Debt Collection Con Gets New Twist

A New Twist on Cash Advancement Scams
March 15, 2017

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. BBB Serving Central Indiana offers the following tips for dealing with debt collectors:

  • Just hang up: If you don’t have any outstanding loans, hang up. Don’t press any numbers or speak to an “agent.”
  • Ask the debt collector to provide official "validation notice" of the debt. In the US and most of Canada, debt collectors are required by law to provide the information in writing. The notice must include the amount of the debt, the name of the creditor and a statement of your rights. If the self-proclaimed collector won't provide the information, hang up.   
  • Ask the caller for his/her name, company, street address, and telephone number. Then, confirm that the collection agency is real.
  • Do not provide or confirm bank account, credit card or other personal information over the phone until you have verified the call.
  • Check your credit report.  In the US, check with one of the three national credit reporting companies (EquifaxTransUnionExperian). In Canada, check with Equifax Canada. This will help you determine if you have outstanding debts or if there has been suspicious activity.  
  • Place a fraud alert on your credit report. If the scammer has personal information, place a fraud alert with the three national credit reporting companies.

To report a scam, go to BBB Scam Tracker

For more information, please contact BBB at or 1-866-463-9222.

About BBB® Serving Central Indiana

ABOUT BBB: For more than 100 years, Better Business Bureau has been helping people find businesses, brands and charities they can trust. In 2015, people turned to BBB more than 172 million times for BBB Business Reviews on more than 5.3 million businesses and Charity Reports on 11,000 charities, all available for free at The Council of Better Business Bureaus is the umbrella organization for the local, independent BBBs in the United States, Canada and Mexico, as well as home to its national and international programs on dispute resolution, advertising review, and industry self-regulation. BBB Serving Central Indiana was founded in 1916 and serves 46 counties in Central Indiana.