A paydayloans debt collection scam has been victimizing consumers in Illinois. Stolen personal info has reached the hands of con artists. These con artists then use personal and data from current and previous payday loans no fax borrowers to make a scam. Reaching their targets on the phone, the fraudulent paydayloans 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 since the payday loans debt scam is prominent.
Threats and intimidation are what debt collection scammers tend to use
In recent weeks, the Illinois attorney general’s office has fielded a marked increase in consumer complaints about phone calls from bogus pay day debt collectors. Recpients of payday loan scam calls used online payday loan companies before. Consumer Affairs reports that they had all paid the debt already by the time they got the call. Scammers knew all sorts of info on the consumers in the call. This integrated names, social security numbers, and employer and account with the bank numbers. Because the con artists have such sensitive personal details, their victims often believe the debt collectors are legit. The scam artists use threats and intimidation, like 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 loan companies lose business
Illinois payday loans no fax customers aren’t the only ones getting harassed by debt collection scammers. In the nation, scams have popped up all over, says Wallet Pop. These include Ohio, Colorado, Florida, Indiana and other states. Scammers say they’re from places that are a little bogus. These contain 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. These names tend to be fake. However, CashNet USA is real. Scam warnings are on the site for CashNet USA right now.
Debt collection harassment is not legal
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.. Other things they can’t do include asking for more money than is owed, tell a 3rd party about consumer’s debt or even use threats. Madigan’s office has reports of numerous victims of the payday loan scam payday hundreds of dollars because of it. Madigan gave some advice for 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 info 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
