Many people facing debt are harassed by creditors. Debt collection agencies will constantly call those who owe money to creditors. These calls can add stress to a situation that has already become unmanageable.
This week, a judge ordered that companies that use overseas workers to make fake debt-collection calls be shut down. The problem has affected thousands of people who owed nothing. After the Federal Trade Commission sued a group of companies, the judge issues an order shutting them down, to help prevent people from paying money to companies that isn't owed.
The FTC says these companies operate using fraud. They target consumers who submitted personal identification information when applying for payday loans. The companies then had people in India call to ask for money that was owed, when in fact the people didn't owe anything.
The investigation into the fraudulent debt collection calls is in its early stages and the FTC isn't sure how the company involved obtained the personal information. The people applied for payday loans with legitimate companies, which suggest that the information was stolen.
Some people are confronted with debt collection calls from multiple creditors. They may easily lose track of who they owe and how much they owe. Receiving a fraudulent call when they are working to pay off creditors can leave some people victims of fake collection calls.
Debt can get out of hand for some people and they may be faced with harassing debt collection calls. Speaking with an experienced bankruptcy attorney may help stop the harassing phone calls and make sure that no fraud is committed by collectors.
Source: Business Week