Spotting Payday Loan Scams – Part 1

Payday Loans are maligned by scammers, not lenders

Many people are apprehensive of payday loans due to the bad name that media has given to them.

Little do they know that payday loans are getting bad name because of scams that scammers name as payday loans. Acts of scammers create problems for good lenders.

Therefore, we tell you how to spot payday loan scams.

1 Threat of Arrest

Most scammers are overseas and you can never recover your money if you pay them.

Scammers can threaten you with an arrest if you do not pay. They may say sheriff can come to your house same day.

Scammers misinterpret the clause 692e (4) of FDCPA to scare you.

2 Caller fails to identify the name of his collection agency

There is no legitimate reason for the caller to withhold the name of the collection agency he/she works for. His refusal to reveal the name or failure to tell a name is a sign of fraud.

Even if he/she does name the collection agency, it may often be a fake name, or nothing more than letters.

You should ask what the letters in the agency's name stand for. Often you will not get an answer.

If the caller does give a name, search it on Google and see what comes up. You will often see reports of others who have been victimized by the same company.

3 Did the caller state he was attempting to collect a debt?

Sometimes, it is easy for you to figure out the that the caller is a scammer.

Sections 1692e(11) states the following to be a false and/or misleading representation:

“The failure to disclose in the initial written communication with the consumer and, in addition, if the initial communication with the consumer is oral, in that initial oral communication, that the debt collector is attempting to collect a debt and that any information obtained will be used for that purpose, and the failure to disclose in subsequent communications that the communication is from a debt collector.”

4 Any validation mail?

Fake collection agency will not send a validation letter within 5 days of the initial phone call.

The FDCPA requires that, within 5 days of the initial phone call, a debt collector must send a letter to the alleged debtor containing following things:

1. Amount of the debt

2. Creditor to whom it is owed

3. You have a right to dispute the validity of this debt within 30 days of the notice or it will be presumed to be valid by the collector.

4. If you do dispute it in writing, the debt collector will obtain verification of the debt.

5 Google the phone number

If you have a caller ID, you can see the

phone number from the caller and note

it down.

Search the number on Google and you

will see the stories of people being

scammed.

6 Caller refuses to provide agreement in writing, insists on payment

Never agree to any payment arrangement without getting it in writing.

Payday loan scams involve getting your payment information as fast as possible and putting it to use as fast as possible.

NEVER reveal your credit card or checking account information over the phone.

If you believe it could be a legitimate attempt to collect money from you, consult with a qualified consumer attorney in your area or go to www.naca.net and search its directory.

7 Caller won‘t provide address to mail payment

You can see a sign of fraud if caller refuses to provide an address and insists on payment over the phone.

The caller may even offer you a reduced amount if

you pay right away over the phone.

Legitimate debt collectors might press you to

make payments over the phone, they will also

accept payments by mail.

But a scammer will never accept payment via mail.

8 Is debt collector registered in your state?

Many states require consumer debt collection agencies to register prior to engaging in debt collection within those states.

Check to see if this company is registered in your state.

If the agency that called you is registered, check if the registration is active or expired.

9 Did you receive any summons /complaint

Some payday scammers use fake legal documents to coerce their victims into paying.

It might show up as a civil lawsuit or it may be a criminal complaint.

If you get any such document, consult with a consumer lawyer in your area to see if the summons and/or complaint are real.

If they are fake, you may be entitled to damages under the Fair Debt Collection Practices Act.

Contact us for authentic Payday loan at:

www.1stratelenders.com

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