This may be true when they say “no good deed stands without punishment”, as new adopted regulations designed to protect consumers may lead to the opposite result if you are not careful! The new rules on debt collection practices recently adopted by the Consumer Financial Protection Bureau can leave consumers more vulnerable to online scams. Here’s what’s new and tips on how you can help protect yourself.
The new rules actually make clear how debt collectors can communicate with you, including what information they are required to provide at the beginning of debt collection, your debt collection rights and how you can exercise those rights. And if that sounds a little confusing, you might be right. And fraudsters, as always, look at this period of transition to the new rules as an opportunity to deceive victims, who will not know better.
These are the two things that have changed the way debt collectors can communicate with you:
- Debt collectors can now send unsolicited emails, text messages and social media messages. You can revoke your consent to any or all of these communication channels.
- Debt collection can now “connect” you on social media. However, they must identify themselves as debt collectors and disclose their intent if the purpose of membership with you is to ultimately use this platform and direct connection to send messages directly in pursuit of debt.
While debt collectors have not previously been banned from contacting consumers via text or social media, the amended rules are intended to provide “Clear rules of the road” Now and in the future, the CFPB said.
Dealing with debt collectors can be a difficult time for nearly 70 million Americans who are estimated to have debt in collection. This staggering number translates to almost one in three adults with a credit report reviewed during the epidemic, according to an analysis by the Municipal Institute.
Even those without credit worries should be careful. Scammers are already using unwanted electronic communications to commit fraud, using debt collection as a pretext. Enabling debt collectors to send emails, text messages and use social media to connect with consumers gives criminals a new way to try to trick people into paying them money for alleged debts.
Here’s what you can do to protect yourself.
First, know your rights. God Fair Debt Collection Procedures Act He is very specific about what debt levels can and cannot do.
Find out who you are dealing with. Ask for the collector’s name, company name and address and phone number. Legitimate collectors will provide this information.
Be especially vigilant about who you let access your social networks.
Do not click on any hyperlinks or download any attachments from DM messages, texts or emails claiming to have come from debt collectors on social networks. All of these rules for preventing fraud and identity theft still apply, even if it is a debt collection email. You should research the name of the company that sent you the email to determine first if this is a legitimate debt collection.
If you receive fraudulent emails about a debt you do not owe, report it. You can report illegal debt collection practices to the CFPB and your country’s Attorney General’s Office. Many countries have their own debt collection laws, so contacting state authorities can be a good idea. Documentation of any violation of the law by the amount of the debts. While this will not make legitimate debts disappear, it can help prevent further misconduct and even give you a reason to claim the amount of debts.
It is also advisable to contact a major credit reporting agency. Tell them that fake charges have targeted you. Ask them to place a fraud alert on your credit report. Or, even simpler, use a third-party identity theft and credit monitoring service to keep an eye on your credit 24/7. It is much less expensive, both in time and money, than to fall victim to a cheater.