In this tough economic climate the number of companies attempting to take advantage of consumers in difficult financial straits has drastically increased. This means consumers in debt have to take more steps to protect themselves at a time when they need to be able to trust both those trying to collect their debts and the professionals they hire to help get them out of debt.

It isn’t always easy to know when someone is trying to take advantage of you, even for the most business savvy person. Companies in business to take advantage of people are very sophisticated, and hard to catch. While both state and federal governments have enacted numerous consumer protection laws, most laws are aimed at providing consumers with relief after they’ve been the victim of fraud rather than preventing it. Obviously, given the number of companies doing business in the US, it would be impossible for the government to monitor each and every one of them to ensure that they are complying with the regulations that are designed to prevent consumer fraud.

Therefore, everyone should take steps to protect their private information from the public. Here are some things everyone can do to prevent scammers from getting their information:
• Be careful about giving out your sensitive information like social security numbers, driver’s license, and bank account numbers over the internet. Make sure your connection is secure, your firewalls up, and that any one receiving the email is someone you trust.
• Shred bills with account numbers or sensitive information on them before you throw them out.
• Do not mail anything with sensitive information from home. It is easy for anyone walking by to open your mailbox and take out letters. Mailing letters at the post office or putting them in one of the drop boxes is safer, especially since it is a federal offence to break into them.
• Do not use public or shared computers to send sensitive information, unless you trust everyone who was on the computer before you and everyone who will be on the computer after you.
• Use your web browser’s password save feature as little as possible. Do not use the password save for things like email accounts, online banking, online credit accounts, or any other site that uses sensitive information. There are dozens of different software programs for Mac, Windows, and Linux that password protect your passwords that are relatively cheap. There are also programs that will encrypt your passwords and any other sensitive records on your computer that are more expensive.
• If you buy a new computer, make sure that any information like auto-fill preferences, passwords, and sensitive records are erased from the old computer before you sell it or throw it out. In fact, it’s a good idea to periodically back your data up on to a CD or DVD ROM and store them in a safe place.
• Do not give out your cell phone number to anyone you don’t trust. It is illegal for companies to mine cell phone numbers in the US, but giving out your number allows the company you give it to the opportunity to sell your information. You can easily stop telemarketing calls by registering your number with the FTC’s National Do Not Call Registry, keeping your phone number unlisted, or contacting your phone company to block a number.
• Do not apply for every credit card that sends you applications. The more you send out your information, the greater the chance that someone could get a hold of your information Also, check out the credit card company before you apply to make sure the offer is legitimate and from a company you can trust.
• Check out every company you borrow money from. Make sure they’re licensed to issue loans in your state, and check their Better Business Bureau accreditation. Read the loan agreement and ask question about anything you don’t understand before signing.

Even if you get into debt with someone you trust, you could still end up the victim of a scam. The most common scam happens when a consumer gets a letter or a phone call from a company that claims to be a collection agency they owe money too, and starts harassing the consumer to pay them. Sometimes these companies are legally trying to collect on a debt they’ve either been assigned by or purchased from the original creditor. But increasing numbers of these companies are trying to collect on debts they have no right to.

Here’s how it works. Like advertising companies, debt collectors mine information. Usually, they are looking for companies that deal in credit, hoping to work with them to collect money owed to them. But some companies use credit reporting services and other information gathering sites to look up debtors’ information, hoping that they can scam debtors into paying them money the company doesn’t have a right to. The companies then send out letters to or call debtors and try and collect.

If you get a letter or a call from a company you don’t recognize, claiming to represent someone you owe money to, it is relatively easy to protect yourself.
• Know who you are talking to. Ask the representative on the phone to identify him or herself by name and/or customer representative number, the name of the company they work for, and the creditor they claim to represent. Do not give you your information to anyone who refuses to identify themselves. If the person claiming to represent a creditor becomes rude, then hang up.
• Get a contact number. Caller ID can help you if the person calling you refuses to give you their company’s phone number, and is available from every phone company in the US.
• Do not pay anyone that you are not sure you owe money too. You should always get verification in writing from a company you don’t recognize before making any payments. Any company that refuses to verify their right to collect in writing (or claims they don’t have to) is attempting to defraud you.
• Research the law. The Federal Fair Debt Collection Act has been enacted with variations in every state in the US. And every company must follow the FDCPA laws of the state they are doing business in, no matter what their representatives say.

If you ever need help getting out of a bad situation or want to know more about your state’s consumer protection laws, do not hesitate to get professional help. Talking to a collections or consumer rights lawyer can end up saving you money in the long run, and keep you from becoming a victim.