Imagine getting a call out of the blue, and the caller insists you owe money and threatens that you’ll be arrested if you don’t pay immediately. You have no idea what they’re talking about. What should you do?
The Federal Trade Commission (FTC) reports that Global Circulation, Inc. (operating under names like Consumer Impact Recovery and Total Mediation Solutions) used illegal threats like this to scam thousands of people into paying debts they didn’t owe, totaling up to $9.6 million. As part of a settlement with the FTC, GCI will be banned from engaging in debt collection activities.
Here’s what you need to know:
Debt collectors cannot harass, lie, or treat you unfairly.
If you receive a call from a debt collector:
- Know that you cannot be arrested or jailed for failing to pay a bill. There is a legal process for wage garnishment to settle debts. If the person contacting you says otherwise, it’s a warning sign that they may not be legitimate.
- Before agreeing to pay anything, always ask for “verification” to ensure you actually owe the debt and that the amount is correct. If you still don’t recognize the debt — or if the amount seems wrong — you can dispute it by writing to the debt collector and requesting verification.
Remember, you have rights. If you feel the call is fraudulent or unfair, you have every right to question the legitimacy of the claim and take action to protect yourself.
