Debt Collection and Mistaken Identity It may seem like a stretch, but debt collectors routinely go after the wrong person and wreak havoc on their personal finances. Given that original creditors often sell old debt to debt buyers, who may then sell it again, it's no wonder that misinformation creeps into old files. Even when that doesn't happen, debt collectors often use a "close enough" approach, trying to collect what they can from people who have similar names to those who owe money, or who may currently live at an address or have the phone number of those who owe money. The result? People who might not owe a dime may find that their credit history is marred, or worse, have their bank accounts frozen or wages garnished. If you've been the victim of this all-too-common occurrence, there are common sense steps you should take. First, you should ask for verification of when and to whom the debt was incurred, as well as other documentation. Second, you should dispute the debt in writing, and explain why the debt collector has you confused with another person. Include a "cease and desist" letter, telling them that they may not contact you again about the debt. When you send these letters, you should do so via certified mail, with return receipt requested. You should also keep a logbook, noting the dates and times of the phone calls, along with a summary of what was said. If you receive voicemail messages from a Debt Collection agency, save them. Similarly, save any written communication you may receive, including the outer envelope.
Finally, it's important to check your credit reports. The practice of a debt collection agency going after the wrong person is known as "tagging," and if you've been tagged, chances are the debt collector has submitted a report to the credit reporting agencies. If there is erroneous information about the debt, instruct the debt collection agency to remove the information. You should also contact the credit reporting agencies directly and inform them about the inaccurate information. Then, keep checking your credit reports to ensure that the false information is removed.
It can be frustrating to deal with debt collection agencies - especially when the debt isn't one you incurred - but it's important to stand your ground. Moreover, you should be aware that the federal Fair Debt Collection Practices Act protects your rights - even if you aren't the debtor. If a debt collection agency steps over the line into illegal practices, you have recourse. When that happens, your best bet is to have a fair debt attorney by your side. Hiring an attorney shouldn't cost you any money, as the FDCPA mandates that debt collection agencies found in violation of the law must pay your attorney fees. Often, in the case of mistaken identity, a debt collection agency may settle with a consumer rather than go through the expense of going to court. The bottom line? If you've been tagged, make it clear that the debt collection agency has the wrong person. Tell them so in writing, but cover your bases by keeping records of all communications. The law is on your side, so make it work for you. If you don't, you may find that the debt collection agency has a strangle hold on your credit reports, your bank account, and even your paycheck.