LINCOLN – The Nebraska Department of Banking and Finance is warning residents to beware of a currently popular debt collection scam in which individuals call people to demand payment of an old “payday loan” and then threaten them with possible arrest or court action if they do not immediately send payment.
Calls to the Nebraska Department of Banking and Finance reveal many Nebraskans are receiving threatening phone calls from a fraudulent debt collection scam. Before making a call, scammers gain access to personally identifiable information, including Social Security Numbers and old addresses, and use this information to attempt collection on an alleged old payday loan debt.
The scammers use differing company names as the source of the old payday loan debt and for the collection company they represent. The scammers avoid using the same company name in separate calls to avoid identification. The scammers often require some type of electronic payment by credit card, debit card, prepaid money card, or ACH, in order to complete the transaction quickly. The callers are often able to display a local area code but are actually located in a different state or country.
The following signs will help consumers spot this debt collection scam:
- Aggressive language requiring immediate action.
- Refuses to send proof of the debt and simply saying that they have the debt “in front of them”.
- Caller states they are in the legal department (or some other specific department) and can’t transfer the call to another department, manager, or other company personnel.
- Stating the debt is from more than 5 years ago.
Consumers are encouraged to follow these tips when dealing with this type of phone call:
- Ask the collector for their name, company, address, and phone number.
- Refuse to discuss any debt until written proof of the debt, and right to collect the debt, is received.
- Do not make any payment, even a partial payment, until you receive the written information.
- Do not give out any personal information, including your email address.
- Keep records of your interactions with any debt collector.
- Verify court orders independently and directly with the court.
- Consult an attorney as needed.
Under the Nebraska Fair Debt Collection Practices Act, and the Federal Fair Debt Collection Practices Act, Nebraskans have rights that protect them from harassment or abuse in connection with the collection of the debt, nor can debt collectors make false or misleading statements.
To report fraud visit: http://www.ndbf.ne.gov/consumers/complaint.shtml
© Many Signals Communications
MOST VIEWED STORIES
Effingham woman killed Friday in Atchison wreck
One hospitalized, one jailed, after Atchison attack
Atchison man involved in fatal NW MO crash
One injured in Nemaha Co wreck
Wetmore man arrested on child sex-related charge
Walnut Township Treasurer removed; votes unofficial until canvass
Rural Horton man arrested on multiple drug charges
Street lights to be discussed at Monday city meeting
Meteorologist Spencer: Geometric Watch means electronic disruptions
Two file to challenge local legislator
USD 430 Board accepts resignations, approves new hires
TX man to stand trial on charges in fatal Jackson Co crash
Local judge files for re-election
Atchison in running for national fireworks honors
Truck fire at CGB facility in Falls City
Services set for Effingham woman killed in crash
BC's Pate remembered by students, college family
LATEST STORIES
Results from SE Nebraska contested Primary Elections
U.S. 36 work in Doniphan Co to impact motorists
Senator Ricketts staff to visit Falls City and Auburn
Richardson County Sheriff provides updates to Commissioners
Services set for Effingham woman killed in crash
Marshall Co Commissioner files for re-election
Contested races in Tuesday Primary Election in Nebraska