Payday loans have been around for years, making it possible for consumers to access fast cash without worrying about creditworthiness or approval wait times. Financial emergencies often require money in a hurry, and most “traditional” lenders, such as banks and credit unions, do not offer the timeliness that equates to payday lenders. With these types of short-term loans, consumers are expected to pay back what they borrow in a short period of time; usually with your next paycheck. Lenders use their own collectors to deal with late payments, but identity thieves have found their own way to try to collect on these loans, and unfortunately many consumers are falling for this!
Payday loan lenders, also known as “small dollar loan” providers, withdraw loan payments from the borrower’s bank account on or around the same day that the borrower’s paycheck enters their account. bank. In the event that the money is not available for repayment, the lender will most likely be willing to make repayment arrangements on the loan in an effort to successfully repay it. If that doesn’t work, then a collector will get involved. Most likely it is someone from the payday loan company or perhaps an outside debt collector. Lenders will never involve the police or look to the FBI to recover your lost funds.
A recent fraudulent act has identity thieves posing as FBI agents trying to scare consumers into paying off payday loan debt they don’t even owe. Using spoofing technology, consumers answer their phones and see “Federal Investigations” on their caller ID. The copycat on the other end of the line then claims that he is an FBI agent who has been monitoring the caller’s online activity as a borrower of a payday loan. While the unsuspecting victim on the phone may or may not have a payday loan account, the thief posing as an FBI agent will threaten legal action, and even jail time, if it is not paid by bank transfer or prepaid debit card. These thieves may even have access to a person’s address, workplace, or social security number.
Consumers should know that regardless of the loans they have, these so-called FBI agents are frauds and have no power to collect any money. In the event that you receive a phone number from someone claiming to be an FBI agent seeking payday loan cancellation, here are a few things to keep in mind:
* Any money exchanged via bank transfer or prepaid debit card cannot be reversed or tracked. It’s like sending cash, so the caller will ask you to send funds that way. Once you pay them, you will have no chance of getting your money back.
* If you are indeed requested by one of these imitators, hang up and do not call him back. While you may feel like you want to “clear up” them, it’s not worth getting into a confrontation and risking giving them information that they can use against you later.
* Be sure to report the incident to your local police department; especially if you feel threatened.
* While you may have a Caller ID and are correct most of the time at identifying callers, don’t believe it if it says “FBI.” Caller spoofing has made it possible for perpetrators to pretend to be anything from representatives of your utility company to immigration authorities.
* If you decide to speak to the caller, ask them to provide an official “validation” of the debt. They are required by law to do this and include the name of the creditor, the amount of the debt, and a statement of your rights under the Fair Debt Collection Practices Act. If the “collector” is unwilling to provide you with the information you request, please hang up. This is a sure sign that they are not legitimate.
