Debt collection scams are one of the most frightening and persistent types of cons. Watch out for a new twist that claims to be collecting on cash advances!
How the Scam Works:
You receive an automated call. It’s from a company claiming to be collecting payment for a cash advance. The recording prompts you to stay on the line and speak to an agent.
Don’t do it! These calls often turn threatening. The “agent” will request you pay your debt immediately using a wire transfer or prepaid debit card. If you refuse, the “debt collector” will try to intimidate you. Targets report being threatened with arrest, lawsuits or garnished wages.
Despite the threats, these phony collection agents don't have any legal power. In most cases, the alleged cash advance doesn't exist.
Protect Yourself from Debt Collector Cons:
To keep yourself protected against debt collector scams know your rights.
For more information
Check out this recent alert about cash advance collections scam from the Washington State Department of Financial Institutions.
Also, read this article from the Federal Trade Commission about dealing with fake debt collectors.
To report a scam, go to BBB Scam Tracker.