We’ve heard it before: A debt collection company engaged in a “phantom” debt scheme in which they try to entice unsuspecting individuals into paying debts they don’t actually owe. While federal regulators have cracked down on these unscrupulous organizations in the past, they are now turning their attention to the companies providing information on these supposed debts. To that end, the Federal Trade Commission today ordered one such data company to pay $4.1 million. [More]
phantom debt
Feds Shut Down Debt Collector That Allegedly Collected $2.1M In Unowed Debts
By 8.31.17
Once again, as part of its ongoing efforts to crack down on unscrupulous debt collectors, the Federal Trade Commission has accused a North Carolina company of running a “phantom” debt collection scheme that went after people for money that they did not actually owe. [More]
Illegal Debt Collectors Prey On Victims’ Doubts To Collect Money They Don’t Owe
By 2.10.17
For years, Consumerist has written about unscrupulous debt collectors that have attempted — sometimes successfully — to collect thousands of dollars from consumers who don’t actually owe a debt. This type of scheme is apparently alive and well in Illinois, where investigators say the ploy is one of the most popular for alleged con artists preying on residents, prompting the state’s Attorney General to file suit against at least one such operation. [More]
What Is Zombie Debt, And Why Won’t It Just Stay Dead?
By 6.7.16
John Oliver made a huge splash this week when, to prove a point on his show, he purchased $15 million worth of medical debt for $60,000… and then promptly forgave it all. A lot of that debt was “zombie debt,” which, like its namesake, keeps coming back from the dead to bother people who would much rather be left alone and unbitten. [More]
Robocalling Phantom Debt Collector Accused Of Harassing, Defrauding Consumers
By 4.8.15
People hate debt collectors, perhaps as much as, if not more than, they despise robocalls from telemarketers. And phantom debt collectors — those who attempt to collect debts that aren’t owed to them, if at all — are among the worst of the bunch. So when you combine the automated recorded messages of robocalls with the incessant harassment of phantom debt collectors, you create a particularly loathsome Frankenstein’s monster. [More]
