Florida Consumer E-Newsletter
September 2008
Charles H. Bronson
Commissioner
A Message from the Commissioner
Dear Friends:
Over the course of the last 50 years America has truly transitioned into a debtor society. Today’s consumers are far more likely to borrow the funds for certain items than they are to delay the transaction until enough money has been saved to make the purchase outright. With many consumers having financial obligations to multiple institutions, maintaining good records and accurate documentation can be a real challenge. Opportunistic con-artists posing as debt collectors recognize this as an area of vulnerability and are more than willing to use it to their advantage.
Knowing your legal rights can protect you from these fake debt collectors and empower you. In this issue we have compiled some key information regarding debt collection. Remember, education is the best defense against fraud and deception. We’re here for you. Our Consumer Hotline, calling within Florida 1-800-HELP-FLA (435-7352), outside of Florida 850-488-2221 or en Español 1-800-FL-AYUDA (352-9832), will answer any consumer related questions you may have or direct you to the best resource for assistance.You can also visit us online at www.800helpfla.com for additional consumer information.
Sincerely,
In what seems to be a trend, con-artists portraying themselves as debt collectors are using intimidating tactics to scare consumers into paying debts that may not even exist. Operating under names such as U.S. National Bank, Federal Investigation Bureau, and United Legal Processing, these fake debt collectors have somehow obtained social security numbers and other personal information which makes them appear to be legitimate. More than 50 incidents have been reported recently in Florida and West Virginia. Contact may be through the U.S. Postal Service or by email, but many victims report being repeatedly called at both work and home by persons speaking with heavy foreign accents.
What should I do if I'm contacted?
Don’t send any money until you have verified the validity of the debt!! Attempt to get as much information as possible from the collector, especially a phone number. The Fair Debt Collection Practices Act (FDCPA) requires the collector to send you a written debt validation notice within 5 days of their initial communication. This notice should include the amount of the debt, the name of the creditor, as well as a notice of your right to dispute the debt within 30 days. Upon receiving this notice you should contact the actual creditor and order a free copy of your credit report at AnnualCreditReport.com. You cannot immediately assume that the debt collector is a phony. Your identity may have been stolen and your credit report will help you determine whether someone has opened accounts in your name. Also check to see if the statute of limitations may have expired on the debt. This varies depending on the state and the type of debt, but is typically between 3 and 6 years.
If you determine that there is no delinquent account, report the fake debt collector! Consumers are encouraged to contact the following agencies: the local police (file an incident report), the state attorney general’s office, and the Federal Trade Commission. You may also want to notify your bank, as well as put a fraud alert, or credit freeze into place with each of the three major credit bureaus (Experian, TransUnion and Equifax). Additionally, the FDCPA mandates that debt collectors cannot: call repeatedly or continuously, use obscene or profane language, call before 8:00 am or after 9:00 pm, threaten to use violence or contact you at work knowing your employer does not approve. Most importantly, if you make a written request for the collector to cease communication, they can only contact you one more time via mail to inform you of their final course of action.
Additional Resources
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The links below are for your information only. The goal of the Division of Consumer Services is to provide additional information to consumers. The Florida Department of Agriculture and Consumer Services does not review or confirm these sites for accuracy.
Federal Trade Commission
If you use credit cards, owe money on a personal loan, or are paying on a home mortgage, you are a "debtor." If you fall behind in repaying your creditors, or an error is made on your accounts, you may be contacted by a "debt collector."
Fair Debt Collection Practices Act (FDCPA)
Its purposes are to eliminate abusive practices in the collection of consumer debts, to promote fair debt collection and to provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information's accuracy. The Act creates guidelines under which debt collectors may conduct business, defines rights of consumers involved with debt collectors, and prescribes penalties and remedies for violations of the Act. It is sometimes used in conjunction with the Fair Credit Reporting Act.
ScamBusters.org
Posing as a collection agency representative, the con artist will contact a victim by mail, email or telephone, claiming the person owes a specific dollar amount to a particular company.
