Alabama AG Luther Strange warns about bankruptcy phone scam


Alabamians are being warned about a scam involving bogus debt collections for bankruptcy filers.

Alabama Attorney General Luther Strange issued the warning Monday to Alabama residents that scammers posing as attorneys representing debt collectors are calling victims and instructing them to immediately wire money in an attempt to pay a debt that is outside of the bankruptcy proceeding.

According to Strange, the perpetrators are not only using publicly available documents about bankruptcy filers to falsify their legitimacy, they’re also “spoofing” the Caller ID system to make it appear they are calling from a bankruptcy attorney’s office, often phoning after business hours to make it difficult to verify they are not legitimate.

According to the National Association of Consumer Bankruptcy Attorneys, “under no circumstances would a bankruptcy attorney or a staff member telephone a client and ask for a wire transfer to immediately satisfy a debt. Nor would the bankruptcy attorney and staff ever threaten arrest if a debt isn’t paid.”

Attorney General Strange urges consumers to be on alert to such scams and warns that such calls are fraudulent and anyone receiving them should report them to law enforcement.

“You should be suspicious of any call you receive demanding you make immediate payment of a debt or face arrest,” warned Strange in a press release. “Debt collectors cannot arrest you. Frequently debt collection scams also claim to be calling on behalf of the IRS, law enforcement, the courts and even the Attorney General’s Office demanding immediate payments. Consumers should never give out personal information over the telephone and should verify the identity of any caller seeking payments.”

For more information on ways to protect yourself from consumer fraud, you may call the Attorney General’s Consumer Protection office at1-800-392-5658, or visit their web site.


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