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Dealing with Debt Collectors When You Don't Owe Anything

By Beecher Tuttle
TMCnet Contributor

The Federal Trade Commission received more than 140,000 complaints about third-party and in-house debt collectors in 2010. The industry's propensity for immoral and sometimes illegal collection tactics led the federal government to create the Consumer Financial Protection Bureau, a new agency charged with the task of stemming debt collection abuse.

One of the many issues that the bureau will need to tackle is how to stop debt collectors from harassing people who don't even owe money in the first place.

George Gombossy at Foothills Media Group points out that the sluggish economy has given debt collectors new business, but they are not always calling the right people.

Gombossy references stories of friends and colleagues who get dozens of calls a week from various creditors looking for someone who doesn't even live there. Unfortunately, all creditors have the same contact information, so the calls won't stop even if you explain the situation to one of the parties.

In addition, some of today's collectors will even pound out calls to those who might know the debtor in question, if only to find another avenue to reach them.

So what do you do now? The Connecticut State Banking Department and the Connecticut Consumer Protection Department advised Gombossy to identify the party and file a complaint with their state agency. Another option would be to find out who the collection agency is looking for and pass along their information if you have it.

"That is exactly when I did when I was getting numerous calls a week looking for someone who had listed me (without my permission) and my home number on their loan forms as the person to call in an emergency," Gombossy said. "I did a little detective work, found the debtor’s cell number, and turned it over with relish to the debt collectors."

If this doesn't work, you may need to consider losing your landline and moving to a VoIP system, he suggests.

Unfortunately, phone calls can just be the start. Collectors now use social media tools to contact people and have been known to file suit against the wrong parties on certain occasions.

The Consumer Financial Protection Bureau, which opened on July 21, may help slow this trend.

Beecher Tuttle is a TMCnet contributor. He has extensive experience writing and editing for print publications and online news websites. He has specialized in a variety of industries, including health care technology, politics and education. To read more of his articles, please visit his columnist page.

Edited by Rich Steeves