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Phantom Debt Collectors Harass Americans, Demand Money

Hundreds of thousands of cash-strapped Americans have been targeted by abusive debt collectors operating out of overseas call centers suspected of links to organized crime in India, law enforcement officials told ABC News. The calls are part of a massive scam, one that appears to target struggling Americans -- especially those who have gone online to apply for payday loans. Armed with personal information from those pilfered applications, the threatening callers, who claim to be debt collectors poised to initiate legal action, have managed to pry loose millions of dollars from their victims -- even when the victims never owed money in the first place.


Stockton Faces Municipal Bankruptcy Vote

The city of Stockton, Calif., will decide Tuesday whether to give city leadership the authority to declare bankruptcy if the city can't reach a deal with its creditors by the end of the month.

In February, Stockton entered negotiations with creditors under a new California law that requires municipalities to hold mediations before filing for Chapter 9 bankruptcy protection. In a meeting Tuesday, Stockton's city council will vote on a resolution that would allow its city manager to declare the city bankrupt.


BBB Warns of Debt Relief Fraud

The Better Business Bureau recently issued a warning to consumers regarding the misleading practices of debt settlement companies. This warning comes after receiving more than 3,500 complaints since the start of the recession in 2007. The BBB reports that many individuals paid hundreds of dollars in upfront fees to debt settlement companies, but only fell deeper into debt after the process failed.


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