Illinois has hit some issues recently. These are mostly payday loan debt collection scams. Con artists posing as debt collectors have somehow obtained the phone numbers and personal data of current and previous payday loan borrowers. The phone is what the false pay day collectors use to call and bully these people by threatening jail time and lawsuits. Lisa Madigan, Illinois Attorney General, issued a consumer alert because of how bad the payday loan debt collection scam has become.
Debt collection scammers use threats and intimidation
In recent weeks, the Illinois attorney general’s office has fielded a marked increase in consumer complaints about phone calls from bogus paydayloans debt collectors. Consumer Affairs reports that individuals who have gotten payday loan scam calls say they’ve taken out payday loans, most often from online payday lender, but have paid the debt on time. Scammers knew all sorts of details on the consumers in the call. This incorporated names, social security numbers, and employer and account with your bank numbers. Victims think that 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. The bogus collectors often like to get promissory notes signed by these consumers.
Legitimate payday loan store compromised
Scammers hurt more than just Illinois pay day loans customers. Wallet Pop reports the paydayloans scam calls have surfaced in Ohio, Colorado, Florida, Indiana and other states around the nation. 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, Cash til payday and ACS, are where Madigan says the scammers claim to be from. The names are all fake, well, for the most part. However, CashNet USA is real. Scam warnings are on the website for CashNet USA right now.
Illegal debt collection harassment being done
Under the FTC’s Fair Debt Collection Practices Act, it is illegal for debt collectors to call before 8 a.m. or after 9 p.m.. They also can’t demand more money than what is owed, reveal a consumer’s debt to a 3rd party or threaten lawsuits or arrest. The payday loan scam made it so victims had to pay hundreds of dollars. These reports came in to the Madigan office in numerous reports. WIFR, which is an Illinois TV station, showed advice for if consumers are contacted by scammers that come from Madigan.
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.
Further reading
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
