Steps to take when debt collectors dial you by mistake

Waterbury Republican-American ^ | September 4, 2011 | Claudia Buck

[Graybeard58]

There may be only one thing worse than getting called by a debt collector: getting called by mistake.

These days, more and more people report getting "robo-dialed" by debt collectors looking for people with similar names, similar phone listings, similar addresses.

The calls come several times a week, often at odd hours, sometimes apparently from overseas call centers. It's annoying, irritating and -- when a collection call jolts you awake late at night -- sometimes downright frightening.

Take Ted Gibson, a retired government economist in Sacramento, Calif. He's listed as "T. Gibson" by the phone company, which means he's frequently called by collectors looking for folks with similar initials.

Although he says he and his wife pay off their bills, do not run up credit-card charges and have clean credit histories, "we receive five to six calls a week from various collection outfits who have apparently obtained a list of phone numbers and feel they can dial at will."

In the last 18 months, they've received collection calls for a variety of other Gibsons whose first names start with "T." Many of these other Gibsons, he says, appear to have multiple outstanding debts, "so there are a least a dozen different bill collectors hounding us night and day."

State and federal officials say debt collection calls — including those to the wrong person -- are increasing and are "a serious consumer protection problem." Last year, the Federal Trade Commission logged 140,000 complaints about debt collectors, everything from calling the wrong person to leaving threatening messages.

In some cases, the erroneous calls are simple cases of mistaken identity. Others may be legitimate attempts by debt collector trolling through phone listings trying to find a match.

Or they could be fraud, attempts to wrestle money from financially vulnerable victims.

Debt collection fraud has "always been there ... but it seems like it's hot right now," said Joanne McNabb, chief of the California Office of Privacy Protection.

"People may be more susceptible to a debt collection scam because -- in this economy -- they have debts. Scammers are taking advantage of people's concerns."

How to protect yourself?

First, don't hang up. Ask for the person's name and their company's name. Ask that you be given written verification of the debt. (It could be the debt is yours, but one you've forgotten.)

"If they're making threats or asking for personal information, it's a sign they're a scam," McNabb said.

Before telling them "never, ever call me again," try getting some information. "Sometimes there's some value in talking with them," said Tom Pahl, assistant director of the FTC's consumer protection branch.

By law, debt collection callers must send you a written confirmation within five days that states the creditor's name, the amount owed and procedures for disputing the debt. After you get that verification notice, you should respond -- in writing -- within 30 days.

"If it's obviously not you -- you've never had a Sears card or you were in Iraq or it's a different middle initial --- you can report that back in writing," Pahl said. "The collector might take you out of their calling system."

You can also tell them you want the calls to cease. (They're allowed to make one more contact, either to confirm they won't make further contact or to announce further action, such as taking you to court.)

Many people think they're safe from debt callers if they've signed up for the federal Do Not Call list. But that bars only telemarketers, not debt collectors, McNabb said.

If you're harassed by too many errant debt-collection calls, the state's privacy chief recommends calling your phone company and requesting that your number be unlisted. It may not make the problem go away immediately or completely, but it's a start.

"If you have caller ID, get the phone number of who's making the call. Report it to your phone company, which will investigate," McNabb said.

Part of the problem, said the FTC's Pahl, is that many debt collectors buy bundled packages of old debts. If you've complained but they haven't "scrubbed" your number out of their system, it can get passed along every time a new debt collector takes up the package.

"The more difficult you can make it, the better," Pahl said. "Collectors will make an assessment whether it's worth trying to continue finding you."

Some collectors try to intimidate consumers into paying debts they don't actually owe. Don't fall for it, say state and federal officials.

If a debt is too old -- typically three to six years for credit card debts in most states, for instance -- it's beyond the statute of limitations for collection. But a collection agency can still try to collect from you.

"It's extremely confusing," said the FTC's Pahl. After a certain time, "You can't be sued, but they can still call you to collect on it. And if you do make a payment, the debt becomes live all over again."

It happens. Pahl said he's heard from people who paid collectors $200 for accounts that weren't legally valid, "just to make them stop calling."

Officials admit there's no easy solution to stopping mistaken debtor calls.

For Gibson, it's been a constant headache. He's got an unlisted phone number, is on Do Not Call lists and did file a police report, at the suggestion of his phone company. But nothing's changed.

"It's irritating. It's frustrating. ... It's a real disadvantage to have a common name."

So Gibson has devised perhaps the only foolproof solution: When the phone rings, he doesn't answer it.

[thulldud]

In Soviet Russia, DEBT COLLECTS YOU!

Coming soon to a country near you.

[Pan_Yans Wife]

I know a young man whose name is Mark A. Smith III.

His father’s name is Mark A. Smith II.

His father used Mark A. Smith III’s social security number and credit rating for all kinds of accounts and credit cards. When the father went into default on the loans, he didn’t care, because none of the debt would be tracked back to him, it would be put on the son’s credit rating.

Then the creditors started calling around, to anyone and everyone who knew the son, Mark A. Smith III.

When they called me, I was kind of confused. I knew the son probably hadn’t racked up bad credit or owed anything to anyone. I didn’t say much to the bill collectors. When I contacted Mark’s wife, she was greatly upset. She knew at once what her sleazy father-in-law had done.

They called me a few more times after that. I patiently explained to them that they were looking for the father, not the son. I told them what the father had done to the son.

I also told them to remove my name from their call list. I refused to answer any of their questions.

When I call the wife from time to time to let her know the calls are still happening, she is really embarrassed. I feel badly for her. It isn’t her fault.

It must really be painful to be the son and to know that your father is using your identity and destroying your credit rating at the same time. I feel badly for the son.

[Figment]

In any case, I’ll never again get a listed phone number.

I have always had a listed number. it's listed in a fictitious name though

[Sky Slug]

When I had a Dallas area code, I had the number of a Mr. Rigoberto Lopez. Mr. Lopez seemed never to pay a bill, and the collection calls would happen non-stop. I first tried to reason with them, then I would ask them to call Verizon and ask for the name on the account, the calls never stopped. When I had enough, and importantly, when I was alone, and a collection call came in I’d just say the most vile things I could think of to the person on the phone. It wasn’t nice, it wasn’t pretty, but the collection calls certainly came to a screeching halt.

[packrat35]

Changing your number is the only way to get them to stop.

[spokeshave]

Get a few phone numbers of these companies....

Then....when one rings you say"

Call me back on my other line.....and give one of those numbers.