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 pay day loan, most often from online personal loan company, but have paid the debt on time. Scammers knew all sorts of info on the consumers in the call. This incorporated names, social security numbers, and employer and bank account numbers. Because the con artists have such sensitive personal details, their victims often believe the debt collectors are legit. To get money out of the victims’ bank accounts, the scammers just have to use threats and intimidation, such as lawsuits or jail. Lawsuits or jail are just two of the threats and intimidation, that are used by the scammers. They use this to get withdrawals made from victims’ bank accounts. Sometimes, consumers are tricked to sign promissory notes and fax them to the bogus collectors.
Hurting actual personal loan companies
Scammers hurt more than just Illinois paydayloans customers. In the nation, scams have popped up all over, says Wallet Pop. These contain Ohio, Colorado, Florida, Indiana and other states. Bogus companies, such as 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 today and ACS, are where Madigan says the scammers claim to be from. These names tend to be fake. However, CashNet USA is real. There has been a warning posted from CashNet USA. This can be found on its website.
Debt collection harassment is illegal
The Fair Debt Collection Practices Act protects consumers. Debt collectors can’t even call between 8 am and 9 pm. Other things they can’t do contain asking for more money than is owed, tell a third party about consumer’s debt or even use threats. 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. Madigan gave some advice for anybody 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.
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
