Numerous pay day debt collection scams around right about now

Illinois has hit some issues lately. These are mostly payday loan debt collection scams. Current and former payday loan borrowers have had their personal information stolen by con artist debt collectors. Lawsuits and jail time are the typical threats con artists for payday loans no fax collectors use. They call on the phone to get a hold of the consumers. The payday loan debt collection scam has proliferated to the point that Illinois Attorney General Lisa Madigan has issued a consumer alert.

Debt collection scammers use threats and intimidation

Bogus payday loans no fax debt collectors have been the main complaint coming to the Illinois attorney general’s office lately. Consumer Affairs reports that individuals who have gotten pay day scam calls say they’ve taken out paydayloans, most often from online payday lenders, but have paid the debt on time. Scammers knew all sorts of details on the consumers within the call. This incorporated names, social security numbers, and employer and bank account numbers. There is so much details known by the caller the victim is forced into believing it is true. 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 lenders lose business

Illinois pay day customers aren’t the only ones getting harassed by debt collection scammers. Wallet Pop reports that the pay day loans scam calls have surfaced in Ohio, Colorado, Florida, Indiana and other states around the nation. Scammers say they’re from places that are just 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. The names are all fake, well, for the most part. CashNet USA is one of the only real ones. There has been a warning posted from CashNet USA. This can be found on its website.

Illegal debt collection harassment being done

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.. 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 many reports. Illinois TV station WIFR reports that Madigan offered some advice for individuals if they’re contacted by the scammers.

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