By now, most of us have received that robocall, supposedly from “the I.R.S.,” that they are about to file suit against us unless we call the number they leave. And most of us should know this is an out-and-out scam.
But here are a few more ways con artists try to scam you into believing their “debt collectors:”
Demanding payment on a debt you don’t remember incurring – Some fraudsters prey on the memory challenges some older people may experience, claiming they represent some back or credit card company. Maybe you have or did have an account with such an organization. If you don’t think you owe them any money, hang up on the caller and get into contact with that company on your own. Odds are, you don’t owe them anything.
Inflating an actual debt – Sometimes debt collectors will artificially jack up the amount of a legitimate debt you owe, hoping your ignorance of the law will allow them to collect more than they’re due. This process is known as “biffing” (from the term Balance In Full or BIF). One company was known to add so many artificial “fees” that it could increase the amount owed to 7x what the original debt was. If you think this may be happening to you, check with a reliable attorney before paying anything.
Collecting a “zombie” debt – Most debt is legally uncollectible after several years. Just because a debt collection agency is badgering you with repeated demands for payment doesn’t mean you’re legally obligated. As with “biffing,” seek legal advice if you’re in doubt about whether a debt is actually collectible.
“A lawsuit will be filed!” – This is almost always a pure scam. If a company is entitled to legal relief, they will just go ahead and file, then offer you a chance to pay up to have the suit dropped. No one calls you from the courthouse steps threatening to take action. No one but a con artist, that is.
