For a while now, we’ve been getting complaints from Credit.com readers about fake payday loan debt collectors. I’m not surprised when I read the announcement this week by Illinois Attorney General Lisa Madigan warns Illinois residents to “be on the alert for scam artists posing as collectors of payday loan debt. The scammers call consumers and threaten them with legal action unless the victims authorize payments from their bank accounts. “Her office has received many complaints.
I recently got a call from someone from a company called Alliance. They called my work number. When I called them back the man said that if I did not pay the loan back they would get me for fraud and breach of contract. I gave them my debit card information. I then did some research. I could not find the company’s information online and the company they said I owed number was disconnected. I cancelled my card and then call Alliance back and asked for a validation letter. The man said they were a paperless company and they could only send Emails. I told him I wanted in writing. Of course he refused and hung up. I got a call from the next day from another guy stating that the card was declined and I needed to handle it right now. I told him not without the letter I asked for. So I hung up. The next day I got a call from a lady stating that this was my final warning and I needed to contact them immediately. I never received the letter or Email and I still can not locate this company by the address they gave me, name or phone number. I was also contacted by another company named D 2 management. They said the same thing that I owed for a pay day loan. The lady identified himself as an officer. I have read online about this company and everyone is saying they are a scam. I have contacted the BBB and consumer affairs so far. I really want to know if these two companies are really scam companies. Please Help!
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Debt Collection Scammer
You will want to monitor your credit carefully
Rudy – Please do not freak out. This kind of thing happens all the time and what you’re saying happened has all the signs of a scam. I do not want to be taken by a scammer. Read this article: 9 Signs You Are Talking to Debt Collection Scammer
I’ve been calling for two months now that we’re going to sue me on 300 dollar case but was charging me 9000 for checking fraud missing on payments so they are tired and are going to serve me at my job and pick me up on this charge that have been brught before me to have never got a check book before online web site is making these aligation against me
Mark – The next time they call them to provide written documentation to validate the debt (to prove the debt even exists). This is a standard procedure when dealing with any debt collector and by law, the collector must comply with this request. In fact, under the Fair Debt Collection Practices Act, if a collector contacts you by phone they have 5 days in which to send you formal written notice that you owe the debt. The notice must include the amount of the debt, the name of the creditor, and your right to dispute the debt, in writing, within 30 days of receipt of the notice.
MANN: The data really suggests that there is a relatively small group of borrowers, in the range of 10 to 15 percent, who have been extremely heavy users, whose predictions are really bad. And I think that group of people seems to fundamentally not understand their financial situation.
“I do not think they’ll be back, because I told them that it’s federal law to send me something written in the mail before trying to collect the debt from me” – Surprisingly, once they know that you know the laws (and better than they do), they typically do back and give up. Thank you for sharing your story, it shows that knowing and understanding your rights can help protect you from being a victim.
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In the end, if they can not answer your questions or validate the debt (in writing), it’s probably a scam. In which case you may not be able to do much about the call but you can report them to your local law enforcement, your state attorney general, and the Consumer Financial Protection Bureau. You may even want to inform the caller that you have taken these steps.
It can be frustrating and embarrassing when debt collectors call relatives, and, as you suspect, some debt collectors use tactics that are not legal. But, as a consumer, you are not powerless. Here are three Credit.com articles you may find useful, and thanks for alerting others to the kind of treatment you have received.
the past several days, some entity claiming they have papers to serve have been blowing up relative relatives. Trying to acertain my whereabouts. The days that I have not worked. No one has been to my doorstep to do, the email i recieved is at best enough to leave skepticism abound, considering the sentence and word structure and does not jive as being official. If you want to see it reply back
Interesting. The fact that they are a “mediation” firm does not exempt them from the FDCPA to my knowledge. Companies that regularly collect debt for third parties are debt collectors, regardless of what they choose to call themselves. I would encourage you to file a complaint with the CFPB and your state attorney general’s office.
As for the other instance, I do not know whether you were scammed or not, but you can certainly do some research to find out whether the collection agency you paid was legitimate. In some states, they must be registered and
MCKAMEY: Everybody that comes in here always comes out with a smile on their face. I do not see anyone come out hollering. They take care of everyone who comes to the T. You have been satisfied, I’m satisfied, and I see other people be satisfied. I never seen a person walk out with a bad attitude or anything.
If a legitimate collector contacted you for a legitimate debt, you could ask them stop
Sorry you let fear overtake your good judgment. You can report it to your state attorney general or you can try filing a report with the Consumer Financial Protection Bureau. However, many of these operations are based outside the U.S. and can be hard to track. And next time – and hopefully there will be no one – keep in mind that you have rights that should be respected.
Edit: I’ve seen that the original debt is “real debt,” and while the original debt may be real, even if you’ve paid in full and can prove it, it gets resold over and over. Check out John Oliver’s story. His show is investigated and these are small-time debt collectors depending on fooling people in paying to avoid legal action that rarely, if ever, happens. He bought $ 14 million in medical debt for $ 60k and erased it for thousands of people being harassed for debts that had been paid.
the phone, because I had not received any correspondence from the company. He told me it was not their responsibility to chase me down to collect a debt, that it was my responsibility to take care of it myself. As their lawyer, I could pay him and it would all go away. I said no, and he hung up on me, laughing, quite rudely, stating, “Have fun rotting in prison.”
t there, “he says.
I did not have any phone calls but my previous room was visited at home by a man named Lewis claiming he had a delivery for me and that he is a server server! She has been to her home several times and she has finally told her to stop her harrassing her as well. He left a fake look business card in which he wrote in his name and tel. # 425-223-8367. I have not called him to verify anything yet. Any suggestions how to handle or proceed with this? Any help is appreciated!
Ok I got a phone call today for my husband. I know he took out a payday loan 2 years ago and it’s with the people these guys claim they are collecting for. They want my debit card number so that my husband is not “served” and go to court or jail for check fraud. My question here is that they can even go for criminal action for a “fraud check” that was not even technically checked since it was all done online. Also, should I just pay them? They said they are Lincoln or the number is 877-607-5668 I have no problem resolving a legitimate debt but I do not want to get scammed either.
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After reading everyone’s comments it sounds like I should not give in giving them money for a PDL I never received. The scary thing is what will happen if I do not ignore this. I mean is there a real legitimate way they can have any impact on my credit or SS # or place of employment?
I received a voice mail today from some guy who identified herself as a “Carl Thomas”. He never told me who he was with or what his business was. He gave me a claim number and said that he had a pending wage garnishment order and a motion to suspend my drivers license. He left a number (877-601-5861 x261) I called the number to meet the guy but the number he gave was not a working number. So I called the number that appeared on my caller ID. A woman answered only by saying “what extension please”. What number did I call and she answered “an answer service”. So I gave the extension. I was connected with “Carl Thomas” and I advised him that I had received a message for someone and that the information he left on the voice was illegal by law debt collection. Carl Thomas got real mad real quick and told me I did not have to tell him how to do his “F # $ King job” and that if I did not give him the god * & am file number that I could go to hell and shove it. So after he hung up on me I called the answer service back and they advised me that it was a company called PDLR with a PO Box in Aurora, Illinois. The number to the “answer service” is 603-486-1900. Hope this helps.
DURBAN, South Africa – Ronald Louw was a human-lawyer lawyer and professor at the University of KwaZulu-Natal, the South African province, which is one of the most affected areas of the world, so he must have known about the dangers of the virus. In April 2005, he was taking care of his mother, who had been diagnosed with cancer, when he realized he had a cough that would not go away. He went to a doctor who treated him with antibiotics.
I have been arrested and jailed on felony charges. I asked for a company name and was told it was the Office of Financial Affairs and was given two numbers … .one that is listed for Nebraska and one for Ohio … ladies call themselves Inspector Stewart and Amy Strickland …… they would not tell me who the alleged lender is other than Direct Lending who is affiliated with cashnet USA, payday lending … ..they had my social number, last known work place and checking actor number as well as my mailing address … .they hung up on me once when I asked questions and then “Inspector Stewart” had to go to someone else when she could not answer my questions and then became rude and told me that I needed to shut up long enough for her to tell me what would happen to me if I don ‘ t settle today out of court … ..they are very convincing except for the fact that I have no loans with anyone like that …… i spoke to my bank to give them a head up
Same phone number only was a Tina, wanted to pay me $ 690.00 to pay off pay day, asked for the original bill said they didn; t have it, gave me 1 week then garnishment called my lawyer yet to hear back.
This is a common tactic that is used to scare you into pay without questioning the validity of the debt. There are laws in place that protect you from debt collectors and they have to abide by those laws (if they are legitimate and not scams). For more on what to do and say when a debt collector calls, this resource will help: What to Do if Debt Collector Calls
Perhaps a solution of sorts-something that is better, but not perfect-could come from more modest reforms to the payday-lending industry, rather than trying to transform it. There are some evidence that smart regulation can improve the business for both lenders and consumers. In 2010, Colorado revised its payday-lending industry by reducing the permissible fees, extending the minimum term of a loan to six months, and requiring that a loan be repayable over time, instead of coming due all at once. Pew reports that half of the payday stores in Colorado are closed, but now everyday payday borrowers are paying 42% less in fees and defaulting less frequently, with no reduction in access to credit. “There’s been a debate for 20 years about whether to allow payday lending or not,” says Pew’s Alex Horowitz. “Colorado shows it can be much, better.”
Other loan features can vary. For example, payday loans are often structured to be paid off in one lump-sum payment. Some state laws allow lenders to “rollover” or “renew” a loan when it becomes so that the consumer pays only the due due and the lender extends the due date of the loan. In some cases, payday loans may be structured so that they are refundable in installments over a longer period of time.
“People this stuff is a SCAM they CAN NOT arrest you for having a faulty payday loan. They first have to take you to court and they CAN NOT contact you by phone to inform you of it. You have to be served from the court house stating when and where the court is and who is being taken to court by and for what reasons. ”
couple months ago stating that I had taken out a loan in Aug of 2012. They said they had papers for me and that I had to pay right away to avoid legal action. They gave me the bank account number and checking account number that the money was deposited in, had my social security number and knew where
DUBNER: Well, Christopher, that defense sounds, at least to me, like pretty weak sauce. I mean, the university writing center does not have as much vested interest in the outcome of my writing as an industry group does for an academic paper about that industry, right?
According to the Consumer Financial Protection Bureau, or the CFPB – the federal agency that President Obama wants to tighten payday-loan rules – 75 percent of the industry’s fees come from borrowers who take over 10 loans per year.
Paul – I know it’s not easy, but stop stressing. These guys are sitting in some of the country’s most popular people as they can. They can not hurt you. So understand that and do not let them scare you.
I have received a call today 10
told me that this has already been passed that and my salary would be garnished. Stating “they have already contacted your employer and we have their tax identification number.” When asked about the “debt” they kept referring to not showing up on my credit report; I was told that it was on there and she was looking at it right now. Once I said that I was monitoring my credit, she flipped
Turn the tables on them. You can report them to the FTC.gov. Give the FTC as many details as you can. If you have applied for a payday loan online in the past, you may need to include the name of that site in your complaint because your information was either sold or compromised and the FTC needs to know where these guys are getting personal information. That information will go into a database that is shared by law enforcement and other governmental agencies.
So far I’ve closed the account and opened up a new one. Put fraud alert on my credit reports and requested from my bank transactions from the years of the CRS Solutions have me the loans were supposedly taken out.
Just received a call from PDLR Recovery systems about a payday loan that was supposedly taken out 2 or 3 years ago and they were willing to settle for $ 500.00. I had originally made an arrangement with them. I then called them to cancel the arrangement at which time they said they were going to call my office and start the garnishment proceedings. After reading your cover page and asking for the actual credit information as well as information to the collection they worked for, they suddenly hang up. Thank you for the advice.
I’ve received calls like this before, where they call me and my work. But, today I got a call from a private investigator named John McCaffrey from 855-656-5010. The message stated that there were charges of fraud being placed against me and my attorney would have to speak about case number # 14831-TX69. He said I was to appear at my local county courthouse to take care of the mater. What was disturbing is that he also called my mother’s phone number and my sister-in-law phone number, leaving the same message from me. The message at their numbers stated that I was to appear in court at their local courthouse. How are I supposed to appear at three different courts for the same case ???? This is how to fishy !!
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