Illinois has hit some troubles recently. These are mostly pay day debt collection scams. Debt collectors that are really con artists are contacting previous and current pay day loans borrowers with personal data that was stolen. Lawsuits and jail time are the typical threats con artists for pay day loans collectors use. They call on the phone to get a hold of the consumers. The pay day loans debt collection scam has proliferated to the point that Illinois Attorney General Lisa Madigan has issued a consumer alert.
Debt collection scammers go by way of intimidation and threats
Bogus pay day loan debt collectors are the main complaint coming to the Illinois attorney general’s office most recently. Consumer Affairs reports that individuals who have gotten paydayloans scam calls say they’ve taken out pay day loans, most often from online private money lenders, but have paid the debt on time. They say the scammers know their names, social security numbers, employer and banking account numbers. There is so much details known by the caller the victim is forced into believing it is true. To get money out of the victims’ bank accounts, the scammers just have to use threats and intimidation, like 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.
Payday loan company lose business
Scammers hurt more than just Illinois pay day loan customers. Within the nation, scams have popped up all over, says Wallet Pop. These consist of Ohio, Colorado, Florida, Indiana and other states. Madigan said the scammers say they are from a variety of bogus companies, like 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 and ACS. These names tend to be fake. However, CashNet USA is real. Scam warnings are on the site for CashNet USA right now.
Not legal to do debt collection harassment
Debt collectors can’t call between 8 am and 9 pm according to 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 3rd party or threaten lawsuits or arrest. Madigan’s office has reports of many 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.
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
