The Federal Trade Commission (FTC) is cracking down on certain debt collectors who are using text messaging as a way to trick consumers into calling them back. While many debt collectors may reach out to consumers via text, others are doing so without following the rules associated with it.
Federal Courts in Georgia and New York recently closed down 3 debt collection agencies when they were accused of sending deceptive and even threatening text messages to consumers. Debt collectors had been reported using false statements to lure consumers into call them back. Texts included verbiage such as:
“YOUR PAYMENT DECLINED WITH CARD ****-****-****-5463 . . . CALL 866.256.2117 IMMEDIATELY.”
“YOUR PAYMENT FOR $[AMOUNT] IS SCHEDULED FOR [DATE]. CALL 866.257.2117 WITH ANY QUESTIONS OR CONCERNS.”
Chris Koegel, Assistant director of the FTC’s Division of Financial Practices, explained, “People think there’s a problem with their credit card or that they’re about to get charged for something.” Once they call in, they are quickly bombarded with debt collection attempts and threats of arrest or lawsuits.
Many define this way of doing business as “despicable.” The law indicates that debts collectors are required to fully identify themselves and their purpose for communication, every time they contact a consumer. Debt collectors that are legitimate are fully aware of the rules and they cannot harass, threaten or lie to you.
Within five days of being contacted, debt collectors are also required to send you a “validation notice” in writing, indicating the amount owed, the creditor’s name, and steps to follow if you want to dispute the amount.
It is advised that you never respond to a debt collector until you receive the validation notice. If you receive one of these deceptive messages and call a debt collector, hang up and file a complaint immediately. The FTC website provides more information on how to deal with these debt collectors.
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
Source: http://www.nbcnews.com/business/consumer/ftc-cracks-down-deceptive-debt-collection-texts-n374341