Scams are all over Illinois for pay day loans debt collection. Current and previous payday loans borrowers have had their personal information stolen by con artist debt collectors. The phone is what the false payday loans no faxing 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 pay day debt collection scam has become.
Debt collection scammers go by way of intimidation and threats
Most recently, there has been a lot more complaints about bogus pay day debt collectors. These came to the Illinois attorney general’s office. As outlined by Consumer Affairs, most individuals who have received fraudulent pay day loan calls have previously used an online loan lenders and had already paid their debt. The info known by the caller consists of social security numbers, employer, account with your bank numbers and names. Victims think that the scammers are real because of all the information the caller has. 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 scamm! ers. They use this to get withdrawals made from victims’ bank accounts. The bogus collectors often like to get promissory notes signed by these consumers.
This stops loan company from getting business
Scammers hurt more than just Illinois payday loans no faxing customers. Wallet Pop reports the payday loan scam calls have surfaced in Ohio, Colorado, Florida, Indiana and other states around the nation. Madigan said the scammers say they’re from a variety of 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, Quick cash loans and ACS. The names are all fake, well, for probably the most part. CashNet USA is one of the only real ones. Scam warnings are on the site for CashNet USA right now.
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. Threats such as lawsuits or arrest aren’t things they can do. Also, they can’t ask for more money than owed or tell a 3rd party about a consumer’s debt. Madigan’s office has reports of numerous victims of the payday loan scam payday hundreds of dollars because of it. 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.
Additional 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
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