What is a debt collection scam?
A debt collection scam is a type of fraud commonly used by unscrupulous debt collectors to try to collect money from people who do not actually owe a debt. In South Dakota, the Collection Defense Law outlines how debt collectors must conduct business in the state. The law also provides protections for consumers against fraudulent debt collection practices. A debt collection scam typically involves a scammer falsely claiming to be from a debt collection agency and demanding payment for an unpaid debt. Often times, the debt is not actually owed and the scammer is attempting to defraud the victim. In some cases, the scammer may even provide an account number to the victim and claim that the debt is due. In some cases, the scammer may threaten the victim with legal action or some other form of punishment if they do not pay. This is a violation of South Dakota’s laws, and a victim of such a scam should contact their state’s attorney general’s office immediately. Consumers should also be wary of debt collection agencies that offer to settle the debt for a lump-sum payment. The Collection Defense Law requires that debt collectors provide accurate information about the debt, including the amount owed and the company to which the debt is owed. If a debt collector fails to provide this information, then the consumer should be concerned that it may be a scam.
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