The Better Business Bureau frequently receives questions from consumers who have received a voice mail message asking the consumer to call a toll-free telephone number. These calls often come from a business using automated calling equipment. For good reasons, many consumers don’t wish to return a telephone call to an unfamiliar telephone number or an unknown party. Yet, consumers who do not return the call may receive repeat calls asking them to call the same number.
The BBB’s experience is that such calls are frequently placed by a debt collection company trying to locate a debtor. The call may be completely legitimate, even if it is a bit of a “fishing expedition” by the debt collection company. For example, the company may be trying to collect a debt and needs to locate a debtor with the same name as the person being called. If you return the call and satisfy the company that you are not that debtor, the calls should immediately cease.
If the caller for the debt collector asks about your Social Security number, don’t give the caller your Social Security number. Instead, ask the caller to tell you the Social Security number of the debtor the company is trying to locate. If the Social Security number provided is not your number, tell the caller that you are not the debtor that the caller is trying to locate. That should end the call and assure that you will not receive further calls regarding that debt.
Unfortunately, BBB receives occasional complaints from consumers who state that they don’t owe the debt being collected, but feel threatened or intimidated to “settle” the debt for fear of suffering damage to their credit. Some questionable debt collection businesses will try to pressure someone who they may incorrectly claim is the debtor into settling a debt that the person may not owe. This appears to happen most often with a “sub-group” of debt collection companies who are “debt buyers.” These businesses will purchase, for pennies on the dollar, old credit card that has been “written off” by a bank or retailer. The debt buyer then does whatever they can to collect a portion of that debt, keeping whatever they are able to collect. Some “debt buyers” engage in practices that may violate the law or, at best, are "borderline legal."
Under the Federal Fair Debt Collection Practices Act, a debt collector may not:
- use threats of violence or harm;
- publish a list of consumers who refuse to pay their debts (except to a credit bureau);
- use obscene or profane language; or repeatedly use the telephone to annoy someone.
False statements. Debt collectors may not use any false or misleading statements when collecting a debt. For example, debt collectors may not:
- falsely imply that they are attorneys or government representatives;
- falsely imply that you have committed a crime;
- falsely represent that they operate or work for a credit bureau;
- misrepresent the amount of your debt;
- indicate that papers being sent to you are legal forms when they are not; or
- indicate that papers being sent to you are not legal forms when they are.
Debt collectors also may not state that:
- you will be arrested if you do not pay your debt;
- they will seize, garnish, attach, or sell your property or wages, unless the collection agency or creditor intends to do so, and it is legal to do so; or
- actions, such as a lawsuit, will be taken against you, when such action legally may not be taken, or when they do not intend to take such action.
Debt collectors may not:
- give false credit information about you to anyone, including a credit bureau;
- send you anything that looks like an official document from a court or government agency when it is not; or
- use a false name.
Unfair practices. Debt collectors may not engage in unfair practices when they try to collect a debt. For example, collectors may not:
- collect any amount greater than your debt, unless your state law permits such a charge;
- deposit a post-dated check prematurely;
- use deception to make you accept collect calls or pay for telegrams;
- take or threaten to take your property unless this can be done legally; or
- contact you by postcard.
Where can you report a debt collector for an alleged violation?
Report any problems you have with a debt collector to your Better Business Bureau, your state Attorney General' s office and the Federal Trade Commission. Many states have their own debt collection laws, and your Attorney General' s office can help you determine your rights. CLICK HERE to file a complaint with the Better Business Bureau or CLICK HERE to file a complaint with the Federal Trade Commission.