‘Beyond the pale’: Atlanta ‘phantom debt collector’ harassed people into paying him debts they didn’t owe — here’s how to protect yourself from being ‘violated’ by shady professionals

“Using a playbook of intimidation and threats of jail time to coerce consumers into paying debts that they don’t owe is beyond the pale,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection in the same press release. “The FTC will not hesitate to act against phantom debt collectors to shut down their operations.”

Knowing your rights

The Consumer Financial Protection Bureau says the Fair Debt Collection Practices Act prevents debt collection companies from contacting you during certain hours. They are forbidden from abusing, harassing or making misleading statements to individuals who owe debts.

As an example, a debt collector is not allowed to call or contact you repeatedly, especially with the intention of threatening or annoying you. Debt collectors are required to identify themselves and can’t call before 8 a.m. or after 9 p.m.

If you're on the phone with a debt collector or have received a letter, you have a right to know how much you supposedly owe and what the debt is for. You can also dispute the debt or verify whether the debt is actually yours.

Even if the debt is legitimate, you still have a right to take some space and ask the debt collector to stop contacting you. That doesn’t mean you don’t owe the debt, though, they’ll just take another legal approach.

How to spot a shady debt collector

A major red flag is if a debt collector refuses to tell you the name of the lender you allegedly owe, or if the collector is vague about their own identity or the amount owed. Get as much information as you can in writing to ensure the claim is real. If someone calls you and refuses to provide written documentation, then they’re most likely a scammer.

Remember, you have the right to ask the debt collector for information about the original lender, assuming the debt was transferred to another company. If a person calls you saying that they are a collector and tries to threaten you or to confirm sensitive information (like your Social Security number), hang up and contact the alleged debt collection company yourself to see if it’s legitimate.