Yesterday the Bureau of Consumer Financial Protection (BCFP or Bureau) posted advice to consumers regarding how to tell the difference between a legitimate debt collector and a scammer. This is important, and I support all efforts to make this distinction. The problem is, the advice and the law don't exactly match up.
Another insideARM article published today highlights two recent court cases that address the beginning of an interaction between a debt collector and a consumer, and describes the gauntlet created by the Fair Debt Collection Practices Act (FDCPA) prohibition against communicating with a third party about a person's debt. (I suggest readers check out that one first, for background, then follow the link at the end back to this one.)
While much of the Bureau's advice is good, it makes no mention of the collector’s responsiblity to confirm they are speaking with the "right party" before providing any information. This is misleading and, in my opinion, it causes confusion for consumers and an untenable situation for creditors and their legitimate collectors. The following are among the listed warning signs of debt collection scams:
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