Be on the lookout for payday loan debt collection scams

Thursday, August 26th, 2010 By

seeing through a payday loan debt collection scammer

Consumers can see through the payday loan debt collection scam if they understand their rights, the law and their finances. Thinkstock photo.

A payday loan debt collection scam has been victimizing consumers in Illinois. Con artists posing as debt collectors have somehow obtained the phone numbers and personal data of current and former payday loan borrowers. Reaching their targets on the phone, the fraudulent payday loan collectors use scare tactics such as bullying and the threat of lawsuits and jail. The payday loan debt collection scam has proliferated to the point that Illinois Attorney General Lisa Madigan has issued a consumer alert.

Debt collection scammers use threats and intimidation

In recent weeks, the Illinois attorney general’s office has fielded a marked increase in consumer complaints about phone calls from bogus payday loan debt collectors. Consumer Affairs reports that people who have gotten payday loan scam calls say they’ve taken out payday loans, most often from online payday lenders, but have paid the debt on time. They say the scammers know their names, social security numbers, employer and bank account numbers. Because the con artists have such sensitive personal information, their victims often believe the debt collectors are legit. The scam artists use threats and intimidation, such as lawsuits and jail, to dupe them into authorizing a direct withdrawal from their checking account. Sometimes, consumers are tricked to sign promissory notes and fax them to the bogus collectors.

Legitimate payday lender compromised

Illinois payday loan customers aren’t the only ones getting harassed by debt collection scammers. Wallet Pop reports that the payday loan scam calls have surfaced in Ohio, Colorado, Florida, Indiana and other states around the nation. Madigan said the scammers say they are from a variety of bogus companies, such as Morgan & Associates, Federal Bureau of Investigators, DNR Recovery, DNI Recovery, Legal Accounts Association, Department of Law and Enforcement, CashNet USA, America Legal Services, Quick Cash and ACS. Most of the names are fake. However, CashNet USA is real. On its website, CashNet USA has posted a warning about the scam.

Debt collection harassment is illegal

Under the FTC’s Fair Debt Collection Practices Act, it is illegal for debt collectors to call before 8 a.m. or after 9 p.m. They also can’t demand more money than what is owed, reveal a consumer’s debt to a third party or threaten lawsuits or arrest. Even so, some victims of the Illinois payday loan scam calls told Madigan’s office that they were fooled into paying several hundred dollars. Illinois TV station WIFR reports that Madigan offered some advice for people if they are contacted by the scammers.

People don’t go to jail for failing to pay a debt in this country.

Never give out any personal information over the telephone, especially bank account numbers or credit card numbers.

When in doubt, ask the debt collector to produce documentation that qualifies the debt they seek to collect.

Contact the original creditor to confirm if the debt has been paid. If not, confirm that the debt was sold to a third party collector before making a payment.

  • Vera Bozeman

    I am in Ohio and have too gotten these calls.  First contact was on my voice mail and the threat was “We have called you several times and we are tried of talking to your voice mail, if you dont call us back we will pressed charges against you and your job will be in jeporady”.  So I called them back and his accent was so thick that I could not understand him.  So I told them to send me some paperwork in the mail regarding these charges.  Have not heard nothing from them until today (2/6/13) they called my job and told me personal information such as my SS# so I could prove who I was, then said if you know nothing about these charges hold on and we will get you with the person that can explain the charges.  So another thick accent person got on the line in less then a minute to tell me what I was being charged with, it was a number of charges but the killing part was that I defaurded a payday loan in January of 2013.  I thought that was funny with January just now going out.  So they continue to tell me that  charges would be filed against me and asked if I had a lawyer.  I told them I dont need a lawyer,  if I am going to be arrested then I will use a public defender. So he preceeded to say ok…you will be arrested tomorrow, and hung up.

  • Baker5951

    I HAVE THIS PERSON CALLING ME WHO SAY THAT A FAX AND A SUMMONS HAS BEEN SENT TO HIM THAT I HAD BETTER CONTACT CONTACT THE CREDITOR OR ELSE (FINAL WARNING ) . BUT DON’ T TELL ME WHO THEY ARE .

  • tischad

    I have filed complaints with every agency I could possibly file with and these creeps keep calling. They have been calling me for months and I have tried to reason with them but they get biligerent and just keep calling. What can be done about these people? I have flagged my credit reports changed banks and still they keep harrassing me. Someone give me some insight please.

  • Ndnprincess

    They are hitting Oklahoma, as well. They have been contacting me for almost three weeks. Each time bouncing their phone number from different states. They are always foreigners with heavy accents. They threaten to take my home, getting me fired, etc….The first few times they called I got really rude hoping this would stop them, however; it did not. The past few times I have been really nice offering to tell them about my day, asking about the weather, and their personal lives. When I start these types of conversations they get aggravated with me and hang up. Just tonight, I continued calling them back and asking them how it felt to receive phone calls every 5 minutes. They eventually blocked my phone number so that I could not contact them any longer. Who does the public turn to to help them in these situations?

  • Paige

    They are hitting MS too. They have called & called-I don't answer the phone or listen to their messages anymore. I reported this to everyone I can think of but it never helps. Has been going on for months. They will stop for a few weeks then start again using different "names" but always the same- heavy foreign accent, background noise…

  • Aleshia

    They are hitting Washington, they call at my job and my cell phone endlessly I have an FTC complaint against them Oak View Legal Group is the name they give.

  • Julie

    They need to fall off a very tall bridge or cliff. You would think with as much time and effort they put into doing these scams they could use less energy working a job. They are also hitting AZ too.

  • burt

    these jerk's are worse than having hemroids… they cal and call. they even took 30.00 from my checking account forcing me to go to my bank and close out my account. don't be surprised if you see unathorized money removed from your checking accountif you have another account you better transfer quickly. i also filed out a police report and reported it to attorney general.

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