Payday Loan and Cash Advance Collection Tips

By | Nov 8, 2010

Another Debt Collector Charged With Fraud

Reminder, if you’re attempting to collect a debt, don’t tell the debtor you’re a police officer, a lawyer or any other government official.

AIG and youphoto © 2008 Seth Anderson | more info(via: Wylio)An Oklahoma headquartered cash advance company, Federal Cash Advance of Oklahoma LLC (aka CASHMAX, Fed Cash, TOPCASH, Cash Service Center) is alleged to have sent deceptive collection letters to debtors that contained a Dallas Texas County clerk’s office forged signature and bore the official seals of Texas and Dallas County. Allegedly, the letters also contained phony court case numbers and included inappropriate criminal allegations.

As a payday loan company performing collection activities, you must remember that unsecured debt is generally a civil matter and not a criminal matter. Apparently there are still plenty of us who don’t understand this! Do Not misuse the term ‘criminal prosecution’ to pressure payday loan customers into making their payments. These strategies are not legal.

In the case of Federal cash Advance of Oklahoma LLC, the notice letters illegally threatened criminal prosecution, referenced phony “case numbers” and cited fictitious criminal penalties of up to five years in prison and heavy fines.

The Texas Attorney General has sued a the payday lender that misrepresented itself as a government agency in some mailings.

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2 Comments so far
  1. Bob Wolfberg November 25, 2010 11:05 pm

    Administrator,

    Why did you use a photo of a PLS store when the story is about Fast Cash Advance?

    Bob

  2. admin December 6, 2010 12:04 am

    Sorry Bob!!! We goofed! We’ll fix it.

    Jer

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