They say debt never dies—it just haunts your bank account like a ghost that won’t move on. And scammers? They’re more than happy to play the role of ghost whisperers.
A new wave of debt collection scams is hitting the Upstate, with fraudsters using fear tactics to pressure people into paying fake or old debts. The Better Business Bureau (BBB) of the Upstate warns that many victims are tricked into believing they owe money on so-called "zombie debt"—and some are losing money without even reporting it.
How It Works:
Scammers are contacting people via phone calls and text messages, claiming they owe money on long-forgotten loans or government debts. These fraudsters use high-pressure tactics, threatening lawsuits, fines, and even jail time to manipulate victims into making payments immediately. In some cases, they provide fake details that make the debt seem legitimate.
Who’s Targeted:
Anyone with a credit history can be a target, but scammers tend to focus on individuals who may have had past financial troubles or outstanding loans. Those who are unfamiliar with debt collection laws are particularly vulnerable.
Real-Life Example:
According to Hunter Jones, President of the BBB of the Upstate, nearly two dozen reports of these scams have surfaced in the past year. “People fear their credit score is impacted. They fear owing debt, and unfortunately in America, that is common,” said Jones. “Scammers love to take advantage of that fact.”
Why You Should Care:
If you fall for one of these scams, you could end up sending money to criminals while still owing the real debt. Worse, these scammers may collect your personal and financial information, leading to identity theft or further fraud down the line. Even if you don’t pay, their scare tactics can create unnecessary stress and anxiety.
How to Protect Yourself:
- Request a Validation Letter: If someone claims you owe a debt, you have the legal right to request written proof. A real debt collector will provide documentation.
- Check Your Credit Report: Regularly monitor your credit for any suspicious activity. You can request free reports from the major credit bureaus.
- Never Pay on the Spot: Scammers create urgency, but real debt collectors must follow regulations. Take your time to verify any claims.
- Research the Agency: If contacted, look up the debt collection agency’s name and phone number. Legitimate agencies will have a verifiable online presence.
- Don’t Click on Links: Avoid clicking on any suspicious links in text messages or emails related to debt collection.
Quick Tips & Updates:
- Quick Tip #1: "Did you know? Debt collectors are legally required to provide a written validation notice within five days of first contacting you. If they don’t, it's likely a scam."
- Quick Tip #2: "Pro Tip: Placing a credit freeze on your account can prevent scammers from opening fraudulent accounts in your name."
Stay safe, stay informed.
Definitions of Key Terms:
- Zombie Debt: Debt that is old, has been forgotten, or previously settled but resurfaces, often targeted by scammers.
- Validation Letter: A document provided by legitimate debt collectors that outlines the details of the debt and confirms its authenticity.
- Credit Freeze: A security measure that prevents new credit accounts from being opened in your name without your consent.
- Better Business Bureau (BBB): A nonprofit organization that helps consumers identify trustworthy businesses and reports scams.
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