Scams are all over Illinois for payday loans no faxing debt collection. Con artists posing as debt collectors have somehow obtained the phone numbers and personal data of current and former paydayloans borrowers. Bullying and threats of lawsuit and jail are what these pay day loans collectors scamming will do on the phone. Lisa Madigan is the Illinois Attorney General that issued a consumer alert. This was done as the paydayloans debt scam is prominent.
Intimidation and threats used by debt collection scammers
In recent weeks, the Illinois attorney general’s office has fielded a marked increase in consumer complaints about phone calls from bogus pay day loan debt collectors. Recpients of payday loan scam calls used online payday loan company before. Consumer Affairs reports that they had all paid the debt already by the time they got the call. They say the scammers know their names, social security numbers, employer and account with the bank numbers. Victims think that the scammers are real because of all the details the caller has. The scam artists use threats and intimidation, like lawsuits and jail, to dupe them into authorizing a direct withdrawal from their checking account. .
Payday lending lose with this
Scammers hurt more than just Illinois paydayloans customers. 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 just a little bogus. These include Morgan and Associates, Federal Bureau of Investigators, DNR Recovery, DNI Recovery, Legal Accounts Association, Department of Law and Enforcement, CashNet USA, America Legal Services, Payday advances and ACS. Most of the names are fake. CashNet USA is one of the only real ones. On its website, CashNet USA has posted a warning about the scam.
Debt collection harassment is illegal
Debt collectors can’t call between 8 am and 9 pm as outlined by the FTC’s Fair Debt Collection Practices Act. They also can’t demand more money than what is owed, reveal a consumer’s debt to a third 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. 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.
Find 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
