MIDWESTERN ALLIANCE Claimed by phone to be NCO Financial. They called me about a debt I did not recognize and threatened to have me served with legal papers and the possibility of going to jail. BUFFALO New York

Someone claiming to be an NCO Financial representative called me (and family members). They stated that I owed a debt to Paragon Lending/Funding. I was unfamiliar with that name and knew that all my debts from 2010 (when this debt was supposedly incurred) were paid.

I disputed it but was told that if I did not pay the debt I would be charged with fraud and possibly arrested. They told me I would be served with legal papers in a matter of days. I agreed to payment out of fear. I have worked hard to get where I am professionally and I was terrified when I heard him say I could be arrested! I paid one payment immediately but did not have all of it.

Interestingly, the charge on my bank statement says the debit was made by "MIDWESTERN ALLI 225 GREAT ARROW AVE STE BUFFALO NY US" with no phone number. Now, I suspect they are the ones doing this while claiming to be NCO. Talk about fraud!!!

I was in the process of filing bankruptcy and I informed my attorney of what happened. He advised me to contact them as soon as I received confirmation documents they promised me. I was to notify them in writing and by phone. I NEVER received documents by postal delivery nor email. I searched for an address online and sent a written notice by registered mail.

One day before they were to draft $200 from my account, I got a call which gave me an actual number I could call back to speak to someone. They tried to say that I have now confirmed the debt on a recording. I told them that I did no such thing because I told them from the beginning that I did not recognize the debt. I only agreed to pay anything because I was threatened. The man I was speaking to denied that I was threatened; he said I was given the facts and that if I cancelled our agreement, I would face legal action and possible charges against me.

He did at least apologize about the documents. He said it appeared they had never been sent.

I still cancelled the payment, as I know from my attorney that this was not a proper collection attempt. They need to be stopped from doing this! I don't believe I owe these people and if I somehow do...why hear about it for the first time 6 years later and be accused of fraud and threatened with going to jail? It has only been 1 business day since I verbally told them I would not pay this debt through them. I guess we will see in the coming days what happens...