Phantom Debt

Phantom Debt refers to a debt that a consumer owes but is either nonexistent, inaccurate, or inflated. This type of debt often arises from fraudulent practices, billing errors, or aggressive collection tactics where individuals are pursued for amounts they do not actually owe.

Examples:

• A person receives a collection notice for a Credit card debt they never had.
• A former tenant is pursued for unpaid utility bills that were settled before moving out.
• An individual is contacted regarding a student loan they never took out.

Cases:

• A woman was sued for a medical bill that was already paid by her insurance, resulting in a lengthy legal battle to prove her innocence.
• A man discovered that his identity had been stolen when he started receiving calls for debts incurred by someone else.
• A company was fined for attempting to collect on debts that were past the Statute of Limitations, leading to claims of phantom debt practices.