Collection Calls Could Mean Identity Theft

[David A. Szwak]

Ask Dr. Don By Don Taylor, Ph.D., CFA, Bankrate.com
http://www.bankrate.com/brm/news/DrDon/ ... dtype=pfin

Collection calls could mean identity theft


Dear Dr. Don,
For two months now, we have been receiving prerecorded phone calls from Allied Interstate Inc. that indicate that the call is of a personal business matter. "Due to the sensitive nature of this call, no further information" will be given. I have found that they are a licensed consumer collection agency. I do not think I owe a penny to anybody and am scared to death that this is some kind of scam. Can you suggest the appropriate course for me to take? I do not want to be a victim. Please advise. Thanks.
-- Linda Livid
Dear Linda,
If you don't owe a penny to anybody and you have a consumer collection agency calling you to speak of a personal business matter, you should worry more about identity theft than about talking to the collection agency.

Rather then sticking your head in the sand, it's time to get proactive and find out what is prompting the calls. You don't have to deal with the collection agency; turn instead to the credit bureaus. If you have a delinquent account it's virtually certain to show up in your credit report from one or more of the three major credit bureaus, Equifax, Experian or TransUnion.

All three bureaus have fraud protection measures that allow consumers to put a fraud or security alert on their credit report, cautioning lenders to take steps to verify the identity of people applying for credit in your name. This measure is free to the consumer and you don't have to subscribe to a service to add a fraud alert to your credit report. Initiating a fraud or security alert also prompts the credit bureau to send you a free copy of your credit report. Bankrate.com's Guide to Managing Credit provides you with the contact information for the three major credit bureaus.

It may not be fraud or identity theft, it could be just a case of mistaken identity. If you recently moved and changed phone numbers, for example, the collection agency could be calling for the person that used to have your number. Deadbeats often have their phone disconnected, freeing up that number for the phone company to give out to someone moving into the area.

Under the provisions of the Fair Debt Collection Practices Act, you can make the collection calls stop just by requesting in writing that they stop. After that point the collection agency can only contact you for two reasons: either to let you know that they are dropping the matter or that they plan to pursue legal action against you. The Federal Trade Commission has a bulletin, Facts for Consumers -- Fair Debt Collection that explains your rights under the Act.

-- Posted: Sept. 20, 2004