Debt collection scams on the rise during COVID-19 pandemic

ByJeff Ehling KGO logo
Thursday, October 22, 2020
Debt collector scams on the rise during pandemic
If you get a call from someone saying you owe them money, there are some things you can do to make sure it is not a scam.

HOUSTON, Texas -- The Federal Trade Commission reports it is already seeing an increase in debt-related complaints, either from abusive collection tactics or from scammers.

We've seen fake debt collectors in the past and usually, they come out during an economic downturn.

If you get a call from someone saying you owe them money, but you cannot recall the debt or maybe it is something you already paid off, there are some things you can do to make sure it is not a scam.

Get some basic contact information, like the debt collector's name, the company name and the mailing address and phone number of the company.

If they don't give you that information, you should consider that a huge red flag.

RELATED: College students struggle to pay off loans during COVID-19 pandemic

You may qualify for a host of programs designed to help you with your debt load from school. Here's a breakdown of some of those options.

Something else to look out for: Debt collectors using high pressure tactics to get you to send money right away or if they threaten law enforcement action.

You have the right to dispute a debt and the debt collector must give you that information too.

If they don't, it's likely a scam, according to the FTC.

You can report the calls to the FTC.

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David Auten and John Schneider explain what the lasso method is and how it got them out of debt.

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