Debt Notices Are Not Always Real

This from Consumer Affairs:

Just because a debt collector sends you a notice that you owe money, it doesn't mean the claim is legitimate. Oftentimes these companies make honest mistakes. Sometimes they engage in out and out fraud.

In West Virginia, one consumer received a notice from Pinnacle Credit Services demanding payment for a debt it was assigned to collect. The consumer denied she owed the money and when the company persisted, she contacted the state attorney general's office.

It turned out Pinnacle wasn't licensed to collect debts in West Virginia, so the attorney general sued. As part of the settlement, the company cancelled more than $1 million in debt it was trying to collect in the state.

The take-home lesson?

"Consumers may receive collection notices for debts in amounts they believe to be inaccurate or for creditors they do not recognize," said West Virginia Attorney General Darrell McGraw. "Consumers should dispute the debt in writing and request documents that verify the debt."