Be Wary Of Scammers Posing as Payday Loan Debt Collectors

By: Javi Calderon
Be Wary Of Scammers Posing as Payday Loan Debt Collectors

Over the last several months residents in North Dakota, Ohio and Illinois have been repeatedly contacted and harassed by scam artists posing as payday loan debt collectors. In most cases the victim either never took out a payday loan or paid it off long ago.

The scammers call their victims repeatedly, even at work, threatening to have them arrested if they don’t wire money. One woman in Ohio was called 25 times at work in one day. Multiple Ohio victims claim that the scammers asked specifically for $300 or $2,100 in payment.

Victims in North Dakota and Illinois claim that the caller already knew their names, social security numbers, place of employment, and bank account information, which made them seem all the more legitimate. The scammers claim affiliation with a law enforcement or debt collection agency and then threaten legal action if the victim doesn't authorize a bank account number and money transfer immediately.

Victims of payday loan scams in all three states believe the call originated outside of the United States. Many victims authorized a direct withdrawal and even faxed them a signed promissory note before realizing they had been duped.

North Dakota Attorney General Wayne Stenehjem warned his citizens to be careful about what information they disclose online, and to make sure the business is legitimate before they give them any personal information.

Standard debt collection procedures begin with a phone call, followed by a written notice received via mail within 5 days. The notice should include an exact amount owed. If contacted by an aggressive debt collector, send a written request asking them to send you the terms of the loan in writing, and always wait for a valid response before agreeing to payment. Most importantly, never verify your bank account number.

It is important to know that under the Fair Debt Collection Practices Act payday advance debt collectors are not allowed to threaten arrest, and missed payments are not punishable by arrest. Debt collectors legally cannot make threats, make multiple phone calls, or pose as attorneys or law enforcement to coerce someone into payment.

Cash advance payday loans are a legitimate solution to short term money problems, before signing an agreement always do your research and make sure the company you agree to terms with is a safe and respected organization.