Payday loans have been around for years, making it possible for consumers to access quick 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, don’t offer the timeliness that payday lenders match. With these types of short-term loans, consumers are expected to repay what they borrow in a short time; usually with your next paycheck. Lenders use their own collectors to deal with missed payments, but identity thieves have found their own way of trying to collect on these loans, and sadly, many consumers are falling for it!
Payday loan lenders, also known as “small dollar loan” providers, withdraw loan payments from the borrower’s bank account around the same day the borrower’s paycheck posts into their bank account. In the event that the money is not available for payment, the lender will most likely be willing to make payment arrangements on the loan in an effort to see you successfully repay your loan. If that doesn’t work, then a collector will get involved. Most likely it is someone from the payday loan lending company, or perhaps a third party collector. Lenders will never involve the police or seek out the FBI to recover lost funds.
A recent fraudulent act has identity thieves posing as FBI agents trying to scare consumers into paying off payday loan debt they may not even owe. Using spoofing technology, consumers answer their phones and see “Federal Investigations” on their caller ID. The impersonator on the other end of the line claims to be an FBI agent who has been monitoring the callee’s online activity as a payday loan borrower. 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, if you don’t pay via 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 phonies and have no power to collect any money. In the event that you receive a phone from someone claiming to be an FBI agent who is looking for a payday loan, here are a few things to keep in mind:
*Any money exchanged via bank transfer or prepaid debt card cannot be reversed or traced. It’s just like sending cash, so the caller will ask you to send funds that way. Once you pay them, you will have no chance to get your money back.
*If, in fact, one of these impersonators requests it, hang up and don’t call them back. While you may feel like you want to “set them straight,” it’s not worth getting into a confrontation and risking giving them information 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 caller ID and be correct most of the time at identifying callers, don’t believe it if it says “FBI.” Caller ID 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 owed, and a statement of your rights under the Fair Debt Collection Practices Act. If the “collector” is not willing to provide you with the information you request, hang up. This is a sure sign that they are not legitimate.
