If you get a call from a debt collector, first make sure the debt is real.
When you are contacted, find out the following:
- Who you are talking to, including the debt collector's name, address, and phone number;
- The amount of the debt, including any fees such as interest or collection fees;
- What the debt is for and when the debt was incurred;
- The name of the original creditor; and
- How you can dispute the debt or make sure it is yours.
When a debt collector first contacts you in writing regarding a debt, he or she must provide you a written notice that has certain, legally-required information. If the collection agency first contacts you by phone, insist that they contact you in writing. Do not give personal or financial information to the caller until you have confirmed it is a legitimate debt collector.
By law, they must send you a written ‘validation notice’ within five days from when they first contact you. If they do not send this notice to you, you do not have to talk to them.
The validation notice will say:
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how much you owe,
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who you owe it to, and
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how to dispute the debt.
If they won’t tell you how much is owed or if they say you have to go to court to learn more or they won’t send you a validation notice, those are all red flags. Do not give them any information over the phone, not even your address or email because it could be a scam.
Take Note!
You can refuse to discuss the debt until you get a "validation notice."
Also, it is illegal to operate as a debt collector in Texas without filing a bond. Third-party debt collectors and credit bureaus are required to file a $10,000 surety bond with the Texas Secretary of State before engaging in debt collection. Tex. Fin. Code. § 392.101. The names of third-party debt collectors and credit bureaus that have filed bonds may be searched on the Texas Secretary of State's website.
If they do not give you a validation notice, ask for it! You have 30 days to dispute the debt after you receive a validation notice. The debt collectors are required by law to respond to you if you request more information within that timeframe. If you have missed the 30-day deadline and you believe the debt is not yours, you should still send the letter. For a sample letter on how to dispute a debt a creditor says you owe, see Step 2: Get Proof.
Third-party debt collectors and credit bureaus are required to file a $10,000 surety bond with the Texas secretary of state before engaging in debt collection. Tex. Fin. Code. § 392.101. The names of third-party debt collectors and credit bureaus that have filed bonds may be searched on the secretary of state's website.
Signs You are Dealing with a Scammer
The tips below are from the Consumer Financial Protection Bureau.
The debt collector threatens you with criminal charges. Legitimate debt collectors should not claim that they'll have you arrested.
The debt collector refuses to give you information about your debt or is trying to collect a debt you do not recognize. Debt collectors are legally required to give you certain informaton. If you do not think the debt is yours or you think it is a scam, ask for information about the debt in writing and don't pay or give them additional information before you get it.
The debt collector refuses to give you a mailing address or phone number.
The debt collector asks you for sensitive personal financial information. You should never provide anyone with your personal financial information unless you are sure they're legitimate.
You can also check out this helpful resource from the Federal Trade Commission.
Here is a helpful resource specifically related to payday loan collection scams.