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Payday loan scum Bags Stealing from Legitimate Licensed Payday Loan lenders
Payday loan lender Advance America is pissed off about unscrupulous call center bill collectors calling borrowers, posing as employees of Advance America and threatening these borrowers with jail time if they don’t pay up quick!
These call center scammers gain access to lists of consumers at black listed websites; often gaining employer, bank account and social security information. Then, it’s simply a matter of dialing for dollars.
“This is Bobby at Advance America. I need you to wire me $300 immediately of you will be arrested and jailed.”
These scumbags often use the names of well known payday loan companies like Advance America to create a sense of legitimacy in the mind of the borrower.
Borrowers who suspect they are being “had” by these scumbags” should visit: http://www.onlinelendersalliance.org/default.asp?page=OLASeal and report any suspicious activity. OLA will attempt to help you.
Tips from OLA for borrowers:
- Never borrow more than you can afford.
- Avoid taking out loans with multiple lenders.
- Get the most bang for your buck.
- Always remember the website you got your online, short-term loan from.
- Keep any paperwork, emails, contacts and other information you receive from a short-term lending company.
- Don’t submit personal information, such as your Social Security number, to companies that are not OLA members.
- Get credit counseling help.
- Know who to contact if you think you’re being harassed by illegitimate debt collectors.
- More Consumer Resources
- OLA Consumer Hotline
- Have an issue with a fraudulent lender? Call the OLA Consumer Hotline at 1-866-299-7585 and speak with a live operator who can assist you in reporting fraud and navigating the online lending landscape.
- Report Fraudulent Debt Collectors Online
“We are very concerned about protecting consumers. Scam artists pretending to be legitimate debt collectors or law enforcement officials are terrorizing consumers, causing unsuspecting victims to lose thousands of dollars. These actions are in direct violation of the Fair Debt Collection Practices Act. OLA has been working with federal, state and local agencies in an attempt to bring these individuals to justice, but we need your help!”
Report fraudulent behavior here: OLA Helpline
Warning Signs Your dealing With a Scum Bag Scammer
Learn the signs of a scam
Debt collectors cannot be abusive, unfair or deceptive in trying to collect a debt. Debt collectors cannot threaten consumers with arrest or jail time if they don’t pay their bill. If someone claims you will face criminal prosecution unless you immediately wire them money, you’re taking to a scumbag collector.
Scammers may also claim that you have been pre-approved for a loan, and then require you to purchase a prepaid debit card or wire money as a “processing fee” or “good faith deposit.” Others may really be identity thieves out to get your personal or financial information.
How to Avoid Scams:
In addition to understanding how lenders and bill collectors can operate, consumers should also take steps to protect themselves, including:
- Never give personal information such as your Social Security number or bank account information online or over the phone without verifying that you are working with a legitimate lender or bill collector.
- To verify, call the establishment back using a known number, such as the number listed on your statement or on the back of your credit/debit card.
- Be suspicious of any email with urgent requests for personal financial information. If an email demands immediate action or makes upsetting or exciting false statements, it’s likely a scam.
- Verify company licenses when applying for a loan online. Legitimate lenders will display state licenses on their websites to verify that they are full-service, licensed lenders complying with state and federal laws.
- Never wire money or provide prepaid debit card information to a lender claiming you have been pre-approved for a loan and must make an initial payment as a “show of good faith.”
- Keep anti-virus, anti-malware, and spam email protection software up to date on all your computing devices.
- Maintain a record of all outstanding debt, and include lender contact information.
- Regularly check your bank, credit and debit card statements to ensure there are no unauthorized transactions. Likewise, check your credit report (using Equifax, Experian, or TransUnion) every four months on a rotating basis; credit reports are often one of the first places where signs of identity theft or fraud will appear.
- If someone approaches you claiming you owe them a debt, demand they provide written proof of the debt as the law requires – especially if it’s for a charge you don’t recognize.
Are you a payday loan lender? Get help running your business here: Payday Loan Bible