Fake debt collectors: threatening calls about a debt you don't owe

Fake debt collectors: threatening calls about a debt you don't owe

"This is the collections department. You have an overdue debt of $2,340. If it isn't paid today, we'll take you to court and send the bailiffs." The caller is aggressive, says they've "already tried to reach you many times" and wants payment by the end of the call. You don't remember owing anything. That's the point: fake debt collectors invent debts, or pick up real but old ones, and use fear so you'll pay without checking.

How does the fake debt collector scam work?

• The invented debt. They say you owe a payday loan, a buy-now-pay-later instalment or a phone bill you never signed up for. Sometimes they say it's an old debt "bought" by their company.
• A real debt, but someone else's or already paid. They use details from data breaches (name, date of birth, address, a company you once dealt with) to make the claim believable.
• The fake "court proceedings". They say there's a court order or an arrest warrant and that only paying today will "close the case".
• Pressure through people you know. They call or message your family, workmates or employer to shame you into paying.

How do I recognise a fake debt collector?

1. They won't give you the basic information in writing. A legitimate collector can tell you who the original creditor is, the account, the date and an itemised amount, and will put it in writing.
2. They threaten you with jail or arrest. Owing money to a business isn't a crime, and Police don't call people to collect debts.
3. They demand payment on the spot. A real debt can wait while you check it. Extreme urgency is a tool to stop you thinking.
4. They want gift cards, cryptocurrency or a transfer to an individual's account. Genuine businesses take payment into accounts in their own name and give you a receipt.
5. Courts don't work this way. Court documents arrive formally, in writing, not as a phone call demanding immediate payment.
6. They threaten to tell your family or employer. Spreading your supposed debt around to humiliate you isn't a legitimate collection practice.
7. The number is private, overseas or changes with each call. Not proof on its own, but it adds up.

What are my rights when dealing with a debt collector?

• Ask for the debt in writing, with the creditor's name and the details of the debt.
• Pay nothing until you've checked it.
• Not to be harassed or coerced. The Fair Trading Act prohibits harassment and coercion, including threats or other controlling tactics, to get payment. Consumer Protection's Fair Trading Act page explains it.
• Access your personal information. Under the Privacy Act you can ask a business what information it holds about you, and complain to the Office of the Privacy Commissioner if your information is mishandled. You can also ask New Zealand's credit reporting agencies (such as Centrix, Equifax and illion) for a copy of your credit report to see whether any debt is listed against you.
• Free, confidential help. If you're worried about a real debt, MoneyTalks, the free financial helpline run by FinCap, can connect you with a financial mentor: 0800 345 123.

What do I do right now if they call?

1. Don't pay anything during the call. Not a portion "to stop the bailiffs", not "a deposit". Say you'll review it in writing and hang up.
2. Don't confirm any details. Don't give your date of birth, address or bank details, and don't acknowledge the debt verbally.
3. Write everything down. Number, date, time, the company's name, the amount and what they told you. Save screenshots of texts, emails or WhatsApp messages.
4. Check it yourself. Look up the official contact details of the supposed company or original creditor yourself (never the number they gave you) and ask. Check your bank statements and your credit report.
5. If they mention a bank or a lender, call its official number, the one on your card or its website. If they talk about a court or an overdue fine, check through the Ministry of Justice's official channels or get free advice from the Citizens Advice Bureau or a community law centre.
6. Block the number once you've noted the information, and don't call back unknown numbers.
7. Warn your family and workplace if they threatened to contact them: if they know in advance it's a scam, the pressure disappears.

What if I've already paid or given my details?

• Call your bank on its official number and explain you've been scammed. Ask them to try to stop or recall the payment, and change your internet banking password.
• If you gave card details, block the card in your bank's app.
• If you gave personal details, watch your accounts and your credit report: they may try to apply for credit in your name.
• Don't pay a second time. If you paid, they'll come back with "a new debt" or "late fees".
• Be wary of anyone offering to recover your money for a fee: it's a second-round scam.

Where do I report it?

1. NZ Police. Report it on 105 or through the 105 online service on the NZ Police website, with all the evidence: screenshots, numbers, payment receipts. If you've been threatened with violence or feel unsafe, call 111.
2. The National Cyber Security Centre (NCSC), which collects reports of scams and fraud.
3. The Commerce Commission, if a real collection business uses threats, harassment or misleading claims.
4. The Office of the Privacy Commissioner, if a real company mishandles your information or spreads your supposed debt.
5. Report the number in the spam numbers directory so others can recognise it.

Frequently asked questions

They knew my full name and date of birth. Doesn't that prove it's real? No. That information circulates after data breaches. Knowing your details doesn't prove you owe anything.

Can Police come to my house over a debt? Not to collect a consumer debt. Police don't collect debts for businesses. If someone says otherwise, it's a scam or an illegal threat.

What if I really do have an old debt? Ask for it in writing and check it before paying anything. A financial mentor through MoneyTalks can help you work out what you owe and how to deal with it.

They keep calling even though I block them. What do I do? Keep a log of the calls, don't answer, and report it to Police if the calls become threatening. Your phone provider may also be able to help with persistent nuisance calls.

In short

A real debt can be checked, put in writing and paid calmly; a fake one comes with threats, urgency and strange payment methods. Don't pay during the call, confirm nothing, check the debt yourself and know your rights. If you've already paid, call your bank and report it to Police. And report the number in the NoCall spam numbers directory.