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Payday Loan Debt Collection Scams

In Illinois a payday loan debt collection scam became a real problem for the borrowers. Somehow a scam has obtained the personal information and telephone numbers of current a former payday borrowers and started calling them and threatening with jail and lawsuit. The activity of the payday loan debt collection scam was developing so promptly that Attorney General in Illinois Lisa Madigan had to issue the alert for consumers.

Methods payday loan debt collection scams use

During recent several weeks the Illinois attorney general’s office has received a great deal of complaints from fast cash payday loans borrowers stating that they have become victims of a loan debt collection scam via phone calls. According to Consumer affairs report these victims have obtained short term payday loans in most cases from online payday loan lenders but have paid off their debts timely. From their complaints it became clear that the scammers new the customers’ personal information they usually provide to lenders, i.e. their phone numbers, social security numbers, employment information and savings or checking account number.

The main method of con artists is threatening with lawsuit or jail; they do this to get the direct access to customers’ accounts and be able to withdraw the cash means. Sometimes they manage to trick the customers who fax the signed promissory notes to the bogus collectors.

Compromising of legal payday lenders

Payday loan borrowers in Illinois are not the only victims of debt collection scammers. They actively work in Ohio, Colorado, Florida, Indiana and other US states. When the scammers call to the customers they say they are from various loan lending companies, such as Morgan & Associates, Federal Bureau of Investigators, DNR Recovery, DNI Recovery, Legal Accounts Association, Department of Law and Enforcement, CashNet USA, America Legal Services, Quick Cash and ACS. Most of these names are however fake.

Payday loan debt collection scamming is illegal

According to the FTC’s Fair Debt Collection Practices Act, the debt collectors are not entitled to call the customers before 8 a.m. or after 9 p.m. Also they are forbidden to demand more money than is lent, to reveal the customers’ personal information to the third parties, and to threaten with arrest or lawsuit. The payday loan borrowers should be aware of their rights and be able to protect themselves from payday loan debt collection scams.