Last month, The Better Business Bureau (BBB) issued a national alert warning consumers to beware of phony debt collectors who contact you claiming to be lawyers with intent to sue. The scammers call your home,  and according to the BBB they are armed with the potential victim’s personal information, including  Social Security Numbers, old bank information, driver’s license numbers,  home addresses and even the names of personal friends. They claim to be lawyers with the “Financial Accountability Association” or the “Federal Legislation of Unsecured Loans” and they are telling potential victims to pay $1,000 immediately via bank wire or credit card, or they will be arrested and be extradited to California to stand trial within the hour. 

The selection of potential victims seems to be connected to individuals who have taken out a payday loan in the past, which is a  high-interest short-term cash advance intended to cover expenses until the holder’s next payday. According to the Better Business Bureau, thousands of people who have used payday loan services may have had their personal information compromised as a result of a data breach.

We here at Creditinfocenter have certainly made our voices clear about how we feel regarding the services of payday lending companies, so this news feels a little like karma rearing its ugly head. As if another reason was needed to discourage the use of payday loans — well, here it is, although a data breach can (and does) occur at almost any type of financial service company.

The scammers have been reportedly calling from a variety of phone numbers including the following numbers:  (949) 468-5107, (415) 200-0274, (415) 200-0274, (213) 784-5745 and (408) 715-1614. If you get a suspicious call from an individual claiming to be attempting to collect on an outstanding debt, the BBB provides the following advice:

• Ask the debt collector to provide official documentation which substantiates the debt.
• Do not provide or confirm any bank account, credit card or other personal information over the phone until you have confirmed the legitimacy of the call.
• File a complaint with the Federal Trade Commission online if the caller is abusive, uses threats or otherwise violates federal telemarketing laws.
• File a complaint with BBB online if you believe a debt collector is trying to scam you.

If you believe a debt collector is trying to scam you, file an abuse complaint with the Federal Trade Commission (FTC) online at www. ftc.gov, or by telephone at A(202)326-2222 You may also file a complaint with your Better Business Bureau at http://www.bbb.org/ or by telephone at 203-269-2700, extension 2.

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