While many of us know the stresses of dealing with credit collectors, very few people actually know what their rights are in these situations. With an increase in debt collection scams and consumer victimization going around, the Federal Trade Commission works diligently to inform consumers of what to watch out for.
You may have received a phone call from an automated system informing you of changes to your account or an opportunity to lower your interest rate. Often hiding behind the name “card services” these automatic calls attempt to lure consumers into paying for services or providing personal information in exchange for making enticing changes to the account. Although this sounds like a good deal, these calls are most likely part of a new scam.
Protecting yourself in tough financial times can be difficult. It isn’t easy for some to parse out legitimate help from the fraudulent. However, following these simple tips can ensure better protection of your finances and personal information:
Never do business with robocallers — any unsolicited contact should be considered a warning sign.
Only communicate with a verified representative from your credit company — unauthorized debt negotiations can cause serious problems down the road.
Don’t pay for debt settlement or negotiation services— unless you hire an attorney, these actions can be performed directly between you and the creditor.