4 sign to identify that the collection agency is a scam or genuine

Getting a debt collection call regarding the payment you never paid is a common thing. But what if you don’t recognize the person who is calling you or the debt he is talking about. So, before apologizing and promising any debt payment, think of another scenario: It's not your debt at all or might be it’s a spam call or it could be the case of “tagging” where the person follows the wrong person for the collection.

So, it is very important to ensure that the debt collection agency which is calling you is genuine. Here are five tricks to identify that the collection agency is a scam or genuine-

Ask questions

Debt collectors usually ask a lot of questions, whether it's real or a spam call. But here you should shift the conversation and ask a few of your own questions. You can ask them their name, company name, address, and phone number. A legit debt collection should answer all of them and a spammy will refuse to say or make some excuses. Some might also say we don’t have to but if they do either of them it’s a red flag because a debt collector is liable to provide you the basic details.

Receive confirmation letter

After the first phone call, a legit debt collection agency is liable to send you a written confirmation of the debt within five days. Many agencies prefer to send the notice first before calling. That confirmation letter along with the demand to pay includes various information which includes- Your own rights and also the information about the collection agency such as the company name, phone number, and mailing address.
If you haven’t received the agency confirmation it's a red flag. 

Send for verification of the debt

When the debt collector contacts you, you have 30 days to demand the proof regarding the debt in which you verify if the debt is real or not or if that debt belongs to you or not. If the person calling you is a legit debt collector you will get the verification. Avoid including any personal information in the letter and also ask for a return receipt so that you can have proper documentation. A debt collector has to pause all the attempts of collection until the debt is verified.
If the debt collector won't send any confirmation it's a red flag.

Check your credit report

Credit reports have all the current debts listed, along with the information of the debtor and your commitment to them. Debts that are not settled remain on your credit report for seven years. You have each of your three reports free every year. Along with debt you should also check the inquiry listed on your credit report, you will find that the collector claiming the debt has viewed your file.
So, if someone claims that you owe a debt and is not listed there then there might be the chances that-

1. It could be a scam.
2. It could be a case of mistaken identity.
3. It could be a real debt that is past the statute of limitations for collections (often three to six years, depending on the state where you live).

Also, make sure that just because a debt is there doesn't mean it can’t be the right person. Verify the details it could be the case of tagging. In “tagging” situations, sometimes collectors have been known to list the debt on an innocent third party’s credit report.

Before paying debt or getting involved, always ensure to look up for the agency online, you can check the review of the debt collection agency. A legit debt collection agency Like cedar financial services never practices any things which are beyond the laws and regulation. Being cautious saves you from getting involved in any debt and if the collection agency is legit you can find the tracks in their process of collection.