Beware of Fake Debt Collectors – FDCPA May Not Protect You

Over the last several decades, America has truly transitioned into a debtor society. Despite tough economic times, consumers are more likely to borrow than they are to delay when making a purchase. With consumers having financial obligations to multiple institutions, keeping accurate records and documentation can become a challenge. Opportunistic con artists posing as “fake” debt collectors recognize this as an area of vulnerability and are more than willing to use it to their advantage.

These fake debt collectors speak English with a foreign accent and call themselves “Affidavit Consolidation Services,” Criminal Bureau of Identity,” “U.S. National Bank,” “US Justice Department/Payday Loan Division,” “Federal Investigation Bureau,” “United Legal Processing” and other phony names. They refuse to disclose real names and addresses and are believed to be operating from homes, automobiles, and foreign countries such as India. As these scammers have kept themselves well hidden, law enforcement authorities have been unsuccessful in locating or shutting them down.

Fake debt collectors typically pose as lawyers, law enforcement officers, investigators, and bankers while attempting to collect on phony debt. They threaten consumers with immediate arrest for “bank fraud” or other crimes unless funds are wired immediately. They scare and confuse consumers by using meaningless legal phrases such as “We are downloading warrants against you” or “We are filing an affidavit against you.” Consumers that do not immediately fall for the scam are warned, “Only God can help you now.”

Fake debt collectors almost always call consumers at work – sometimes several times a day – advising their supervisors, “Your employee has committed bank fraud and is about to be arrested.” Such threats have been unsettling to consumers and employers. Because the scammers make a special point of calling at work, employers should realize that their employee is an innocent victim of a criminal enterprise and cannot stop the calls voluntarily.

“My office works to protect consumers from fraudulent activities by seeking to stop deceptive practices and resolving consumer complaints,” stated Florida Attorney General Bill McCollum. “However, a consumer’s best defense is to be aware of the scam so all demands for money can be resisted and personal identification information is not misused.”

In general:

A debt collector may contact you in person, by mail, e-mail, telephone, telegram or fax. A collector may not contact you with such frequency that can be considered harassing. A debt collector may not contact you at work if they know your employer disapproves nor may they contact you at unreasonable times or places, such as before 8 a.m. or after 9 p.m.

A debt collector is required to send written notice within five days of first contact advising the amount due. The notice must also specify the name of the creditor and what action to take if you wish to dispute the debt.

You may stop a debt collector from contacting you by writing a letter ceasing them from communication. Once the agency receives it, they may not make further contact except to advise there will be no further contact or to notify you of a specific action contemplated by the creditor.

A debt collector may not harass or abuse a consumer. A collector may not use threats of violence against a person, property or reputation; use obscene or profane language; advertise the debt; or repeatedly make calls with the intent to harass or abuse the person at the called number.

A debt collector may not use false statements, such as implying they are attorneys; that you have committed a crime; that they operate or work for a credit reporting agency; misrepresent the amount of a debt; or indicate that papers mailed are legal forms when they are not.

A debt collector may not threaten arrest or that they will seize property or garnish wages unless the collection agency or creditor intends to do so; or that a lawsuit will be filed when they have no legal right to file or do not intend to file such a suit.

If you are being harassed by a debt collector – real or fake – file a complaint with the Attorney General’s Office by calling (866) 9-NO-SCAM (866-966-7226) or by visiting their website at The Federal Trade Commission also offers a consumer collection guide detailing your rights at


William E. Lewis Jr. & Associates is a solutions based professional consulting firm specializing in the discriminating individual, business or governmental entity. To learn more, tune into “The Credit Report with Bill Lewis,” a daily forum for business and financial news, politics, economic trends, and cutting edge issues on AM 1470 WWNN.

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