Compiled by Zan Deery, Communications/Investigations
7/06/09
zan@spokane.bbb.org
800-356-1007 or 509-455-4200
www.bbb.org
Readers of these tips should take into consideration the importance of the practice in question and the total performance of a company.
For complete information and BBB reports, please visit
www.bbb.org
TIP NUMBER ONE
Consumer Recovery Associates Using Montana# 406-558-4621, Making Aggressive Collection Calls
Consumer Recovery Associates aka CRA
2697 Intl Pkwy Ste 270-4, Virginia Beach, VA 23452
and PO Box 2916, Virginia Beach, VA 23450
864-561-3177 Using: 406-558-4621
Since our BBB services the state of Montana, last week BBB received a call from a FL woman reporting that she has been receiving harassing collection calls for her niece’s debt that she has nothing to do with. The calls are using a 406#, which is the area code for Montana. She reported that the collection agency won’t reveal who they are, are rude, bullying and won’t stop calling even when asked.
These activities are in violation of the Fair Debt Collection Practices Act which is regulated by the Federal Trade Commission.
The Fair Debt Collection Practices Act requires that debt collectors treat those who have failed to repay their creditors in a fair manner. It prohibits abusive debt collection practices. The following debt collection practices are among those that are prohibited.
Debt Collectors may NOT:
*harass, oppress, abuse, or use threats of harm toward you or any third parties they contact;
*publish a list of consumers who refuse to pay their debts;
*Use obscene language or repeatedly use the telephone to annoy someone;
*Take or threaten to take your property unless this can be done legally.
They are also restricted in the statements they can make to debtors. They may NOT tell you that:
*you will be arrested if you do not pay your debt;
*they will seize, garnish, attach or sell your property or wages, unless the collection agency or creditor intends to do so and it is legal to do so;
*they will take actions, such as a lawsuit against you, when such action legally may not be taken, or when they do not intend to do so.
Finally, debt collectors may NOT:
*give false credit information about you to anyone;
*send you anything that looks like an official document from a court or government agency when it is not;
*use a false name.
A debt collector IS permitted to contact you in person, by mail, phone, telegram or fax. However, he or she may not contact you at inconvenient times or places (such as before 8 am or after 9 pm) unless you agree. They may not contact your place of work if the collector knows that your employer disapproves of such contacts. You should inform the collector accordingly, in writing, to cease such actions. Keep in mind that this does not resolve the debt.
BBB ADVICE
If you wish to report a collector for violating any aspect of the Act, please do so at: www.ftc.gov If you have an unresolved issue regarding a debt collector, you can file a complaint with BBB at: www.bbb.org You can also file a dual complaint with the attorney general’s office where the collector is located for resolve.
TIP NUMBER TWO
TAKING SURVEYS FOR $$: Know that the Surveyor is Legitimate before Taking!
Does this “take a survey” scenario ring a bell to you?
A Missoula, MT woman called stating that she received a letter from a random “Health and Human Resources” addressed to “Resident” with regards to participating in a survey. She contacted her local office of Health and Human Resources and they knew nothing about this random survey. The postcard had a name with a 800# to call. The letter stated that they have been contracted to conduct a survey in your area and that a rep would be in her area soon. The mailing stated that they can come to her home so she can take it, and if she completes the survey she will receive $30 cash. The mailing gives an OPT-OUT option where she can decline to take the survey if she so desired.
BBB ADVICE
There are a number of ways people are approached to take surveys: 1) randomly by phone, 2) door-to-door, 3) approached in a mall or shopping center, 4) online. Any way you look at it, taking a survey takes time. Also, some surveys require you to provide personal information about yourself and your lifestyle and the habits surrounding that lifestyle. That said, BBB advises people to KNOW that the survey you are taking is legitimate because the safety of your personal info could be in the hands of people you know nothing about. If you don’t know the person conducting the survey and who or what they represent, think twice about participating. If you are going to take a survey online, check out the company first before proceeding. Read all terms and conditions regarding the company and its offer before taking the survey.
If you have to pay to take a survey, consider it a red flag. There is no need for them to ask for financial info. Consider it a red flag if you have to provide sensitive information such as social security # and/or bank account #s or credit card #s. Most surveys are going to ask questions about your lifestyle and habits rather than ask you for sensitive information.
If you have taken a survey and suddenly are being billed for your participation or have been signed up without your knowledge to be part of a membership of some kind as a result of having taken the survey, dispute ASAP first with company. If you get nowhere, file with BBB at: www.bbb.org
TIP NUMBER THREE
LATEST “YOU CAN’T FOOL ME” PHONE SCAM
BBB wanted to share its latest phone scam scenario attempting to obtain personal info:
A consumer reported to BBB that they received a phone call from a “Federal Claims Bureau” telling her she had won a fortune. She was also given the following phone number 202-821-4749 to call to verify them with the Better Business Bureau.
BBB called the number and they answered “Better Business Bureau.” BBB identified itself to the scammer and the person hung up on her. BBB called back one more time and a man answered, “Hello.”
TIP NUMBER FOUR
LATEST ADVANCE FEE LOAN SCAM USES
WEB SITE WWW.DEBTPLUS.ORG FALSELY DISPLAYS BBB LOGO
A regional consumer contacted BBB to report that they received a call from the above mentioned scam. The person calling convinced the woman to wire an upfront fee of $750 to a Canadian location for a loan.
The woman reported that the scammers called themselves Debt Plus with a website of www.debtplus.org The scam web site has the BBB logo displayed on it.
BBB ADVICE ON ADVANCE FEE LOAN PITCHES
If any materials presented refer to BBB in any way, FIRST AND FOREMOST, check them out ASAP with BBB before going any further. Do not confirm or verify or give out any personal or sensitive info prior to research. Don’t agree or give any monies until you know exactly who you are dealing with. If you fall for this type of scam, you will most likely not see your money back.
The Better Business Bureau offers these tips for spotting an advance fee loan scam:
Pressure to act immediately. Advance fee loan scammers will try to get you to send or wire money (especially out of country) or give out personal information before you get any paperwork. Insist on receiving the necessary paperwork before deciding whether or not to apply for credit.
Lenders not interested in your credit history. Lenders who don’t care about your credit record or those who say no matter how bad your credit is we can promise you a loan. This type of disregard for your current situation should be cause for concern.
Ads that downplay bad credit and ads promising “fast money” or “guaranteed approval” often indicate a scam.
A loan that is offered by phone. According to the FTC, it is illegal for companies doing business in the U.S. by phone to promise a loan or ask you to pay for it before they deliver.
TIP NUMBER FIVE
POSTCARDS SENT RANDOMLY OFFERING TO BUY YOUR HOUSE
FORECLOSURE TIPS TO KEEP IN MIND
BBB had a local resident visit BBB with a postcard that offered to buy his house. He stated that he wanted to consult with an attorney first before going with the offer, which was a very smart decision, but did call the 800# on the postcard to hear the recorded pitch. He stated that the pitch seemed “too good to be true” and was happier to have received a Roster of BBB Accredited Attorneys with whom to consult prior to going with the offer!
BBB also suggests that you speak with your official lender and/or mortgage company before going with ANY outside third-party. BBB and the FTC warns homeowners to avoid foreclosure rescue businesses that:
* Guarantee to stop the foreclosure process -- no matter what your circumstances.
* Advise you not to contact your lender, lawyer, or credit or housing counselor.
* Collect a fee before providing any services.
* Accept payment only by cashier's check or wire transfer.
* Encourage you to lease your home so you can buy it back over time.
* Tell you to make your mortgage payments directly to their business, rather than to your lender.
* Advise you to transfer your property deed or title.
* Offer to buy your house for cash at a fixed price that is not set by the housing market at the time of sale.
* Offer to fill out paperwork for you.
* Pressure you to sign papers you haven't had a chance to read thoroughly or that you don't understand.