Any Minnesota resident who has had to go through a bankruptcy or other debt settlement process knows just how stressful such undertakings can be. Even when creditors follow the letter of the law and no heavy handed practices are utilized to make the debtor pay, the emotional toll that the debtor experiences can be very great.

Though some debtors have to endure harassment from unscrupulous creditors, others in challenging financial situations have also had to contend with illegal harassment of illegitimate creditors. Illegitimate creditors are those that pose as real creditors but who attempt to scam debtors into paying them when no debts actually exist between the parties.

For debtors with many outstanding obligations it can be very confusing to keep up with all of the collection agencies calling to secure repayments. Some debtors may not realize that they are receiving calls from individuals attempting to illegally take their money and may therefore erroneously send money to parties with absolutely no claims to receiving it.

All creditors must abide by the regulations of the Fair Debt Collection Practices Act. The Act prohibits creditors from lying or misrepresenting the claims they hold against debtors and also limits the severity of language with which creditors may use when making collection calls. This law can in some circumstances be used to sue illegitimate creditors who prey on struggling debtors.

Though securing debt relief can be a challenging undertaking many Americans are able to overcome their financial challenges. For those who have been victimized by illegitimate creditors, help may be available. Bankruptcy attorneys can help such victims determine their rights to recovering money paid to illegitimate payees.

Source: The Record-Courier, "Debt scammers use unruly tactics to harass victims," Michael. G. Millward, Feb. 28, 2014