Debt Collection Scams

by Donald Petersen on April 5, 2011

Debt collectors who collect payday loans are often extremely abusive.
Payday loan debt collectors often threaten to sue, serve process, file criminal charges, or threaten jail or prison time. It is surprisingly common for payday loan collectors to call consumers’ friends, relatives, and place of employment.

The appropriate response to most of these payday loan debt collectors is to find an experienced FDCPA lawyer and file a debt harassment lawsuit.

There is also a new breed of payday loan collector. In December, 2010,
the Federal Bureau of Investigation warned consumers to beware of debt collection scams involving delinquent payday loans.

The Internet Crime Compliance Center (“IC3″) reports that :

“The callers purport 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.”

The scamsters have accurate information about the consumer and the payday loan including the consumer’s Social Security Number,
date of birth, address, employment information, bank account numbers, and credit references (i.e., names and telephone numbers of relatives and friends.) The scam artists may be obtaining this information through “phishing”, fake websites or web pages or even data breaches.

Do NOT pay the scamster! According to the FBI :

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

If you receive telephone calls such as these, you should request the collection agency’s address and promptly send a validation letter requesting that the collection agency verify or validate the debt.

Consumers who receive such calls also promptly contact an experienced debt harassment lawyer.

If you are a Florida consumer who is receiving calls from a debt collector who is demanding that you pay a payday loan account, you are welcome to contact me using the Collection Harassment Contact form in the right hand column or call my office.

If you live outside Florida, you are welcome to complete the Collection Harassment Contact Form and I will try, as a courtesy, to provide you with the name(s) of experienced debt harassment lawyers who are licensed to practice law in your state.

(C) 2011 Donald E Petersen
All rights reserved

{ 3 comments… read them below or add one }

B. D. Bell April 7, 2011 at 11:45 PM

My sisters is being harrassed by a Florida Collector calle Elite Mediation Check Divison.. who are they? Need to stop the harssment.

Reply

christopher August 28, 2012 at 7:16 PM

I got a called today and 4 days ago stating that they will issue a warrant out for my arrest and charge me with 3 different type of felonies. They never came to my apartment or job to collect the vehicle and it was in plain site for them to reposses. They also said they will suspend my license, is this illegal?

Reply

Don Petersen August 29, 2012 at 4:52 AM

Christopher – It’s difficult to envision a situation where a debt collector could obtain an arrest warrant but a couple of states outside Florida do have such a process. I urge you to consult with a consumer lawyer who is licensed to practice law in your state.

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