One of the things you can count on from a payday lender is that, if you don’t make good on your payday loan, they will do everything they can to collect. While most payday lenders operate within the law in this regard, there are some that have had controversial collections practices. Payday lenders, like many other creditors, will hound you severely until they get the money that you owe them.
Unfortunately, there are scam artists out there that will also pretend to be collecting for a payday lender (or for credit card companies or other types of credit, as well). In reality, they’re nothing but thieves trying to separate you from your money.
To avoid getting scammed by a collection agent or someone pretending to be a collection agent, here are some things you should know:
– Know your rights. Under federal law, there are things that collection agencies can and can’t do. They can’t make threats against you. They can’t pretend to represent someone they’re not. One collection company in Kansas is said to have pretended to be calling from the State Police. These practices are illegal.
– Know who’s calling. Anyone trying to collect a debt from you has to identify the name of the company they’re calling from, as well as provide you with their street address. Don’t agree to talk to anyone who won’t provide you with this basic information.
– Know what you owe. Most of the time, when someone from a collection company calls, you know what it’s for. If the person on the other end of the phone is talking about debt that you don’t remember or aren’t aware of, they may be scamming you. A common tactic is to claim that you’ve bounced a check and then ask for checking account information to collect the money from the check.
– Know how to be safe. Don’t give out personally identifying information over the phone. Unless you’re 100 percent sure the caller is legitimate, you may be the target of identity theft.
– Know how to respond. You can report suspicion of scams to the Federal Trade Commission via their website. The same goes for legitimate collection agencies who don’t follow the laws regarding collection.…