Debt Scamming Scares: A True Halloween Nightmare

FORT LAUDERDALE, Fla., Oct. 30, 2013 /PRNewswire/ -- In Alabama, debt scammers are threatening to cut off electricity if a person doesn't pay immediately. In Louisiana, they're telling shell-shocked residents that police will show up at their door and arrest them.  In Maryland, they called a woman 12 times a day and yelled at her – over a $625 debt she didn't even owe.

"While Internet scams get the most attention, many serious and threatening scams are over the phone from debt collectors who feel no shame scaring people who are behind on their payments. These tactics are illegal and we need to spotlight this growing crisis," says Howard Dvorkin, CPA and founder of ConsolidatedCredit.org, a national credit counseling organization.

Dvorkin, whose second book Power Up: Taking Change of Your Financial Destiny (Wiley 2013) was released this month, has seen all sorts of scams. There are several telltale signs people need to be on the look for:

• "Pay up right now, or I'll sue!" A lawsuit doesn't happen overnight and a person will receive a summons or complaint in the mail. Ask the caller if they are an attorney and where they practice so you can look them up on the state bar association website.
• "Pay today or I'll have you arrested for check fraud and thrown in jail!"  It's not a crime to have a debt, it's a civil case. Check fraud means something completely different. Ask the caller what specifically the charges are.
• "I'm a police officer, and I'm calling to collect a debt!" Police officers don't make phone calls collecting debts – they're not involved in the debt-collection process at all. Ask the caller for their badge number.

Bottom line: People should not be intimidated and must tell the caller that they won't tolerate threats and if they continue, they'll be reported to the Better Business Bureau and police. People dealing with debts shouldn't wait for debt collectors to call them; they should contact ConsolidatedCredit.org and have a certified counselor help resolve debt issues.

About: Consolidated Credit has helped over 5 million people over the past 20 years with financial issues. Their mission is to assist families throughout the United States in ending financial crisis and solving money management problems through education and professional counseling.

Media Contact: April Lewis-Parks 954-377-9344 [email protected]

SOURCE Consolidated Credit

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