A payday loans no faxing debt collection scam has been victimizing consumers in Illinois. Debt collectors that are really con artists are contacting previous and current pay day loans borrowers with personal data that was stolen. Reaching their targets on the phone, the fraudulent payday loans no fax collectors use scare tactics such as bullying and the threat of lawsuits and jail. Lisa Madigan is the Illinois Attorney General that issued a consumer alert. This was done because the pay day debt scam is prominent.
Intimidation and threats used by debt collection scammers
Bogus payday loans no faxing debt collectors are the main complaint coming to the Illinois attorney general’s office most recently. Consumer Affairs reports that individuals who have gotten payday loan scam calls say they’ve taken out paycheck 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 account with the bank numbers. Victims think the scammers are real because of all the info the caller has. 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.
Payday lender lose business
More individuals are getting hurt by debt collection scammers. Illinois payday loan customers aren’t the only ones. Wallet Pop reports the pay day 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, like Morgan and Associates, Federal Bureau of Investigators, DNR Recovery, DNI Recovery, Legal Accounts Association, Department of Law and Enforcement, CashNet USA, America Legal Services, Quick payday and ACS. These names tend to be fake. CashNet USA is one of the only real ones. On its site, CashNet USA has posted a warning about the scam.
Debt collection harassment isn’t legal
Debt collectors can’t call between 8 am and 9 pm according to the FTC’s Fair Debt Collection Practices Act. Other things they cannot do include asking for more money than is owed, tell a third party about consumer’s debt or even use threats. Even so, some victims of the Illinois payday loan scam calls told Madigan’s office that they were fooled into paying a number of hundred dollars. Madigan gave some advice for any person contacted by scammers via an Illinois TV station, WIFR.
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.
Discover more information on this subject
Consumer Affairs
consumeraffairs.com/news04/2010/08/il_payday_lending.html
Wallet Pop
walletpop.com/blog/2010/08/26/warning-issued-over-bogus-payday-loan-debt-collector-calls/
WIFR
wifr.com/news/headlines/101497999.html?ref=999
