ClarksvilleNow Reporting
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Following a series of complaints from residents about scammers posing as debt collectors, the Better Business Bureau (BBB) of Middle Tennessee is warning consumers to be aware of their financial and personal safety if contacted by businesses claiming to be collections agencies, process servers, government agents or phony law firms.
According to the BBB, individuals referring to themselves as the S&P Law Group of Washington, D.C. contacted a local family threatening to arrest their son should they fail to pay what they claimed to be a debt that he had acquired. The family in question paid the phony law firm $800 before discovering the operation to be a scam after contacting the BBB, which investigated the matter in depth. Contacting the scammers with the phone number used to threaten the family, 202-652-2430, the BBB was unable to elicit a response from the individuals responsible.
If contacted by an organization claiming to enact arrest warrants, criminal prosecution, wage garnishments or high debt collection fees for allegedly unpaid personal loans, back child support or past due student loans, the BBB would like to make Middle Tennessee residents aware of their rights and the laws regulating debt collections, which prohibit debt collectors from using abusive, deceptive and threatening collection practices. This means that groups making collections cannot use inappropriate or offensive language, misrepresentations, or threats of violence or legal action when speaking with consumers.
In short, no law allows an individual to be arrested for failing to pay a past due debt, though there is a law making it unlawful for legitimate debt collectors to bully anyone with the threat of an arrest.
Consumers can also be alerted to the presence of a scam if those asking for money are able to reveal personal information such as dates of birth, Social Security numbers, employer names, or the names of friends and family members. The use of such information makes the claims of supposed debt less creditable.
If you think you are in immediate danger, contact local law enforcement.
If you have been the victim of a collection scam and are concerned about your personal financial information, contact your banking institution and/or credit card company immediately or contact the Federal Trade Commission at 877-382-4357 or online at www.ftc.gov.
If the scam involved the Internet, contact the Internet Crime Complaint Center at www.ic3.gov.