Courtesy of taberandrew (via Flickr)
When you need money fast, payday loans seem like a good solution. But when you can’t pay, the fees begin adding up and suddenly a $300 loan costs you more than $700!
Remember, you do have other options – options that don’t come with quite the price payday loans do. And it’s not just crazy fees or high interest. Payday loan scams are leaving many folks with long term problems instead of a short term solution.
What the scam looks like:
Payday loan telephone collection scam
- You get a call from an FBI rep or other agency that says you’re late on your loan payment and if you don’t pay there will be legal action
- They also provide all of the necessary info to prove that it’s a legitimate collection call – social security numbers, date of birth, address, bank information, etc.
- If you question them or refuse to make payment, they begin making violent threats and harassing not only you, but your friends, family, even your employer.
- Finally, after verbal threats you agree to pay with a prepaid Visa and the scammer walks off with your money. Do not follow the instructions of the caller.
What do I do if I’ve received this call? The FBI suggests:
- Contact your bank and make necessary changes to your accounts
- Contact the three credit bureaus and put an Alert on your file
- Contact your local law enforcement agencies if you’re concerned about your safety
- File a complaint on the FBI website at www.IC3.gov
How to avoid scams and scammers:
- Learn more about scams, sign up for updates and find out how to Be Crime Smart
- Find out how to avoid the growing number of online scams
- Avoid payday loans and check cashers altogether. Take a look at some of your alternatives.
