April 21, 2016 | dan Bogus debts, bogus collections April 21, 2016 by Christopher Koegel Assistant Director, Division of Financial Practices, FTC At the FTC, we sue abusive debt collectors and try to do right by people who’ve been harmed by unlawful practices. But we also try to protect people from being harmed in the first place. That’s exactly why I’m here: to warn you about debt collectors calling about debts that the FTC knows are bogus. The bogus debts supposedly are payday loans from these companies: USFastCash, 500FastCash, OneClickCash, Ameriloan, United Cash Loans, AdvantageCashServices, or StarCashProcessing. The companies are real, but if you’re hearing from anyone other than those companies, the debts are fake and you don’t need to pay. Sometimes, if they can’t collect money owed to them, companies sell lists of those debts to debt collectors. But, in this case, we know that didn’t happen. The company that processed and serviced loans from these companies told the FTC that it never sold any customer or account information to debt collectors. Their lawyer even filed alegal declaration saying that. Even so, we’ve still heard about abusive calls from debt collectors claiming to be collecting money owed to the companies listed above – and we already know that’s not true. But we also know that many of the people who have been called never even had a loan with those lenders in the first place – so the debts themselves also are bogus. What to do if you get a call from a debt collector who says you owe money to one of those companies? You have rights. Ask for avalidation notice, which says what you owe and to whom. After you get it, consider sending a letter saying that you don’t owe the debt. If you’re getting debt collection calls, check your free credit report atannualcreditreport.com. If a debt you don’t recognize shows up there, follow the instructions to dispute the debt. And, as always,report any problems to the FTC.