Collecting Debts
Bad Debt Consolidation by splinder
Filed under Debt Management
Collecting Debt: How does a Scammer Act?
The increase in debt collection scams has given rise to identity thefts. The victims of identity theft can prove the fakeness of accusations under the rights bestowed upon them by the Fair Credit Reporting Act.[br]
Collecting Debt: How does a Scammer Act?
Illegal debt collection activities and scams have been uncovered in several states. Scammers threaten to sue the victims and blame them of defaulting on loans. They ask the victims for their bank account information to get the money electronically before the case reaches the court. The victims are also asked to wire the money. They have to face numerous harassing and abusive calls made by collection agents. Many collection agents also represent themselves as lawyers working at the Federal Legislation of Unsecured Loans or the Financial Accountability Association.
Collecting Debt: Identity Theft
In debt collection, identity theft occurs when a collection agent makes use of someone’s name, date of birth, social security number and other private information for fraudulent activities without the owner’s permission. Bogus debt collectors also have information about employers, old bank account numbers, home addresses and even some credit references of the victims.
Collecting Debt: Rights of Victims of Identity Theft[br]
Identity theft victims have been given the following right by the Fair Credit Reporting Act (FCRA) to help them recover from identity theft:
· You can get a fraud alert placed in your file by the nationwide consumer reporting agencies (CRA). This is to bring to the knowledge of potential creditors and others about the theft of your identity.
· You can get the documented information about fraudulent transactions made on your account. This includes the account opened in your name and address. If you ask for this information in writing, the creditors are bound to provide you documents about fraudulent transactions and accounts. You may be asked to submit your identity proof and a police report.
- You can obtain a copy of all the information in your file as per an initial fraud alert from the three nationwide agencies. In case of an extended alert, you are entitled to two free file disclosures within a year.
- You can ask businesses to not report any information to consumer reporting agencies, if you are suspicious of identity theft.