The government is stepping up to bat as debt collection hoaxes rise. In recent news, Buffalo New York has been home to a number of illegal debt collection practices, and authorities have arrested at least twelve people. Although the vast majority of collection agencies are legitimate and good economically, there has been a rising amount of deceptive and unlawful practices.

In Buffalo, people have been caught calling up people who owe money and posing as police officers. They have threatened to send debtors into prison, or even take child custody away from them. And it doesn't end there.

A recent civil case imposed a $675,000 penalty ever imposed on a debt collection business, for illegal and deceptive practices. This includes harassing and lying to consumers, disclosing their debt to third parties, and depositing post dated checks early. These practices were accompanied by fraudulent claims from agents saying they were lawyers or other figures of authority.

In addition to refusing to reveal the address or phone number of the "company" these agents even went as far as to call individuals who did not owe any money at all and attempted to collect from them. Despite claims that it was individual workers acting fraudulently, the Federal Trade Commission went after the business owners and won a case that imposed the biggest penalty ever for debt collection agencies.

To skirt the issue of being a victim to fraudulent collection agencies, it is imperative that you know your rights. A collection company can never seize a debtor's assets, bank accounts, or paychecks. They can not get a debtor fired from their occupation, and cannot make any kind of public disclosures concerning the debt, and they can definitely never threaten or engage in violent acts.

For more information, refer to the Fair Debt Collection Practices Act, which outlines the laws and regulations of debt collection.