Money Minute: Debt collector scams

Money Minute: Debt collector scamsMoney Minute: Debt collector scams

New information from the Federal Trade Commission (FTC) on debt collection calls shows they are spiking.

Almost 280,000 people nationally have complained in the last year about them, and at least 41% of them are threatening or fraudulent. In Minnesota, 2,000 debt collector complaints have been filed with the FTC.

“Outright scams, they’re not actually legitimate collection efforts … they are people posting as debt collectors hoping they can collect something from someone who doesn’t take the time to figure out if it’s a legitimate debt,” said Thomas Nitzsche with Money Management International.

He says it’s a sign of the times as consumer debt grows, so do these scams, often starting with old debt, like medical debt, old credit cards and even a utility bill.

“They’ll just try to convince you to make payment and rush you into making payment,” Nitzsche added.

If you get that call, ask questions like:

Where is the payment going?

When did the debt originate?

Who’s the original creditor?

“They legally have to send you proof that you owe the debt,” Nitzsche said.

Most importantly, if it’s an old debt beyond six years in Minnesota, it’s past the statute of limitations on collections and could easily be a scam.

In addition, when you tell them to send you the documentation, have them tell you the address they have on file, give as little personal information as possible and if you suspect it’s a scam, don’t promise to pay them until they prove it’s your debt.

The post Money Minute: Debt collector scams first appeared on KSTP.com 5 Eyewitness News.