Spotting a Debt Collection Scam

Here at PaydayLoansCashAdvance, we are here as both a resource for loans and as a place for information. On, it is our goal to provide you with the best in payday loans, whatever the reason for the financial need. Our customers may very often be using a loan to take care of a debt collection need, but we want to help our customers make certain that it is a legitimate debt collection rather than one of the debt reduction scam types that have proliferated in recent times. Following you will find some tips on spotting a debt collection scam.

The Laws

The Federal Trade Commission (FTC) has set forth some very specific legal guidelines that apply to debt collectors, and when you know the laws you can often spot a scam more easily. A legitimate debt collector will follow the law and will not use threats, harassment, intimidation, or bullying when conversing with you. The following rules must be observed by law:

  • A debt collector must identify themselves as such when contacting you by phone.
  • If you have made a written request to cease contact, the debt collector is legally required to do so.
  • A debt collector must be truthful and may not accuse you of illegal acts due to your account status
  • A debt collector may contact you by phone only from the hours of 8:00 a.m. to 9:00 p.m.
  • Abuse of any type violates FTC laws, this include verbal abuse, bullying, and threats of harm.

Spotting Scams

There are a number of different debt reduction scam types, but one of the more frequently observed ones happens when a debt collector tries to collect a debt that doesn’t even exist. Typically, they may be referring to an old debt that was paid off a long time ago, or even inventing a debt that supposedly existed in the past. The debt collector will use scare tactics like threats of a lawsuit for nonpayment, verbal intimidation, and threatening to send a person to jail. These are illegal actions and if you observe any of them it is a strong indicator of a scam.

Another way to spot a scam is by asking for specific information from the supposed debt collector. When the collector is not forthcoming with information regarding the debt and constantly uses vague references or changes the amounts that you supposedly owe, it is quite possibly a scam. If the debt is legitimate, the debt collector should be willing to promptly provide you with the following information.

  • The name, address, and telephone contact number for the debt collection agency, and the name of the person who is contacting you on their behalf.
  • Details about the money owed. This includes the name of the company holding the original debt, and the precise amount of money owed.


When you have the specifics about the amount of money owed and the original creditor, it is best to contact the creditor to determine if the debt is indeed valid. Don’t simply use the contact telephone number that the debt collector provides you with, but rather, look up the information for how to contact the creditor directly. Don’t trust that the debt is legitimate until you have actually verified it with the company that you have been told you owe it to.

Spotting a debt collection or debt reduction scam may not always be easy because many scam artists are becoming more and more sophisticated in their methods. Don’t fall prey to their manipulations, and always double check all the information they give you to protect yourself.

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