Pretends you owe a debt
Fake debt collector call
Is a call saying I owe a debt and will be arrested or sued a scam?
Yes. Real debt collectors can't threaten to have you arrested, and a call about a debt you don't recognize is a big warning sign. Hang up, then ask for the debt details in writing and check with the company you supposedly owe, using a phone number you look up yourself.
Almost always fake. Stop, then check by calling a number you already have.
Also searched as: debt collector, collection agency, capital recovery, owe a debt, payday loan debt, phantom debt, wage garnishment, lawsuit threat
Draft: we're still checking this page. The quotes below are word for word from their sources.
What to do
On the phone right now?
- Stop. Hang up or close the message. Don't tap anything.
- Check. Call a number you already have, like the one on your card or bill.
- Talk to someone you trust before you pay anyone.
If anyone is in danger right now, call 911.
If you already paid
- Call the company you paid through right away: your bank, card company, gift card company, or the wire or Zelle service. Ask them to stop or reverse the payment.
- Call the Justice Department's National Elder Fraud Hotline at 1-833-372-8311, Monday to Friday, 10 a.m. to 6 p.m. Eastern.
- Report it at ReportFraud.ftc.gov. If it happened online, report it at IC3.gov too.
General information, not legal or financial advice. If you've lost money, contact your bank and report it.
How it works
1 They reach you by
- Phone call
- Text message
- Letter or postcard
- Website
2 They pretend to be
- Police or government
- Someone else
3 They ask for
- Money
- Gift cards
- Wire or Zelle
- Personal details
- Tap a link
What it can look like
Example pattern, not a real message
Pretends you owe a debt. What gives it away:
- Pay with gift cards
- Send a wire or Zelle
- Give your ID numbers
Warning signs
- They tell you to buy gift cards and read them the numbers. No real agency or company asks to be paid that way.
- They push you to send a wire transfer or Zelle payment. That money is very hard to get back.
- They contacted you, then ask for your Social Security, Medicare or bank numbers.
- They want you to use their link or their phone number. Look up the real website or number yourself.
- They say you must pay right now or something bad will happen. Real organizations give you time to check.
Why we say this
Fake and Abusive Debt Collectors
The FTC explains how to tell a fake debt collector from a real one. It lists the warning signs, says how to ask for proof of the debt, and says where to report the call. The date is the page's last-updated date.
Not everyone who calls and says you owe a debt is a real debt collector who is collecting a real debt. Some are scammers who are just trying to take your money.
3 more quotes from this source
Either when they first communicate with you or within 5 days of the first contact, debt collectors must tell you information about their company and the debt.
Did the debt collector threaten to arrest you, suspend your driver’s license, or call your employer? Hang up and report them.
Once the collection company gets the letter, it must stop trying to collect the debt until it sends you written verification of the debt, like a copy of the original bill for the amount you owe.
FTC Action Leads to Court Order Halting Phantom Debt Collection Scheme That Took Millions from Consumers and Threatened Consumers’ Credit, Homes, and Employment
The FTC describes a scheme that sent fake collection letters and made calls about debts that never existed. The scammers used real personal details to look believable, and their threats grew with each follow-up call.
Debt collectors working for the scheme’s operators and their affiliated companies have sent consumers deceptive warning and collection letters or called them directly, claiming that consumers owed a debt of some kind and threatening legal action, wage garnishment, negative impacts to consumers’ credit, and even arrest if they don’t pay.
2 more quotes from this source
The complaint notes that the letters sent by the operators often contain a wealth of sensitive personal information about the consumer, including the last four digits of their Social Security number, leading consumers to believe the letter may be legitimate.
In follow-up calls, the threats increase, with collectors falsely telling consumers that they have defrauded a financial institution, could be arrested at their workplace, or that their homes could be seized if they do not settle, according to the complaint.
FTC Takes Action Against Phantom Debt Collector That Collected Millions In Bogus Debt From Consumers
The FTC describes a real case. A debt collector called people out of the blue, threatened jail and lawsuits, and pushed them to pay debts that didn't exist. A court halted the company's operations.
The company’s collectors call consumers out of the blue and threaten them with arrest, wage garnishment, and lawsuits if they don’t pay a supposed debt.
3 more quotes from this source
The company’s calls to consumers can be incessant, with some receiving calls multiple times a day, leaving voicemails saying to call about an urgent legal matter. When consumers answer, they’re told that, unless they pay the bogus debts on that phone call using a credit or debit card, they’ll face legal peril.
In other instances, according to the complaint, GCI calls consumers’ family members, making similar threats of legal action, and those calls have continued even after the company has been in contact with the consumer from whom they are seeking to collect the bogus debt.
The company’s representatives regularly fail to identify themselves as debt collectors, which is required by the Fair Debt Collection Practices Act (FDCPA), and often have or claim to have sensitive personal information that they use to convince consumers that the demands for money are legitimate.