment.
     
  8. Binu

    Binu Member

    The first criteria to check whether the debt collector is legit or not is to see his identification. Does he have an identity card issued by the company? You can call the company and check whether the one who has come to you to collect debt works in the company of not. Never pay in cash. Always pay in checks. If you find the debt collector was fake,you can immediately call the bank and block the check.
     
  9. thisnthat

    thisnthat Active Member

    I guess it works differently in different areas. I've never heard of anyone receiving a notarized document from a third party debt collector. Half the time, you can't even find the original information on what you actually owe. There may have been additional fees added. You can't just pay the original guarantor either, if they sold the debt.

    Which government agencies would you look to for answers?
     
  10. tpicks

    tpicks Member

    One simple way of finding out if a debtor collector is legit is to ask the person for means of identity. If still in doubt thinking they are not genuine you may chose to verify the means of identity.
     
  11. PsychAL

    PsychAL New Member

    An easy way to tell if one is a legitimate debt collector is to verify his identity such as inspecting his identification card. Also, you must inquire with the company he is working for, whch creditor does he represent, and other details known to you. He must likewise inform you of the details of your debt so you will be reminded on how to settle it. In my jurisdiction, at least, most legitimate debt collectors have to be employed or affiliated with financial instiutions or law firms in order to prove their authenticity.
     
  12. pwarbi

    pwarbi Active Member

    I think this will differ from country to country, but here in the UK you can easily check if the debt colloctors are legitimate or not, as they have to carry checkable I.D cards around by law.

    A few years ago there was a lot of loan sharks around, and they used the more unscrupulous debt collectors but these days things do seem to be above board in the majority of cases.
     
  13. JimG

    JimG New Member

    Dоn’t givе оr соnfirm with thе саllеr аny pеrsоnаl, finаnсiаl, оr оthеr sеnsitivе infоrmаtiоn. Fаkе dеbt соllесtоrs, аnd оthеr sсаmmеrs, саn usе yоur infоrmаtiоn tо соmmit idеntity thеft аnd оthеr сrimеs.
    Соntасt yоur сrеditоr. If а dеbt is lеgitimаtе – but yоu think thе соllесtоr isn’t – соntасt yоur сrеditоr. Tеll thеm аbоut thе suspiсiоus саll аnd аsk whо, if аnyоnе, thе сrеditоr hаs аuthоrizеd tо соllесt thе dеbt.
    Rеpоrt thе саll. Filе а соmplаint with thе FTс аnd yоur stаtе аttоrnеy Gеnеrаl's оffiсе with infоrmаtiоn аbоut suspiсiоus саllеrs. Mаny stаtеs hаvе thеir оwn dеbt соllесtiоn lаws in аdditiоn tо thе fеdеrаl FDсPа.
     
  14. thisnthat

    thisnthat Active Member

    So, in other countries debt collectors go door to door? That might happen here, but I have never heard about it. It's usually a letter or a call claiming that you owe some money. The letters are quite vague. They don't say who the money is actually owed to just that they need to collect it from you. There are threats of the debt being used to hurt your credit score, etc.

    I think the original company should have to be listed, no matter who is trying to collect. I think that would help avoid some of these scams.
     
  15. Dina

    Dina New Member

    A few months ago I had a recurring call about a debt that I had no connection to. The caller said they would be at my house at a specific time to serve me papers. Of course they never arrived. I never answered the phone. After the 5th call, I realized it was a recording. They changed the recording a little each time.
     
  16. PaperdollWendy

    PaperdollWendy New Member

    I wouldn't deal with any debt collectors over the phone, it's just too easy for them to be fake. Always ask for them to mail you papers if you agree to anything before remitting any $ or giving out your credit card or debit card numbers.