Arkansas Attorney General Dustin McDaniel

LITTLE ROCK – In such tough economic times, many people are struggling to make ends meet and finding themselves behind on mortgage, credit and bill payments. Unfortunately for these consumers, calls from bill collectors have become an unwelcomed addition to their daily routine. But what happens if you get a phone call from a debt collector for a debt you don't owe or don't remember incurring? Recently, Arkansas consumers have been the recipients of phone calls from a phony debt collection operation, and today, Attorney General Dustin McDaniel issued this consumer alert to warn Arkansans about this new scam.

From the complaints received by the Public Protection Department, investigators know that the scam artist calls the consumer, and informs him that he has an outstanding debt. Using a threatening manner, the caller demands that the consumer wire money immediately or face arrest. Some frightened consumers, especially elderly consumers, may have thought that they had forgotten owing the bill, and in fear of the threatened consequences, sent the money. The attorney general has reports that some victims in other states have turned over a lot of their hard earned money to pay debts they do not owe.

"Consumers who find themselves in hard financial times, deserve our protection and assistance," said McDaniel. "They certainly do not deserve to be targets of a scam that aims to cheat them out of their hard earned money."

For various reasons, some people fail to meet their financial obligations; however, every person is protected by the federal Fair Debt Collection Practices Act. Congress passed this act to protect consumers from harassment by debt collectors. Personal, family, and household debts are covered under the act. This includes money owed for the purchase of an automobile, for medical care, or for charge accounts.

If you get a call from a debt collector, and you are unsure whether the caller or his claim are legit, keep in mind that you have rights and collection agencies are governed by the following rules:

A debt collector may only contact a person between the hours of 8 a.m. and 9 p.m. Debt collectors may not contact the consumer at his job if the debt collector is aware that the employer prohibits personal calls.

A debt collector can discuss your debt only with your attorney, a credit bureau, the creditor, and the creditor's lawyer. However, the debt collector can contact other people to find out where the debtor lives or works.

Debt collectors may not harass, intimidate, threaten, or embarrass you.

Debt collectors may not make false or misleading statements, such as falsely associating themselves with a government office or credit bureau. They may not use misleading or false threats of imprisonment or criminal charges.

If you believe a debt collector is in violation of these rules under the Fair Debt Collection Practices Act, be sure to document any communication you have with the debt collector and file a report with the Federal Trade Commission, http://www.ftc.gov/, or the Arkansas State Board of Collection Agencies at (501) 376-9814. If you believe you have been contacted by a phony debt collector, please contact the Public Protection Department of the Attorney General's Office at 501-682-2341 or toll-free statewide, at 800-482-8982.