Scam Based on Payday Loan Defaults

Leader-Telegram  
August 5, 2009

The Better Business Bureau has issued an alert, warning Americans all across the country about a fraud involving debt collections on payday loans. Scam artists masquerading as attorneys are contacting consumers, claiming that an individual is in default on a payday advance and will be placed under arrest unless he or she authorizes a wire transfer of money or provides banking or credit card numbers to settle the debt. The criminals have personal information about their potential victims and use this information, along with a purported affiliation with official-sounding organizations such as the "Financial Accountability Association" and the "Federal Legislation of Unsecured Loans," to dupe their marks.

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