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Sherlock Holmes Would Be Proud: Foiling the Plot of a Financial Scammer
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November 21, 2024Our financial health counselors love what they do – guiding each family to improve their finances. We address a wide variety of topics such as debt, credit, homebuying, rental issues, cutting costs, and foreclosure prevention just to name a few. Occasionally, we also have the pleasure of foiling a scam. We just saved one client hundreds of dollars – here’s how we did it, and how you can be on the lookout for similar scams!
One of my clients called, stating he just committed a bi-weekly payment (with checking account access) to a debt collector who was otherwise going to sue him. This itself wasn’t abnormal, but it was strange that he didn’t have previous contact with the debt collector. The second red flag was the sense of urgency to “set up a payment plan now or we will sue you.” As due diligence, I asked the client some basic questions, but he was not able to answer them (the name of the debt collector, the total amount owed, what the debt was owed for). Fear of being sued made him act quickly.
These skipped steps by the debt collector were more red flags of a scam. I immediately counseled my client to work with his bank to close the checking account and open a new one with different numbers.
Then, we called the “debt collector” together to inquire about this debt. Their strong act of legitimacy collapsed after one question, “What is the name of your company?” We knew they were phony right then! “Who is the original creditor?” to which they answered, “We can’t tell you that.” Then I asked, “Are you a debt collector or an attorney?” to which they weakly replied, “we are not either, we are from ‘civil litigation.’” There is no such thing as “from civil litigation.” We knew with absolute certainty that this was a scam trying to rob my client of hundreds of dollars.
Here are the steps you can take if you receive a similar call or request. First, demand proof of the debt by mail (this fake company refused to do that). Second, get answers to crucial questions like “Who are you?”, “What is the debt for?”, and “How much do I owe?” Third, be familiar with the Fair Debt Collection Practices Act. If this were a legitimate debt collector, they would’ve broken the law in multiple ways, which was another tip-off that they were a fake!
If you or someone you know could benefit from Catholic Charities Financial Health Services, call (920) 272-8234 or visit https://catholiccharitiesgb.org/personal-finance to learn more.
Kory Krauss is the Financial Health Services Manager with Catholic Charities.
