There are Rules Governing Debt Collectors

Debtor collectors are not allowed to call you before 8 am or after 9 pm (your time zone, not the caller’s).  They cannot yell, swear, use crude language or threaten you in any way or do anything else that could be seen as harassment.  Nor can they threaten to do something that they are not legal allowed to do – such as come to your home and take your property (without the appropriate court order).  The FDCPA is a federal law that limits what debt collectors can do.

Fraud, Identity Theft, Phantom Debt and Others

According to Consumer Sentinel’s 2018 Data Book, published February, 2019, has consumers complaints about: fraud, identity theft and other consumer protection topics.  Reporting agencies received about 608,000 complaints from consumers about debt collectors. Of those, more than 40 percent concerned efforts to collect “phantom debt” – debts which consumers say they don’t owe. If you believe you are being pursued for a debt you don’t owe, the FDCPA allows you to request verification of the debt.

Ask for Verification and Keep Records

You have a right to request the collecting agency’s name, physical address and phone number.  Always ask for a verification letter with details. Keep records of all contacts (date, time, name of caller) because this information will help you later if the debt continues to be an issue.

Never Give Out Your Personal Information

If the collector requests personal information such as your social security number or bank account number – never provide it.  Instead, request written documentation of the debt. If they start to threaten you with arrest or harm, write down the Caller ID number, and ask for the person’s name and report them to the Consumer Financial Protection Bureau and/or the FTC.  But, be aware that many of these sleazy types are ‘spoofing’ legitimate phone numbers for law firms and government agencies.

Global Asset Financial Services Group LLC

child care creditLast week, a federal court shut down one alleged phantom debt collection scheme at the request of the Federal Trade Commission. The operation, called Global Asset Financial Services Group LLC was accused of “falsely claiming to be attorneys or affiliated with attorneys to pressure consumers into making payments on debts they did not owe, and threatening to take legal action against consumers if they did not pay. The group includes 10 companies and six individuals as proposed defendants: GAFS Group, LLC; Regional Asset Maintenance, LLC; 10D Holdings, Inc.; Trans America Consumer Solutions, LLC; Midwestern Alliance, LLC; LLI Business Innovations, LLC; TACS I, LLC; TACS II, LLC; TACS III, LLC; Cedar Rose Holdings & Development, Inc.; and their principals Ankh Ali, Aziza Ali, Kenneth Moody, David Carr, Jeremy Scinta, and Omar Hussain.

Midwestern Alliance

According to the FTC “One of the companies behind the operation, Midwestern Alliance, is a debt broker that allegedly bought, sold, and placed fake debt portfolios that it obtained from former payday loan generator Joel Tucker even after consumers said they did not recognize the debt or had already paid it,” news release


Everyone will agree that we are responsible for our legitimate debts.  If we cannot or will not pay, then somebody has to help collect these debts. But shady debt collectors will go far beyond what’s allowed by law.  Every day I hear from consumers who are harassed and threatened by these con-artists.  Their lives, jobs and sanity are affected by this creeps who lie about the debt or the law governing their “right” to collect the debt.

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Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys. *Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*