Scammers Target Former Payday Loan BorrowersLaw enforcement officials around the country are reporting that consumers who have applied for or received payday loans in the past are being targeted by scammers posing as debt collectors, federal agents, attorneys and even police officers.

The scammers are targeting low-income individuals and other vulnerable populations claiming that they are trying to collect on a payday loan that they took out and failed to repay.  Some victims of the scammers have remitted payment to the fake debt collectors even if they never took out a payday loan because they were afraid of being arrested like some of the scammers threatened.  Debtors who have applied for or received payday loans in the past need to protect themselves from these scammers.

Below are few tips on how to do just that:

  1. Keep records of any type of debts you have incurred and paid off.  When someone claiming to be a debt collector contacts you check your records and if you have no record of taking out a payday loan (or other loan they claim to be collecting on), then you know for sure that their claims are fraudulent.
  2. If you receive a call from someone claiming to be a debt collector for a payday loan lender demand that they provide proof that you in fact owe the payday loan.  They are required by law to provide written proof that you owe a debt. If they fail to do this, do not remit any money to these individuals.
  3. If someone claiming to be a debt collector threatens you with arrest because you failed to pay a payday loan or any other debt, they are in violation of the law.  You cannot be arrested for failing to pay a debt.