How To Know the Difference Between Legitimate Debt Collection Company and Scams?

Dealing with debt collection issues can be overwhelming, especially when you are unsure if the person contacting you is legitimate or a scammer. When an account becomes past due, your creditor may attempt to collect the amount owed or hire a debt collection agency. While there are several legitimate debt collection agencies in the industry, you should not overlook the chances that a scammer might try to take advantage of your debts.

Here are a few red flags indicating the difference between an alleged debt collector and a scammer:

A Scammer Will Falsely Threaten You 

Most scammers often use aggressive, over-the-top, blatant threats to collect money from the debtors. They threaten unsuspecting victims with jail time or lawsuits to hurry them to pay.

Whether the caller claims to work directly for the company you owe money to or a debt collector agency, you should never forget that the person is NOT ALLOWED to threaten you in any way.

So, if you receive a call for debt collection, and they mention prison, an arrest warrant, or other such threats, you should immediately realise that it is a scam.

A Scammer Will Demand Payment “Today”

A scammer often insists that the payment should be done “today.” To collect the amount at the earliest, a scammer will tell you that you will face a penalty if you don’t pay the money immediately, threaten to file a lawsuit, or make other threats.

While a professional debt collection agency will also strive to collect the payment at the first opportunity, they are forbidden to use threatening actions to collect debts.

A Scammer Will Contact You Before or After Working Hours

Check the time whenever you receive a call for debt collection. A professional debt collection agency is only allowed to contact you within the standard working hours duration. However, if you are already working with debt collection on a payment plan, they are only allowed to contact you during the specified hours in the document. A debt owner also has the right to limit the places of contact (for instance, restricting the debt collector to not contacting them at work).

A Scammer Will Not Accept Various Forms of Payment

Most professional collection agencies will be willing to accept any mode of payment. On the contrary, a scammer will always force you to use a specific method of payment, like only cash payment or an instant bank transfer.

A Scammer Will Withhold Information From You 

Remember that if the collector is not willing to provide you with the details of your debt, creditor, email address, or other relevant information, that’s a sure sign of a scam.

A legitimate debt collection company will always be willing to answer the questions about your debt, and the company and explain who they are and why they are calling.

About us

Are you having trouble collecting your debts and looking for a convenient way to handle your business debt collection? We are here to help! Taurus Collections (UK) Ltd. has straightforward techniques to help our clients with certain debt collection services. Our services include:

Use our Late Payment Calculator to compute your outstanding credit amount. Contact us at 01332 565 350 (Derby) or 0800 069 8777 or email us at Stay tuned on Facebook, Instagram, and Twitter.