Debt Collection Scam – A Case Study!

Fraudulent debt collectors are masters of deceit. They trick unsuspecting individuals by demanding immediate payment on false debts. Mr. Henderson became a victim of a debt collection scam. He was much like millions of others who face the constant issue of debt in Australia. For him, a debt collection letter in the mail was not an uncommon occurrence. But this time, something did not seem right. The letter was from a debt collector who said that he owed $2,000 to the bank. Though his first instinct was to immediately figure out a way to pay the debt, he hesitated because the letter seemed suspicious. The loan that it said he failed to pay was one that he was sure that he successfully paid, in full,three years ago. Because he had heard of a debt collection scam that defrauded an unsuspecting citizen in his area of a colossal amount of money, he immediately took action to find out the truth about this seemingly false debt.

Proved that the loan was paid in full.

Because he was pretty sure he had paid this loan, he had courage to call and find out what was happening. The first person he called was an accountant friend. His friend made it clear that if it was true that he had paid this loan, he needed to find his payment documentation to prove full payment of the loan. In his effort to find proof of payment, he searched every corner of his house for all of the statements and receipts, hoping to absolving himself of this stressful and embarrassing allegation of unpaid debt. Throughout this time consuming process, the persistent annoying debt collection calls kept coming.

Investigated the debt collector.

His decision to check the validity of the debt collectorrevealed a startling discovery. After phoning a government office that deals with fraud and crime prevention, he was advised to investigate the validity of the debt collecting business that insisted on debt repayment. Since he was told that lenders and debt collection businesses in Australia are required to become a member of EDR(External Dispute Resolution) by registering with ASIC (Australian Securities and Investments Commission), he decided to check if the debt collector was registered. After making a couple of more phone calls, he soon discovered that the debt collection business was missing two vital points of credibility. Not only was it not registered with ASIC, it was not even a legal business in Australia.

Reported the scam to the authorities.

Armed with all of the evidence about the fraudulent debt collection company, he immediately filed a complaint with ASIC. The time it took him to gather all of the documentation was time well spent. Though the calls did not immediately cease, in the end, lodging an official complaint is what eventually ended his debt collection scam nightmare. Clearly, the key to overcoming a suspected debt collection scam is to do your best to remain calm while gathering all documentation, investigating the debt collector and reporting the scam to the authorities.

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No person should rely on the contents of this publication without first obtaining advice from a qualified professional person. This publication is sold on the terms and understanding that (1) the authors, consultants and editors are not responsible for the results of any actions taken on the basis of information in this publication,nor for any error in or omission from this publication; and(2) the publisher is not engaged in rendering legal, accounting, professional or other advice or services. The publisher, and the authors, consultants and editors, expressly disclaim all and any liability and responsibility to any person, wether a purchaser or reader of this publication or not, in respect of anything, and of the consequences of anything, done or omitted to be done by any such person in reliance, whether wholly or partially, upon the whole or any part of the contents of this publication. Without limiting the generality of the above, no author, consultant or editor shall have any responsibility for any act or omission of any other author, consultant or editor.



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