Payday Loan Collection Scams
If you’re one of the millions of payday loan consumers out there, BEWARE!
Collection company agents are scamming payday loan users out of their hard earned cash.
The Kansas Attorney General, Steve Six, reports that Kansas residents are complaining about collectors calling with claims that the consumer took out an Internet based payday loan and never repaid it.
There are unsubstantiated claims by residents of other states as well.
Some of these payday loan collection agents are posing as law enforcement officers! It’s not uncommon for these collectors to threaten consumers with jail.
Payday loan consumers should be aware that their is no debtor’s prison in America.
These scam artists often identify themselves as ACS, National Affidavit Processing Department and United Financial Crime Division. The calls may be originating offshore.
It’s not unusual for the payday loan collection agents to have the ability to provide their victims with personal data including social security numbers and bank account information; even computer IP numbers.
Western Union appears to be the preferred method of payment requested of the consumers.
If contacted, consumers should demand a written notice specifying the amount of the debt, the name of the payday loan company, contact information of the payday loan company, and validation of the debt.
We advise the consumer to immediately determine if the payday loan company is licensed in the consumer’s state! If not, do not pay!
One last point; our readers should not conclude that these collection scams are singularly focused on the payday loan industry. These vultures ply their wares in virtually every financial product offered in the marketplace today.