Attorney General warns of debt collector scams
May 4, 2009 - The Kansas Insurance Department recently issued an alert to Kansas consumers receiving fraudulent collection calls. The report which prompted the alert involves a caller attempting to collect on a loan deposited in the victim's bank account. The caller demands repayment - with interest - and requests the victim's bank account information and cell phone number. When the victim requests the caller's contact information, the call suddenly ends.Attorney General Steve Six would like to remind Kansas consumers of their rights under the Fair Debt Collection Practices Act (FDCPA), and to be wary of providing personal information over the phone to callers representing themselves as debt collectors.
Under the FDCPA, a debt collector may NOT: 1) communicate or attempt to communicate with you at inconvenient times or places, such as before 8:00 AM or after 9:00 PM, 2) engage in harassing, oppressive or abusive conduct, 3) use false, deceptive, or misleading representations or methods in attempting to collect a debt, and/or 4) refuse to disclose his or her identity during any telephone communication.
In addition, within five days of initial contact with you, the debt collector must send you a written notice which includes the following: 1) the amount of the reported debt, 2) the name of the creditor to whom the debt is owed, 3) notification that unless you, within thirty days after receipt of the notice, dispute the validity of the debt or any portion thereof, the debt will be assumed valid by the debt collector, 4) notification that if you dispute the debt in full or in part within that thirty day period, the debt collector will obtain verification of the debt and mail it to the consumer, AND 5) notification that upon your written request within the thirty day period, the debt collector will provide you with the name and address of the original creditor.
If, within thirty days after receiving written notice of the debt from the debt collector, you send the collection agency a letter stating that you dispute the debt, or wish to receive no further contact, the debt collector must stop contacting you. The “Cease Communications” letter must be hand delivered or postmarked within thirty days of the first written notice from the debt collector. Consumers should know that sending this type of notice does not resolve the debt.
If a debt collector or collection agency refuses to provide contact information to you, it is a scam. Please do not provide personal information, such as Social Security numbers or bank account information, over the phone. If you suspect the legitimacy of any debt collector or collection agency, please contact the Office of the Attorney General Steve Six, Consumer Protection Division at 1-800-432-2310 or visit www.ksag.org to file a complaint.