Officials warn of payday loan collection scam

Page Last Updated: Tuesday July 27, 2010 6:57am PDT

MyNews4.com - The office of the Attorney General is warning consumers of a payday loan collection scam. Nevadans have been receiving telephone calls from people claiming to be from the "Federal Government of Crime and Prevention," "Criminal Bureau of Identity," and other fake governmental names.

You can take precautions to avoid being scammed by these payday loans. If the caller claims that a debt is owed on a payday loan such as "Advance Cash USA" and other fake companies, don't buy in.

Also, if callers are posing as lawyers, law enforcement officers, investigators, or federal agents and refuse to disclose their real names and addresses, you are being scammed.

Callers will use scare tactics such as claiming they will file a lawsuit or threaten to take action to put you in jail. The Attorney General says this operation is a scam, probably operating outside the United States.

If you receive a call that has any of these warning signs, simply hang up. It is important to remember regardless of what information they may give you, the caller is just trying to scare you into wiring money.

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COMMENTS

PAYDAY L.

July 29, 2010 8:27am PDT

Mark as Offensive

It is unfortunate that some disreputable payday lenders are part of this scam. CFSA's Best Practices ensure that member companies hold themselves to a higher standard of responsible service and help customers to make better financial decisions. They display their fees, prohibit rollovers to no more than four times, and offer an Extended Payment Plan for those customers who cannot pay back the loan on time. It is important to distinguish between reputable payday lenders - members of CFSA - and discreditable lenders.