Three Ways to Recognise a Debt Management Scam

There have been reports in recent months about households receiving calls from, ostensibly, reputable debt management firms, which in fact turn out to be scammers. Here are three ways to help recognise which is a legitimate debt solutions company.

Debt Management

It is important to point out that most debt management companies are legitimate and offer a good service, however sadly some companies are jumping on the band wagon and are taking advantage of people in difficult financial circumstances.

Amidst some of the harshest times that UK consumers have seen in several decades, the prevalence of debt management companies and services is growing, and more people may be inclined to accept the help of an outstretched hand.

But do you know who is reaching out to you? Scam callers might be after any number of objectives, from coercing you into using their “services” in exchange for exorbitant fees, to obtaining your personal information. Such calls can go well beyond the annoying and cause a fairly serious catastrophe, so knowing when a call is legit and when it’s not is a good skill to have.

Here are three recommendations for determining whether a call from a debt management service is legitimate or not:

Disclosure of information

A caller might declare that they’re from a certain firm and immediately launch into a pitch or scare tactic. Ask for the firm name again, and where they’re based, or anything else you’d like to know.

Unsolicited contact

While some firms may earnestly be seeking regular business through cold calling, any firm with which you’re working, along with most free public services, will not call without some sort of direct prompting.

Silence preceding voice on the phone

Many overseas call centres use silent calling, which dial numbers automatically while human callers scramble to get through their pitches fast enough to answer each one. Of course, if you have to wait for someone to speak up after you’ve answered the phone, debt management service or not, it’s probably time to hang up.

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