Phantom debt collectors in the payday lending industry – Part two

Just as many of the large payday companies have become international concerns, so have the conmen that ride on their backs. These days you can take out a payday loan in many different countries worldwide, both with local payday lenders and international corporations. You can apply for a payday loan in a shop in your local shopping center, just as you would apply for a loan in the local branch of your bank, or you can apply for a short-term loan from a payday company online.

The problem stems from the popularity of applying for a payday loan online. When applying for a loan online, or anything online for that matter, you have to give out your personal details. Your banking details, your name, your address, your phone number, your social security number or your passport number, all of this information is now available online for someone to see, and even if you are guaranteed absolute security by the website that you are on, how do you know whether it is a bogus website or a bonafide one?

The Federal Trade Commission in the USA made a major breakthrough in 2012 when they busted a ring of debt collecting scammers working out of several call centers in India. These fraudulent companies were calling people in the USA claiming to be law enforcement officers and threatened to arrest their victims should they not pay up on their debts. One call center made over 2.5 million calls and managed to pull in more than 5 million dollars before they were closed down.

It seems that these tricks have gone viral and with the technology that we have today information is accessible to anyone, anywhere, at any time. It may seem easy and user friendly to pop online and acquire a quick loan, but you need to do your homework before you just throw your details onto the net. Here are some tips on how to avoid being scammed.

  • Most of these phantom debt collectors don’t hold up under questioning. Ask them which company they work for, what company they are representing, and for the phone number and address of that company
  • Hang up and call the company that you took the loan out from in the first place to find out if they have sent debt collectors after you
  • Ask the debt collector to put what they are asking for in writing. They will rarely do this
  • Contact your bank and credit providers immediately and report the incident
  • Never fill in your details on email forms and send them back
  • Always suspect emails that ask you for personal information, threaten you or offer you something that seems to good to be true
  • Never give out your personal information on the phone

It is also important to report any strange occurrences to your local authorities or complaints department so that others don’t fall into the trap. Make sure you apply for a loan at a genuine payday company in order to keep the good reputation of these firms intact.