Payday Loan Scams

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Payday Loan Scams

The subjects claim the victims are delinquent on a payday loan and must repay the loan to avoid legal consequences. The subjects use coercion techniques such as harassment, threats, and claims that they were representatives of government agencies and law firms. Only some of the victims have reported previously applying for a payday loan, others said they have never made such an application.

The subjects seem to have accurate information on the victims, including social security numbers, dates of birth, addresses, employer information, bank account numbers, names and telephone numbers of relatives and friends.

The subjects refuse to provide any details of the alleged payday loans and become abusive when questioned. Victims are threatened with legal actions, arrests and, in some cases, physical violence if they refuse to pay. Some have been told there was an outstanding warrant for their arrest.

Many reported that subjects have also harassed their relatives, friends, and employers. In a couple of instances, the subjects came to the victims’ places of employment and residences claiming to be process servers.

Over the last couple of months, the scam has evolved from just receiving telephone calls to also receiving official-looking emails supposidly from the United States Attorney. The emails reference the FBI, court proceedings, and serious allegations. Allegations include violation of federal banking regulations such as collateral check fraud, theft by deception, and fraudulently conducting electronic fund transfers.

Recipients were instructed to contact the subject within 48 hours of receiving the email.

If you believe you have been a victim of this type of scam you should promptly report it to the IC3's website at www.IC3.gov. The IC3's complaint database links complaints together to refer them to the appropriate law enforcement agency for case consideration.

Remember - always watch for scams!

Steve