Have you tried answering a call from someone claiming to be Alorica Inc.?
Your phone rings. The caller ID shows an unfamiliar number. You pick up, and someone says they're calling about a debt.
But here's the problem: you have no idea what they're talking about.
This scenario happens to thousands of Americans every day.
Understanding who Alorica is and why they're contacting you can help you handle the situation confidently and protect your financial rights.
What is Alorica Inc.
Alorica Inc. operates as one of the largest third-party debt collection agencies in the United States. The company employs over 100,000 people across multiple countries and handles debt collection for major creditors, including banks, credit card companies, healthcare providers, and utility companies.
Here's how it works in simple terms:
Let's say you had a credit card with Bank ABC. You owed $2,500 but stopped making payments six months ago. Bank ABC tried to collect the debt for 90-180 days with no success. At this point, Bank ABC has two options:
- Sell the debt to a collection agency for pennies on the dollar (typically 4-15 cents per dollar)
- Hire a collection agency like Alorica to collect on their behalf for a percentage of what they recover (usually 25-50%)
Numeric Example:
- Original debt: $2,500
- Bank ABC sells debt to Alorica for: $250 (10% of face value)
- Alorica now owns the debt and will try to collect the full $2,500 from you
- If they succeed, they profit: $2,250
When companies hire Alorica as a collection agent (not buying the debt), the numbers look different:
- Original debt: $2,500
- Alorica collects: $2,500 from you
- Alorica keeps: $1,000 (40% commission)
- Original creditor receives: $1,500
Alorica handles collections for various debt types:
- credit cards ($500-$15,000 average),
- medical bills ($200-$50,000),
- student loans ($5,000-$100,000),
- auto loans ($3,000-$30,000),
- and personal loans ($1,000-$25,000).
Why Alorica Is Calling You
Alorica calls you for three main reasons:
1. You actually owe the debt. You fell behind on payments, and the original creditor passed your account to Alorica for collection.
2. The debt belongs to someone else. Mistaken identity happens more often than you'd think. Someone with a similar name or Social Security number might owe the debt. Database errors cause roughly 20% of collection calls to reach the wrong person.
3. The debt is past the statute of limitations. In many states, creditors have 3-6 years to sue you for unpaid debt. After this period, the debt becomes "time-barred." Collectors can still call, but they cannot take legal action. However, making a payment or acknowledging the debt can restart this clock.
Good Read: Statute of Limitations on Debt in Texas: What You Need to Know
How to Handle Alorica Inc. Contact
As someone who has helped hundreds of clients navigate debt collection, I recommend a strategic approach that protects your rights while addressing legitimate debts.
Step 1: Don't admit anything on the first call.
Tell Alorica you need to verify the debt before discussing payment. Request they send written verification by mail. Under the Fair Debt Collection Practices Act (FDCPA), you have this right.
Step 2: Send a debt validation letter within 30 days.
This letter formally requests proof that you owe the debt. Send it via certified mail with return receipt requested. This creates a paper trail and forces Alorica to prove the debt is yours.
The Pros of Debt Validation:
- You protect yourself from paying debts you don't owe
- You identify errors in the amount owed
- You stop collection calls temporarily while they verify
- You build documentation if you need to dispute the debt
- You delay potential legal action while gathering information
The Costs:
Debt validation costs very little, typically $5-$10 for certified mail. The real investment is time. You'll spend 2-3 hours researching, writing the letter, and tracking responses.
Step 3: Negotiate strategically if the debt is valid.
Alorica often settles for 30-60% of the original balance. They purchased the debt at a discount, so any amount above their purchase price is profit.
Real-world settlement example:
- Alorica claims you owe: $3,000
- They paid for the debt: $300
- Your opening offer: $900 (30% of $3,000)
- Alorica's counteroffer: $1,800 (60% of $3,000)
- Final negotiated settlement: $1,350 (45% of $3,000)
- Your savings: $1,650
Step 4: Get everything in writing before paying. Never send money based on a verbal promise. Demand a settlement letter that states: the exact amount you'll pay, confirmation that this settles the debt in full, and agreement that they'll report the account as "paid" or "settled" to credit bureaus.
Step 5: Pay with a trackable method. Use a money order, cashier's check, or bank transfer, never give them direct access to your bank account. Save all payment receipts.
My Expert Opinion:
Most people make the mistake of either ignoring Alorica completely or paying immediately without verification. Both approaches hurt you. Ignoring them can lead to lawsuits and wage garnishment. Paying without verification might mean paying a debt you don't owe or paying more than necessary.
The smart approach combines documentation, negotiation, and protection. You acknowledge the contact, demand proof, and negotiate from a position of knowledge rather than fear.
How to Check Alorica Calls Legitimacy
Scammers frequently impersonate debt collectors. According to the Federal Trade Commission, consumers reported losing $38 million to debt collection scams in 2023.
Here's your step-by-step process to verify if the caller really represents Alorica Inc.
Step 1: Don't trust caller ID
Scammers use technology called "spoofing" to make any name or number appear on your phone. The caller ID might say "Alorica Inc." when it's actually a criminal in a basement somewhere. Treat every call as potentially fake until you verify it.
Step 2: Ask for specific information
When they call, ask these questions and write down their answers:
- "What is your full name?"
- "What is your employee ID number?"
- "What is your direct callback number?"
- "What is the name of the original creditor?"
- "What is the account number for this debt?"
- "What is the exact amount owed?"
A legitimate collector will provide this information. A scammer will often become angry, threatening, or hang up when you ask detailed questions.
Step 3: Hang up and call back yourself
Never continue the conversation on the initial call. Tell them you need to verify their identity and will call back. Then hang up. This is not rude, it's smart financial protection.
Step 4: Look up Alorica's official contact information
Go to Alorica's official website (alorica.com) and find their contact numbers. Do not use the number the caller gave you. Do not Google "Alorica phone number" and call the first result, scammers create fake websites and pay for top search results.
Step 5: Call Alorica directly using the official number
When you reach Alorica through their verified number, say: "I received a call from someone claiming to work for your company about a debt. Can you verify if you're attempting to collect from me? The person gave me this information: [share what they told you]."
Step 6: Check your credit report
Visit AnnualCreditReport.com (the only official free credit report site authorized by federal law). You can check all three credit bureaus, Equifax, Experian, and TransUnion, once per year for free.
Look for Alorica Inc. or the original creditor in your collections section. If the debt appears on your credit report, it's likely legitimate. If it doesn't appear anywhere, that's a major red flag.
Step 7: Request written verification by mail
Even if you confirm Alorica is calling you, demand written verification sent to your physical address. Legitimate collectors will comply. They must send you:
- The amount of the debt
- The name of the creditor you allegedly owe
- A statement of your rights to dispute the debt
- Instructions on how to dispute if you believe it's incorrect
Warning signs of a scam:
Watch for these red flags that scream "fake collector":
- They demand immediate payment via gift cards, cryptocurrency, or wire transfer
- They threaten arrest or criminal charges (debt is civil, not criminal)
- They refuse to send written verification
- They call multiple times per day or before 8 AM or after 9 PM
- They contact you at work after you've told them not to
- They discuss your debt with family members, neighbors, or coworkers
- They use abusive, threatening, or profane language
- They claim to be law enforcement or government officials
Step 8: Report suspicious calls
If you determine the call was a scam, report it to:
- Federal Trade Commission (FTC): ReportFraud.ftc.gov
- Consumer Financial Protection Bureau (CFPB): consumerfinance.gov/complaint
- Your state attorney general's office
- Your local police department
Step 9: Document everything
Keep a detailed log of all calls, including date, time, caller name, callback number, and what they said. If Alorica is harassing you or violating collection laws, this documentation becomes evidence.
Step 10: Consider putting a fraud alert on your credit
If you're receiving multiple suspicious debt collection calls, contact one of the three credit bureaus and request a fraud alert. This makes it harder for scammers to open accounts in your name. The fraud alert lasts one year and you can renew it.
The Bottom Line
Receiving a call from Alorica Inc. about an unknown debt feels stressful. But you have rights, options, and a clear path forward. Start by verifying the legitimacy of the call and the debt. Demand written proof. Negotiate from a position of knowledge. And never let fear or pressure force you into paying money you might not owe.
Remember that legitimate debt collectors follow the law.
They send written verification. They negotiate in good faith. If someone claiming to be from Alorica violates these standards, you're likely dealing with a scammer or an unethical collector you can report to federal authorities.
Take control of the situation. Document everything. Verify first, negotiate second, and pay only when you've confirmed the debt is real, accurate, and yours.