Back to Back Issues Page
Watch For Scams Newsletter. Telephone Collection Scam Related to Delinquent Payday Loans
March 09, 2011
Hello

Telephone Collection Scam Related to Delinquent Payday Loans

Watch For Scams is dedicated to helping you avoid becoming a victim of fraud.

If you like this ezine, do a friend a big favor and forward this to them. If a friend forwarded this to you, and if you like what you read, please subscribe by visiting the link below:

Subscribe Here

Telephone Collection Scam Related to Delinquent Payday Loans

In these scams, a caller claims that the victim is delinquent in a payday loan and must repay the loan to avoid legal consequences.

The callers pretends to be representatives of the FBI, Federal Legislative Department, various law firms, or other legitimate-sounding agencies. They claim to be collecting debts for companies such as United Cash Advance, U.S. Cash Advance, U.S. Cash Net, and other internet check cashing services.

One of the worst aspects of this scam is that the callers have accurate information about the victims, including social security numbers, dates of birth, addresses, employer information, bank account numbers, names and telephone numbers of relatives and friends.

The method by which the fraudsters obtained the personal information is unclear, but victims often relay that they had completed online applications for other loans or credit cards before the calls began.

The fraudsters relentlessly call the victim's home, cell phone, and place of employment. They refuse to provide to the victims any details of the alleged payday loans and become abusive when questioned. The callers threaten victims with legal actions, arrests, and in some cases physical violence if they refuse to pay.

In many cases, the callers even resort to harassment of the victim's relatives, friends, and employers.

Some fraudsters instruct victims to fax a statement agreeing to pay a certain dollar amount, on a specific date, via prepaid visa card. The statement further declares that the victim would never dispute the debt.

These telephone calls are an attempt to obtain payment by instilling fear in the victims. Do not follow the instuctions of the caller.

If you receive telephone calls such as these, you should:

Contact your banking institutions;

Contact the three major credit bureaus and request an alert be put on your file;

Contact your local law enforcement agencies if you feel you are in immediate danger;

File a complaint at www.IC3.gov.

If you have been a victim of this type of scam or any other Cyber crime, you can report it to the IC3 website at: www.IC3.gov. The IC3 complaint database links complaints for potential referral to the appropriate law enforcement agency for case consideration. Complaint information is also used to identity emerging trends and patterns.

Remember - always watch for scams!

Steve

Back to Back Issues Page