Santa Cruz and Watsonville residents have called the Santa Cruz District Attorney’s Consumer Affairs office to report receiving harassing calls from people telling them that they owe a debt. Some of the aggressive debt collectors threaten arrest or jail time if the amount is not paid immediately with a debit card or a wire transfer of funds.
This week a Watsonville resident reported she received a call several months ago and paid $500 with her debit card after being told that a Watsonville police officer was prepared to arrest her if she didn’t pay the debt on a payday loan. She said that she was called again this week and was told that she owed an additional $500 or she would be go to jail. She was frightened by the threats, but did not agree to pay a second time.
Several senior citizens claim that debt collectors have been calling several times every day and have tried to collect debts that are not owed. The callers are persistent and often ask for social security numbers and other personal financial information in order to verify the debt.
The District Attorney’s Consumer Affairs unit advises consumers that many of the debt collection tactics are not legal and urges consumers to verify any claims before paying a debt. Be aware that:
- A debtor cannot be arrested for an outstanding debt on a consumer purchase or loan.
- Ask for the business name and address of any debt collector who may call you. Send them a letter to request proof of any debt and advise them to cease all telephone calls.
- Do not pay a debt over the telephone.
Contact the District Attorney’s Consumer Affairs unit at 454-2050 if you have debt collection questions.