Call from 1-866-254-7556?

If you receive a call from Eastern Capital, at 1-866-254-7556, be very careful. I recommend you a) ask them for their mailing address, b) take detailed notes about what they say, and c) that you talk to a lawyer familiar with the federal Fair Debt Collection Practices Act (FDCPA) before you send them any money.

It is very easy for scam artists to buy lists of people who are in debt.  The criminals then call and try to scare them into paying money they do not owe or that the fraudster has no right to collect.

Here are some ways to protect yourself when dealing with debt collectors:

• NEVER wire them money.
• NEVER allow them to withdraw money right out of your bank account.
• Always ask them for a mailing address.
• Always ask them to mail, not fax or e-mail, you proof you owe the debt.
• After you receive the proof in the mail, mail them a Bank Check or US Postal Service Money Order.

Eastern Capital Debt Collectors

I do not know if Eastern Capital is a scam. But I do know that they are not licensed to collect debts in Rhode Island even though they tried to collect one from a person in Warwick, Rhode Island. They used the phone number (866) 254-7556.  They may also be calling people in Fall River or New Bedford, Massachusetts.

Learn More

Read about fraudulent debt collectors here and about your rights under the FDCPA here

Fight Back

If you think a debt collector tried to pull a fast one on you, file a complaint here with the Federal Trade Commission and contact an attorney who handles consumer cases in your area.

Bankruptcy Voids Warranties

When a manufacturer goes bankrupt, its warranties generally become worthless. Thousands of consumers learned that the hard way when the companies that sold them motor homes (RV’s) went out of business over the past few years.

Similarly, Chevy owners may be in for an unpleasant surprise as General Motors tries to use its bankruptcy filing to to dodge responsibility for 400,000 allegedly faulty Chevrolet Impalas built before it filed bankruptcy.

Meanwhile, Saab has been in financial trouble for months and the Wall Street Journal is reporting it may be forced into bankruptcy any day now because it cannot pay its workers.

If you own a Saab that needs any repairs that may be covered by a warranty, get it to a dealership today.

Update: 10/12/11 – The company is in bankruptcy and waiting for a Chinese auto maker to rescue it.

How is this for ironic:

1. Dennis stars in televisions ads touting Honda’s “Really Big Thing” financing deals.

2. Dennis decide to buy a Honda Civic with the advertised financing.

3. One Honda dealer tells Dennis he has good credit, and qualifies for the financing, but they do not have a Civic to sell him.

4. Another Honda dealership tells Dennis he has bad credit but they can sell him a Civic with a monthly payment $100 more than the advertised one.

It really happened to actor Dennis Singletary; read about it here.

If Honda dealers are willing to fleece him, just think what they will do to you.

Protect Yourself When Shopping for a Car

Honda makes great cars but they, and other car makers, need to do a better job policing their dealers. Until they do, you need to protect yourself from common dealer scams.  Start by reading Consumer Reports excellent advice on shopping for a new or used car.