New telephone scam, don't be fooled

The South Carolina Department of Consumer Affairs is warning folks about a telephone debt collection scam. Charles Ellison, spokesman for the department says "we've had complaints from quite a few consumers about the calls and one person, an elderly woman, actually sent the scammers about $1,000 after she got a call," he tells me.

Ellison says callers play on people's fears by threatening incarceration for past debt, but he says don't be fooled. "It's just the latest scam con artists have invented to rip you off," he says.

The scam starts with an unsolicited telephone call telling you that you owe a large, unsettled debt and you have to pay it or face prosecution or imprisonment. The caller, however, is willing to make a deal. If you pay within the next 48 hours via Western Union or MoneyGram, you will only have to pay a fraction of the total bill.

Ellison says this a fraud, you don't owe any money. "And there is no debtor's prison, and you will not be taken to jail for owing money."

Ellison says often scams are based on current events. And there's been a lot in the news lately about more consumers defaulting on their debts. "The scammers are incredibly adaptive, any new angle they can find, they use."

He reminds consumers:

** Don't be fooled by the caller using the name of a real business.
** If you don't remember the debt, don't pay it.
** Check your credit report, personal records, or call the company directly before agreeing to pay any debt you don't recall.
** You cannot be jailed for private debts, and it is illegal for any debt collector to threaten such action.
** Never wire money to someone you do not know.
** If you receive one of these telephone calls, hang up and report it to the South Carolina Department of Consumer Affairs. If you have already fallen prey to this scheme, please contact the Department at 1-800-922-1594, or online at www.scconsumer.gov .

In addition, here's some information you may need to know regarding "legitimate" debt collectors.
** A debt collector can only call between the hours of 8.a.m and 9 p.m. (That's federal law.)
** They can't call several times in a 24 hour period.
** You must receive something in writing ten days after the first telephone call.
** They can't mis-represent themselves as an investigator. They have to indicate they are trying to collect a debt.
** They can't threaten any action they don't plan to take (for example they can't take you to jail.)
** You are not obligated to pay someone else's debt (like a family member's unless you have co-signed the loan.)