Wednesday, January 26, 2011

Debt collectors and scams

Kansas Attorney General Derek Schmidt released a statement regarding a new scam. According to his statement, a company called, "National Credit Solutions [is] purporting to be a debt collection agency. Most of the consumers who have been contacted have been contacted either by mail or by telephone. National Credit Solutions says it is contacting the consumers to collect a late fee owed by the consumer to Hollywood Video. The organization tells the consumer that the late fee was never paid and that Hollywood Video has turned the account over to National Credit Solutions for collection, and increasing the amount due. The organization then tells the consumer that the amount must be paid immediately or it will be reported on the consumer's credit report. National Credit Solutions often will also attempt to bargain with the consumer to get them to pay on the spot, accepting less than the amount to ensure payment." If you have been contacted, please do not send money, do not let anyone pressure you into sending money, and use the resources in this post:

See Attorney General Derek Schmidt's full statement at:

The Federal Fair Debt Collection Practices Act:

The Federal Trade Commission's (FTC) guide for steps you can take if you have been scammed:

Kansas law KSA 50-623 et seq. regards Kansas consumer protection

Kansas law KSA 50-634 regards remedies and debt collectors

Where to file a consumer protection complaint with the Attorney General:

Where to file a complaint at the FTC:

Consumer Protection video from the FTC:

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