Be on the lookout for payday loan debt collection scams

Thursday, August 26th, 2010 By

seeing through a payday loan debt collection scammer

Consumers can see through the payday loan debt collection scam if they understand their rights, the law and their finances. Thinkstock photo.

A payday loan debt collection scam has been victimizing consumers in Illinois. Con artists posing as debt collectors have somehow obtained the phone numbers and personal data of current and former payday loan borrowers. Reaching their targets on the phone, the fraudulent payday loan collectors use scare tactics such as bullying and the threat of lawsuits and jail. 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

In recent weeks, the Illinois attorney general’s office has fielded a marked increase in consumer complaints about phone calls from bogus payday loan debt collectors. Consumer Affairs reports that people who have gotten payday loan scam calls say they’ve taken out payday loans, most often from online payday lenders, but have paid the debt on time. They say the scammers know their names, social security numbers, employer and bank account numbers. Because the con artists have such sensitive personal information, their victims often believe the debt collectors are legit. The scam artists use threats and intimidation, such as 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.

Legitimate payday lender compromised

Illinois payday loan customers aren’t the only ones getting harassed by debt collection scammers. Wallet Pop reports that the payday loan scam calls have surfaced in Ohio, Colorado, Florida, Indiana and other states around the nation. Madigan said the scammers say they are from a variety of bogus 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 the names are fake. However, CashNet USA is real. On its website, CashNet USA has posted a warning about the scam.

Debt collection harassment is illegal

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. Even so, some victims of the Illinois payday loan scam calls told Madigan’s office that they were fooled into paying several hundred dollars. Illinois TV station WIFR reports that Madigan offered some advice for people if they are 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.

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This post has 28 comments

  1. Debra says:

    Have just recieved call from 8143242010 and they are saying that I owe them money even went to the extreme of calling one of my contacts telling her I borrowed money wouldnt give a company name and teling her that they would file on me i fond out that the company or whatever is Pa and I have never done business with anyone in Pa. the man speaks with a middle eastern accent and given American name

  2. Big Bill says:

    New twist to the never ending calls. They are now saying that they have an order to garnish your wages due to an outstanding payday loan that was never paid. The pay day loan recovery company is ligitamate, however the extortioners are not. I have to go to my bank and have them write a letter stating that I did not receive a pay day loan deposit in my account for 2008 and 2009. What a waste of time. But I promised them that I was going to do everything in my power to bring them to justice.

  3. Dina says:

    I was a victim of this payday loan scam. It was a man with a middle Eastern accent but gave an American name. He used multiple numbers.He is part of a scam where they hacked into the payday loan system and got peoples' personal info. He threatened to put me in jail, that he was a lawyer, and I would never see my kids again. It rattled me till I found out it was a scam. I gave all info to the authorities. When I realized what he did I told him I was hipped to his scam and told him I alerted the authorities and cursed him out. I have not received any further calls from him. In this country we don't extort, punish or jail people for debt. I hope this helps someone else not to go through this.

  4. Lucy says:

    I just got a called from an indian man who said i owe 500.00 in pay loan and i would have to pay 2836.00 dollars or else i go to jail. Heck yeah i was scared. He knew all my information but while he was on teh phone requesting me to write him a letter of aggrement I was typing in the phone number he was calling from and guess what it was a scammr. I called and report it to the ftc and was reading on the laws no matter how much you owe on a payday loan you cannot get arrested!! yeah they be calling again they can leave all the messages they want!

  5. cash converters says:

    Would you mind if I use some of the information here on my website?

  6. amanda says:

    Yes they called me today I live in KY. He claimed he worked for the US dept. of Justice. That I had 300 deposited into my account sometime in 2010 from an American Cash Advance. I've never gotten a payday loan of any kind. This guy knew all of my personal info including banking account number. He also spoke with a very heavy accent I could barely understand. He told me the address he was calling from was 170 Park Row New York City, NY 11040. He said if I didn't believe I owed the money I could come to New York and see for myself he would show me. I laughed and said sure I'm getting on the next flight. When I asked him for documentation he said if he provided me with it I was agreeing to the debt and the judicial process would begin and I would then owe 5000$. He kept saying he was trying to help me and all he could do is wish me luck if I didn't accept his help. It scared me he knew my account info so I put my checking account on hold and am going to close it tomorrow and open another. I have never gotten a payday loan or ever inquired about one online so I have no idea how they got my info. He got kind of angry and started yelling at me when I said the US dept of Justice should hire someone who can speak English well enough for me to understand. He finally hung up on me.

  7. Louis Whitt says:

    I'm in TN. Got the samething going on, but I just got my loans, and neither of which are even due. Guy has same accent, but goes by John Smith from US Divisions.

  8. Guest says:

    These people are outrageous. I am in Cali and they have called me for a while now. So I mostly avoid the number. Then they called today and said I have 3 charges against me. The man had a Middle Eastern accent and there was noise in the background. I kept them at bay long enough to talk to some people and they told me it was a scam. I have payday loans and they are always paid on time as promised. Even now as I am typing this they are contacting me demanding the pay. Well now they will be reported and I will close the account and blocking their number. I refuse to let these people ruin my life so be aware everyone. The call came from Illinois and it's just two people to talk to. One was a woman, the other was a man. If you are taking care of your business, then you have nothing to worry about.

  9. rhi says:

    I just got a call from *SURPRISE* an indian man claiming i was going to be taken to court over a payday loan with quick cash loans blah blah blah…..i’ve gone through this already so, I told him I paid back all my loans, he was a fraud and go ahead and send the supeona. you cant get charged with fraud for this. i even asked him for the phone number to the company that was accusing me. he couldnt give it. i told him, every legit loan i had i paid off, so give me the number, and i will take care of this false claim…..got hung up on

  10. Deborah Ann Delgado says:

    I had several payday loans out only to meet my finances on a monthly basis, my husband is on social security and I lost my job and we are going through some hard times especially now with the economy and now their calling me and threatening me with jail, lawsuits, attorney general and so on………..if I had the money I would have paid my bills, I know what we owe but then I had to close account after account because they would some how get into my accounts and get partial amounts out without us knowing………Now I have no bank account I'm delinquent on my payday loans and now no one will take payments but that's all we can afford right now. Dont' know what to do anymore!!!!!!!!!!!!!!We just need help!!!!!!!!!!!!!!!!!!!!!!!!The Delgado family.

  11. Beverly says:

    I recieved a phone call yesterday from a Mark Anderson, (has an Hindu accent) he was calling from a law firm- Deptartment of Justice??? phone#(786)664-8434..he stated that there would be a warrant due to a past due pay day loan..I asked him who was the payday loan that I owed..he then transferred me to his "Supervisor" named Carlos White (also with an accent)..I asked him for the name of the payday loan company – he told me it was US Payday Cash and the I owed 571.00 (including their fee?) I told him that I would have to call him back..has anyone received a call from them before??? Please let me asap!!!

    • candi says:

      Beverly,
      I was scammed by this Mark anderson from the so called dept of justice.I didnt owe anything and this dirt bag kept calling me and reading me MY social security number.I called the credit reporting agencies and filled out the proper forms to alert them someone had illegally obtained my SS#.They started calling 2 of my sisters cell phones,I still dont know how they got their numbers.But within a few days they had pulled $3275.00 in 5 different ACH charges from my checking account.I went in to my bank and disputed this and within a few weeks had my money back.I immediately put a stop on my debit card and closed that account,and reopened a new one .A week later my bank called me to ask if I had just contacted them about authorizing furthur ACH charges.When I told them no,the bank told me some woman had just called them pretending to be me.She had my social security number,date of birth,home address,every thing except the answer to 2 secret questions and a password I had set up the day I closed my account they stole from.Now they are still calling me,my daughter, and about a month ago one of my sisters again.I have made a police report,ICE report,ect,ect.Best thing to do is avoid the call.IT IS A SCAM.

    • Tasha says:

      I recieved a phone call like that 3 weeks age, talking about i had a 500 and something dollars loan that i owed. He said if i didnt pay that i was going to jail and i would have to pay 8000 and i needed to get a lawyer because i was going to need one were i was going. He had a heavy middle eastern accent goes by the name of MIKE OR MICHEAL WRIGHT. He was very rude but could not tell me the loan place i owed he just said several WHAT KIND OF S….T is that!!! THATS CRAZY, now i have to get everything changed because of these people. And, i stay in Tx

  12. biggredd says:

    If you can put them on hold and tranfere the call to security dept in your company or police dept. its working so far for me. I close my accounts, and my credit is not that great for them to ruin.

  13. Bob says:

    I live in Arizona and got a call from some guy with a foreign accent, Hindu, Indian I believe telling me I owe $5000.00 on a $500.00 pay day loan I never did. He said people were going to come to my home and work and take me to jail. He said don't give them a hard time when they come. Give them a hard time! My ass! My wife has some friends that something similar was pulled on them, but nobody actually came to their home, I also have ID theft protection which I told this guy, but it did not seem to bother him. What do I need to do? Be careful out there. Oh, as far as I know, I never received any calls prior to this or any mail trying to get this so called money I borrowed. Just this idiot calling yesterday threatening me.

  14. Tasha says:

    I live in Al and someone called me up yesterday talking about how they had 3 cases against me and telling me that i was going to go to jail, lose my job, and lose my credit because i had a payday loan in default. This was a Middle Eastern male going by the name of Michael Sinclair. I told him to send me a copy of the paperwork so i can see if the debt is valid then he tells me if you do a loan over the internet there is nothing in black and white. That's a bunch of bull. I went to complain about them to the BBB and they aren't even a business. How can i have a debt totaling $7,000.00 and you're willing to settle for $1,000.00. People please be aware of these fakes and phonies!!!!!! They use all kinds of scare tactics trying to get your money.

  15. JohnsonSmith says:

    If one will give the attention towards the loan and everything related to then he wont get involved in the scams but personal enquiry is required.

  16. WAYNE says:

    They tried to get me,saying they were going to place internet fraud charges on me.They also called my work.She told my co-worker that her name was SANDRA THOMSON,a real nice name for an american woman.Only problem was she was either indian or middle eastern accent.She switched me to a male scammer,who i promptly started to cuss up one side and down the other. THEY HAVEN'T CALLED BACK !

  17. Deana says:

    They are hitting Iowa. I have received several phone calls from a man with a heavy accent that goes by the name Edward Walker. Telling me that I owe money to Cash Usa and if I do not repay i will spend almost $9,000.00 in court cost. He had a New york number his buddy also called with the same accent and goes by the name of Kevin his number is from CA. They keep calling me at work and I keep telling them that I will be terminated for receiving calls at work. They even tried to take out 300. out of my bank account because they had all my information including my debit card number. My debit card is now frozen until I can resolve this matter with my bank and get a new card. I check my bank statements for the past 5 years and not once did I borrow from that company. I am at the end of my rope with these guys.

  18. Kristen says:

    They are hitting Wisconsin now too… I just received a call last night. The guy had a foreign accent and a lot of backround noise. He claimed I owed this company close to $600 but when I asked him what comapny he gave me some company name which I couldn't understand due to the backround noise and when I ask for the specific Payday loan company he couldn't give it to me, he rattled off a few and one of them was CashNetUSA which I had never had a loan through. This person told me that there were criminal charges being filed against me and that I would be taken from my home or place of work and brought to court. The last thing he said was "Good bye and best of luck" what professional person would say something llike that. The phone number he gave me I did a reverse look up on it and it is a cell phone supposedly out of New York. The funny thing was after listening to it sounded it almost Identical to the one my mom recieved over a month ago. I am now checking my credit report, changing everything.

  19. dave says:

    they call me daily

  20. tischad says:

    I have filed complaints with every agency I could possibly file with and these creeps keep calling. They have been calling me for months and I have tried to reason with them but they get biligerent and just keep calling. What can be done about these people? I have flagged my credit reports changed banks and still they keep harrassing me. Someone give me some insight please.

  21. Ndnprincess says:

    They are hitting Oklahoma, as well. They have been contacting me for almost three weeks. Each time bouncing their phone number from different states. They are always foreigners with heavy accents. They threaten to take my home, getting me fired, etc….The first few times they called I got really rude hoping this would stop them, however; it did not. The past few times I have been really nice offering to tell them about my day, asking about the weather, and their personal lives. When I start these types of conversations they get aggravated with me and hang up. Just tonight, I continued calling them back and asking them how it felt to receive phone calls every 5 minutes. They eventually blocked my phone number so that I could not contact them any longer. Who does the public turn to to help them in these situations?

  22. Paige says:

    They are hitting MS too. They have called & called-I don't answer the phone or listen to their messages anymore. I reported this to everyone I can think of but it never helps. Has been going on for months. They will stop for a few weeks then start again using different "names" but always the same- heavy foreign accent, background noise…

  23. Aleshia says:

    They are hitting Washington, they call at my job and my cell phone endlessly I have an FTC complaint against them Oak View Legal Group is the name they give.

  24. Julie says:

    They need to fall off a very tall bridge or cliff. You would think with as much time and effort they put into doing these scams they could use less energy working a job. They are also hitting AZ too.

  25. burt says:

    these jerk's are worse than having hemroids… they cal and call. they even took 30.00 from my checking account forcing me to go to my bank and close out my account. don't be surprised if you see unathorized money removed from your checking accountif you have another account you better transfer quickly. i also filed out a police report and reported it to attorney general.

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