Fraudulent Collection Companies Harassing Payday Loan Customers

According to PaydayLoan-Blog.com, a reliable payday loan resource blog, many online payday lenders are claiming that their customers are being pursued by illegitimate/ fraudulent collection agencies. They claim to represent various lenders attempting to collect money from them, in an aggressive & threatening manner.

Some customers are even ones who are current with their loans and some who have no open loans at all. "This disturbing fraudulent activity is sadly increasing with rapidity” per Robert A. , who is The Director of Collections for the Legal Department at a direct lender. "We have consistently apprised our customers of this matter, and we strive to counsel them regarding this”.

It appears that somehow fraudulent rings have obtained sensitive data of payday lenders. It seemingly is more commonplace for the smaller direct lenders.

Here are some precautionary methods to insure you are making payment to the actual lender:

1. Per the Fair Debt Collection Practices Act, third-party agencies are required to provide you with written documentation that the debt they are collecting on is valid. Request verification of said debt in writing, preferably certified mail.

2. If you are receiving repeated or harassing calls at work, home or on your cellular device, send a “Cease & Desist” letter, certified mail. Further calls from the receiving organization is a violation of Federal Law.

3. Consider a credit monitoring tool or system that alerts you when any activity takes place on your credit, such as an inquiry or a derogatory entry.

4. Ask the collector immediately “what is the name and mailing address of your company”. If they cannot provide a physical address, discontinue the conversation. If they ask you why, tell them you are confirming the validity of their company.

5. If they threaten arrest, extradition or lawsuits filed “against your social security number?”, etc., again, discontinue the conversation.

6. If you are suspicious of their validity, contact the original credit grantor directly and make an inquiry. Provide them with the phone number and name of the individual who contacted you.