All articles 7 min read

Fake Debt Collectors and Credit-Card Rate Reduction Offers

This guide presents selected U.S. government consumer education from Federal Trade Commission. References to “we” or “us” in the source material refer to the issuing agency. Source dates and links appear below.

Fake and Abusive Debt Collectors

Have you ever gotten a call about a debt you don’t recognize? Or had a collector harass, threaten, or lie to you? Whether or not you owe a debt, you have rights when it comes to debt collectors. Here’s what you need to know.

How to Spot Fake Debt Collectors 

Not everyone who calls and says you owe a debt is a real debt collector who is collecting a real debt. Some are scammers who are just trying to take your money. So how do you tell?

A caller may be a fake debt collector if they

  • want you to repay a debt you don’t recognize
  • refuse to give you their mailing address or phone number
  • pressure you, or try to scare you into paying by threatening to report you to law enforcement or have you arrested

How to Know If a Debt Is Yours

Did someone contact you about a debt you don’t recognize? The best way to confirm it’s yours is to get “validation information.” By law, debt collectors have to tell you the following in writing or over the phone

  • the name and mailing address of the debt collector
  • the name of the creditor you owe money to
  • how much money you owe, with detail that includes interest, fees, payments, and credits
  • what to do if you don’t think it’s your debt
  • your debt collection rights, including your right to get information about the original creditor if you ask for it within 30 days of getting validation information from the collector

Once you get the validation information, if you still don’t recognize a debt, or don’t think the debt is yours, send the debt collector a dispute letter. Say you don’t owe some or all of the money, and ask for verification of the debt.

Make sure to send the dispute letter within 30 days. Once the collection company gets the letter, it must stop trying to collect the debt until it sends you written verification of the debt, like a copy of the original bill for the amount you owe. Consider sending your letter by certified mail and requesting a return receipt to show that the collector got it. Keep a copy of the letter for your records.

If you don’t dispute the debt within 30 days of getting the validation information, the debt collector will assume the debt is legitimate.

Before you trust a person who calls to collect a debt, especially one you don’t recognize

Get “validation” information about the debt.

  • Either when they first communicate with you or within 5 days of the first contact, debt collectors must tell you information about their company and the debt.  

Don’t respond to threats.

  • Did the debt collector threaten to arrest you, suspend your driver’s license, or call your employer? Hang up and report them.

Dispute the debt.

  • Think you don’t owe some — or all — of the debt? Dispute it with the collector by mail or online.

Learn more about dealing with debt collection at ftc.gov/debt.

How to Spot an Abusive Debt Collector 

What if you recognize the debt, but you think the debt collector is harassing or lying to you? Or treating you unfairly? Here are some things to know:

Collectors can’t harass you. For example, collectors

  • can’t threaten to hurt you
  • can’t use obscene or profane language
  • can’t call you more than seven times within a seven-day period to try to reach you about a particular debt. Once you talk to a collector, they can’t call you again within seven days of that conversation.

Collectors can’t lie. For example, collectors

  • can’t say you owe a different amount than what you actually owe
  • can’t pretend to be an attorney or from the government
  • can’t say that they’ll have you arrested, or claim they’ll take legal action against you if they won’t.

Collectors can’t treat you unfairly. For example, collectors

  • can’t try to collect interest, fees, or other charges on top of the amount you owe, unless the original contract or your state law says they can
  • can’t deposit a post-dated check early
  • can’t publicly share your debts, including by sending postcards or putting information on envelopes

Report Fake and Abusive Debt Collectors 

Have you spotted a fake or abusive debt collector? Report it to

Many states have their own debt collection laws that are different from federal laws. Your state attorney general’s office can help you determine your rights under your state’s law.

How To Recognize Scams To Lower Your Credit Card Interest Rate

Some scammy debt relief companies promise to get you a lower credit card interest rate, claiming they can save you thousands of dollars. But they don't have special connections to do that. These companies can’t do anything for you that you can’t do for yourself for free. 

Why Your Interest Rate Matters

Having a high interest rate on your credit card means you’ll end up paying more for things you buy, unless you pay your credit card bill off every month. It also might take you longer to pay off your credit card balance.

While there are no guarantees, you might be able to lower your interest rate by calling the customer service number on the back of your credit card and asking the company for a lower rate. There aren’t any shortcuts or special tricks to getting a lower rate.

How Scams To Lower Your Interest Rate Work

You’ve probably gotten calls or messages from companies guaranteeing — for a fee — to get you a lower credit card interest rate and promising to save you thousands of dollars. These scammy debt relief companies will tell you just about anything to get your money — and do little or nothing to actually help you:

  • Scammers say they have special relationships with banks and credit unions. They don’t.
  • Scammers might say the lower interest rates they’re promising are only available for a limited time. They say you need to act now. But they’re just trying to rush you into a quick decision.
  • Scammers guarantee you’ll get your money back if they can’t get you a lower rate. It’s not true. Instead, you’re likely to end up paying their fee, plus extra balance transfer and other fees they didn’t tell you about.

These companies can’t do anything for you that you can’t do yourself for free.

Also, by law, companies that sell debt relief services on the phone can’t charge a fee before they settle or lower your debt.

How To Protect Yourself from Credit Card Debt Relief Scams

Dishonest debt relief companies promise special tricks or shortcuts that don't really exist. Skip the scams and reach out to your credit card company directly for help. Here are ways to avoid a scam:

Don’t share your credit card, bank account, or Social Security numbers — or any other personal information — with anyone who calls you unexpectedly. Once a scammer has your information, they might use it to commit other fraud against you.

Never pay up front. It’s illegal for a debt relief company to charge you before they help you. That includes money for services to lower your credit card’s interest rate.

Hang up on robocalls. If you answer the phone and hear a recorded message from someone trying to sell you something, it’s almost always an illegal robocall. It’s also probably a scam. Hang up. Pressing numbers to speak to someone or remove you from the list will probably only lead to more robocalls. Learn more at ftc.gov/robocalls.

What To Do if You Paid A Scammer

Scammers often ask you to pay in ways that make it tough to get your money back. No matter how you paid a scammer, the sooner you act, the better. Learn more about what to do if you paid a scammer.

Report Fraud

If you spot a scam to lower your credit card interest rate or have information about a company or scammer who called you, report it at ReportFraud.ftc.gov.

If you didn’t lose money and just want to report a call, report it at DoNotCall.gov.

Sources and publication details

The federal agency source text is U.S. government work in the public domain. Fynoptic selected, adapted, and formatted it for this guide. No agency endorsement is implied. Follow the linked sources for current program details and the rules applicable to your circumstances.

Back to all articles