Press Releases
09/30/2020
AG Tong, FTC, State, and Federal Law Enforcement Partners Announce Nationwide Crackdown on Phantom and Abusive Debt Collection
(Hartford, CT) — Attorney General William Tong is encouraging consumers to know their rights and report abuse as part of a nationwide crackdown on corrupt debt collectors.
The initiative, called Operation Corrupt Collector, includes enforcement actions brought by the FTC, three federal partners, and partners from 16 different states against debt collectors engaged in these illegal practices.
“We need to hold corrupt debt collectors accountable for the serious stress and harm they cause Connecticut residents,” Attorney General Tong said. “Many of these collectors will call or send official looking notices to consumers saying they owe non-existent debts. Sadly, some people fall for these illegal scare tactics. Our office will continue fighting for to protect consumers against these corrupt collectors.”
“For many years, we’ve been working with our law enforcement partners to crack down on illegal and abusive debt collectors,” said Andrew Smith, Director of the FTC’s Bureau of Consumer Protection. “At a time when many are under financial stress, our coordinated actions today show that we’re continuing the fight against collectors who threaten people and try to collect debts they don’t owe.”
The operation includes five cases filed by the FTC, two cases filed by the Consumer Financial Protection Bureau and three criminal cases brought by the U.S. Department of Justice and U.S. Postal Inspection Service. States reporting actions as part of the operation include Arizona, California, Colorado, Connecticut, Florida, Idaho, Illinois, Indiana, Massachusetts, New Mexico, North Carolina, North Dakota, New York, Ohio, South Carolina, and Washington.
In addition to law enforcement actions, state and local consumer protection agencies across the country are joining the FTC in rolling out new information to help consumers know their rights when it comes to debt collection and what steps to take if they receive a call trying to collect on a debt that they do not recognize. The FTC has also created a new online dashboard with information about reports received from consumers on debts not owed and abusive and threatening collection practices. So far in 2020, the FTC’s Consumer Sentinel Network has received more than 85,000 reports from consumers related to debt collection, and nearly 45 percent of those were related to debts the consumer did not owe or abusive and threatening practices.
In the last year, Connecticut residents have reported being called and harassed by corrupt debt collectors and more than 30 complaints have been filed with the Office of the Attorney General.
A Somers man reported that he was called at his place of employment by a collector who had his address, social security number and date of birth. The collector told the man they were going to take him to court unless he paid more than $2,000 that he allegedly owed to them.
A New London woman also reported being called by a fraudulent collector who said she owed more than $500 on a payday loan she’d never taken out.
If you receive a call you believe to be fraudulent:
• Check your records to determine whether you owe the debt. If you have no record of the debt, do not make a payment or follow the caller’s instructions until you receive proof of the debt.
• If you have provided banking information to the caller, alert your bank that your account may have been compromised. Also, consider putting a fraud alert or security freeze on your credit reports through the three credit reporting agencies.
• Do not confirm or provide additional personal information to a caller until you verify with the Department of Banking that the debt collector is licensed to operate in Connecticut. If the caller is licensed, report any abusive behavior.
• Carefully review copies of your credit reports and look for fraudulent activity.
Consumers may check the license of a debt collector, or make a complaint, by contacting the Department of Banking Consumer Affairs Division at (860) 240-8170, or toll-free at 1-800-731-8225, or online at www.ct.gov/dob.
Consumers who believe they have been a victim of debt collection scam also may contact the Office of the Attorney General, Consumer Inquiries, at 860-808-5318, or e-mail attorney.general@ct.gov. Complaints can be filed at https://www.dir.ct.gov/ag/complaint/
CONTACT FOR CONSUMERS:
Consumer Response Center
877-382-4357
CONTACT FOR NEWS MEDIA:
Jay Mayfield
FTC Office of Public Affairs
202-326-2656
- Twitter: @AGWilliamTong
- Facebook: CT Attorney General
Media Contact:
Elizabeth Benton
elizabeth.benton@ct.gov
Consumer Inquiries:
860-808-5318
attorney.general@ct.gov