Because creditors often use third-party collections agencies to pursue payment for delinquent accounts, it’s not unusual to get phone calls from companies you don’t recognize. However, many unscrupulous scam artists will pose as legitimate collections agencies, giving themselves official-sounding names and making serious threats in an attempt to get you to pay. If you receive a phone call from an agency trying to collect on a credit card debt or other overdue accounts, be on the lookout for these signs of a scam.

3 Common Signs of Collections Agency Scams

1. The Caller Demands Full Payment at Once

Legitimate debt collections agencies are usually willing to work with you and establish a payment plan, so be suspicious if the caller demands that you pay the debt in full. Some will even threaten you with jail unless they receive the amount they claim within a few days.

2. You Don’t Recognize the Debt

Some businesses make money buying old credit card debt, so the account in question could be several years old. However, if you have no memory of the debt, the caller could be scamming you. Legitimate creditors are required to provide proof of the debt on demand, including the original lender, the amount of the debt, and your account number.

3. They Demand Untraceable Payment Methods

Real collections agencies will accept personal checks, credit cards, or debit cards as payment, but scam artists will usually request untraceable methods. Wire transfers are very popular with criminals, along with complicated transactions involving prepaid visa cards. If someone claiming to be a debt collector demands payment via one of these methods, report the call to the FTC and your state attorney general’s office.

If you’re struggling with credit card debt or being harassed by legitimate creditors, the bankruptcy attorneys at Padgett & Robertson, Attorneys at Law in Mobile will help you reclaim your life. Their team has over 35 years’ experience representing borrowers throughout Southern Alabama, and have the expertise to put you back on the path to financial solvency. Visit their website or Facebook to learn more about how bankruptcy can help you resolve credit card debt and other accounts, or call (251) 342-0264 to schedule a free consultation.

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