Scams are all over Illinois for pay day loan debt collection. Debt collectors that are really con artists are contacting former and current payday loans no fax borrowers with personal data that was stolen. The phone is what the false payday loans no fax collectors use to call and bully these individuals by threatening jail time and lawsuits. There is enough of a payday loan collection scam in Illinois that a consumer alert was even given by the Attorney General Lisa Madigan.
Debt collection scammers like to threaten and intimidate
Lately, there has been a lot more complaints about bogus payday loans no fax debt collectors. These came into the Illinois attorney general’s office. Recpients of payday loans no faxing scam calls used online payday loan companies before. Consumer Affairs reports that they had all paid the debt already by the time they got the call. The details known by the caller includes social security numbers, employer, account with your bank numbers and names. Because the con artists have such sensitive personal info, their victims often believe the debt collectors are legit. To get money out of the victims’ bank accounts, the scammers just have to use threats and intimidation, such as 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. The consumer’s sign promissory notes occasionally too. These are then sent in a fax to the fake collectors.
Legitimate payday loan companies compromised
More individuals are getting hurt by debt collection scammers. Illinois payday loans no faxing customers aren’t the only ones. Scams just like this payday loan scam are showing up, reports Wallet Pop, in Ohio, Colorado, Florida, Indiana and other states. Scammers say they are 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, Emergency money 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.
Debt collection harassment isn’t really legal
The Fair Debt Collection Practices Act protects consumers. Debt collectors can’t even call between 8 am and 9 pm. Threats like lawsuits or arrest aren’t things they can do. Also, they can’t ask for more money than owed or tell a 3rd party about a consumer’s debt. 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. 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.
Further reading
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
