Getting an unexpected call from someone demanding money can be frightening — especially when they claim you’ll be arrested if you don’t pay. But before you panic or hand over any money, it’s essential to understand your rights and how to spot a scam.
The Federal Trade Commission (FTC) recently took action against a company called Global Circulation, Inc. (GCI), which also operated under names like Consumer Impact Recovery and Total Mediation Solutions. According to the FTC, GCI tricked thousands of people into paying debts they didn’t owe — using illegal threats and deception to extract over $9.6 million from consumers.
Your Rights When Dealing With Debt Collectors
You Cannot Be Arrested for Owing Money
Despite what some fake debt collectors claim, you cannot be jailed for failing to pay a bill. Legal debt collection — like wage garnishment — requires a legal process. If someone threatens arrest, it’s a major red flag and could indicate a scam.
Always Ask for Validation Information
Before paying anything, you have the right to request validation information, including:
- Name and mailing address of the debt collector
- The name of the creditor
- The amount of money owed, including interest, fees, payments, and credits
- Your debt collection rights
The Fair Debt Collection Practices Act (FDCPA) & Other Helpful FAQs
The FDCPA makes it illegal for debt collectors to use abusive, unfair, or deceptive practices when they collect debts.
Click FTC Debt Collection FAQs for additional, helpful information about your rights.
Concerned About Abusive or Illegal Debt Collection Practices?
Debt can be difficult, but intimidation, deception, and illegal practices are never part of the legal process. By knowing your rights and staying alert, you can avoid falling for these high-pressure scams.
If you believe you’ve experienced unfair, abusive, deceptive, or otherwise illegal debt collection practices, reach out to Kehoe Law Firm, P.C. You can contact an attorney for a free, no-obligation evaluation of your legal options by sending us a message or emailing us at [email protected].
About Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors.
Our firm litigates securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle and product defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.
Kehoe Law Firm’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses.
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