Three Types of Scams Targeting Those in Debt

Posted on in Debt Relief

Illinois tax lawyer, Illinois bankruptcy lawyerTelephone scams are an increasingly common problem in Illinois. Scammers employ persuasive tactics and advanced techniques that can ensnare even the savviest consumers, and if you are dealing with debts and IRS issues, you are even more likely to be susceptible. The following highlights three types of the latest scams currently wreaking havoc, and how you can avoid being a victim.

1. Credit Collection Scams

The Consumer Financial Protection Bureau warns against scammers posing as debt collection companies, who may attempt to solicit payments or personal information from you for the purpose of accessing your accounts or stealing your identity. These fraudsters may disguise the number that appears on your caller I.D. in an attempt to fool you into believing they are legitimate. Warning signs that these calls are a scam include:

  • They ask you to provide your credit card or Social Security number, or other types of personal information:
  • They threaten to have you arrested or take other legal actions not permitted by reputable credit agencies;
  • They demand payment immediately at the time of the call, and will not provide a callback number where they can be reached.

If you suspect a credit collection scam, hang up immediately. If it is an actual collection call, they will call back and leave a message or notify you by mail.

2. IRS Tax Scams

The Internal Revenue Service (IRS) warns that phone calls from scammers who impersonate IRS agents have robbed thousands of consumers of their hard earned money. They may disguise their number to look like the call is coming from the IRS and use many of the same tactics as phony debt collectors, including:

  • Telling you a warrant has been issued for your arrest;
  • Demanding immediate payment via a wire transfer or prepaid credit card;
  • Demanding you pay a certain amount without providing details about the debt or offering you the opportunity to appeal.

None of these are practices the IRS follows when collecting tax debts. If you do owe back taxes, you will receive a detailed notice in the mail

3. Debt Relief Scams

The Federal Trade Commission warns consumers to beware of debt relief scams, where companies offer to settle or negotiate your loans, mortgage, or credit card balances for a fee. While some may be legitimate businesses, others are only out to rob you or steal your identity. Tactics they use include:

  • Using automated or ‘robo calls’ to initially make contact;
  • Charging large upfront fees to reduce or eliminate payments;
  • Claiming they can repair your credit report.

Other than making arrangements yourself with a loan or credit card company, the only legitimate way to reduce debt or avoid foreclosures or repossessions is by speaking with a bankruptcy attorney.

Contact Our Tinley Park Bankruptcy and Debt Relief Attorney Today

If you are struggling with consumer or tax debts, contact the Law Offices Of Eric G. Zelazny to see how we can help. We offer professional legal guidance you can trust from a dedicated Tinley Park bankruptcy attorney with over 20 years experience in helping individuals and small business owners. Contact our office online and request a free consultation today.

 

Sources:

https://www.irs.gov/uac/tax-scams-consumer-alerts

https://www.ftc.gov/news-events/media-resources/consumer-finance/debt-relief-credit-repair-scams

https://www.consumerfinance.gov/ask-cfpb/how-can-i-verify-whether-or-not-a-debt-collector-is-legitimate-en-1699/

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