Recognize a Scam

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The Fair Debt Collection Practices Act (FDCPA) dictates how loan agents and debt collectors can conduct business. FDCPA applies generally to "debt collectors" who directly or indirectly collect or attempt to collect debts owed. Lenders who work with third party debt collection agencies should make sure they comply with FDCPA. Understanding how lenders and their vendors can legally operate may help keep you from being the victim of a scam. Below are some illegal and questionable behaviors that may indicate a scam:

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• Calls or emails soliciting your personal and financial information.

• Notification that you have been pre-approved for a loan without you having applied for one.

• Being asked to send a ‘good faith’ deposit or pay a ‘processing fee’ to secure a loan.

• The use of scare tactics, abuse, threats, deception, or unfair practices to collect debts.

• Being threatened with prosecution or jail time for debts, either real debts or debts a person doesn’t owe.
   

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Protect Yourself from Scams

     

To help you protect yourself from scams, some helpful tips are listed below:

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• Legitimate lenders display their licenses. When applying for a loan, request the location of their license on their website or ask for a copy.

• Be suspicious of emails or phone calls requesting personal or financial information. Legitimate businesses will not solicit this type of information.

• Protect your Social Security number and banking information, and never share this with an unverified person or source.

• If you receive a call or message from a questionable source asking for immediate action regarding your finances, don’t respond. Instead, call the lender or bank at a phone number found on a statement, on the back of a credit or debit card, or some other verifiable source.

• If you are approached about paying a debt, ask for written verification (this is required by law).

• If you believe you are being targeted by a scammer, report it to the proper authorities. If you believe the name of a legitimate lender is being used under false pretenses, report this activity to the lender.

• Maintain accurate, up-to-date financial records so that you will be aware of your outstanding debts as well as payments you have made. Also, be on the lookout for unauthorized transactions by keeping track of your bank statements and credit card statements

• Every few months, check your credit score through a company like Experian, Equifax, or TransUnion.

• Make sure that the security on your computer, laptop, smart phone, or tablet is up to date.

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For help, go to ontario.ca/consumer-protection

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