How to Tell The Difference Between A Legitimate Debt Collector and Scammers

Whenever you receive a call from someone claiming they are a debt collector, you question whether they are real. Your doubts are not entirely baseless, as many fraudulent agencies and individuals would steal your money by claiming they are genuine debt collectors. However, legitimate debt collectors can also contact you for overdue payments. Knowing how to differentiate between scammers and the real deal can help protect you against fraud.

Here are the things you should look for when differentiating between a legitimate debt collector and a scammer. 

Withholding information

One thing a legitimate debt collector will never do is withhold information from you. They disclose every detail about the debt, such as who the creditor is, how much money is overdue, who they are, and verification of the debt if you dispute it. Something is fishy if the person talking to you is unwilling to provide such information. 

Pressurising you to pay money

If the person claiming to be a debt collector pressures you to make payment by money transfer or prepaid card, it is a red flag. These modes of payment are very hard to trace, and you can lose a significant amount in fraud. 

Makes false threats

If the person contacting you for Online debt collection poses as a government official or threatens you with jail time, it is a sure sign that you are dealing with a fraudster. Legitimate agencies won’t make these threats as they are bound by laws and cannot use such measures when talking to customers. 

Threatening to tell your friends or family

When a person identifying as a debt collector tells you they will inform your workplace, family members, or friends if you don’t pay up, you are dealing with fraud. Debt collectors are legally bound not to reveal your finances or debts to anyone else except your spouse or your legal advisor. They can be sued if they do, so they don’t ever inform anyone else except you. 

You don’t recognise the debt

When the debt collector calls and tells you the amount you need to pay for a certain debt, and if you don’t recognise it, you might be dealing with fraud. You can ask them to provide debt verification documents, which include the invoice, the creditor information, and other relevant details. A legitimate debt collector will provide you with all the information in writing through email. 

Asking for sensitive financial information

A legitimate debt collector will never ask you for sensitive financial data such as your bank account details, social security numbers, credit card details, or routing numbers. Never share this information with anyone on call. Legitimate debt collectors will only provide you with modes of payment that you can opt for to pay the debt.

About us 

DebtCo is the only all-service digital collection company you need for payment collection woes. We have developed an innovative digital debt collection platform that can take care of all your collection problems, regardless of your industry. You can reach out to us at 01376 800 592 or request a meeting to learn more about small business debt collection.

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